Florida Corporate Income Tax

For businesses whose fiscal year corresponds to the calendar year this is due April 1.  Corporations doing business in Florida are subject to the 5.5% tax.

C-corporations pay the tax on form F-1120. If a corporation owes more than $2,500 annually in Florida corporate income tax, it must make estimated tax payments on form F-1120ES on or before the last day of the fourth, sixth and ninth months of the taxable year and the last day of the tax year. If the business has zero tax or owes less than $2,500 in tax, it may file the short form, F-1120A.

A limited liability company classified as a corporation for federal tax purposes must file a Florida corporate income tax return. Limited liability companies that are classified as partnerships for federal tax purposes are required to file a Florida Partnership Information Return (form F-1065) if they are doing business in Florida and one or more of their owners is a corporation. In addition, the corporate owner of an LLC that is classified as a partnership for Florida and federal income tax purposes must file a Florida corporate income tax return.

S-corporations in Florida usually do not have to file a Florida corporate income tax return unless the corporation reported federal taxable income.

Florida Reemployment tax

Legislation passed in 2012 changed the name of Florida’s Unemployment Compensation Law to the Reemployment Assistance Program Law and directed the focus of the program to helping Florida’s job seekers become reemployed. The Department of Revenue has changed “unemployment tax” to Florida “reemployment tax” on its web pages, forms and publications.

Floridians are required to report wages and pay taxes to the Reemployment Compensation program if they paid $1,500 in wages within a calendar quarter, have employed one person for any portion of a day in 20 different weeks during the calendar year or are liable for federal unemployment tax.

Many people do not know that the State of Florida requires Reemployment Tax on the wages of domestic household employees. If you are paying a nanny, caretaker, gardener, etc. you are required to pay Florida reemployment taxes on those wages.

Florida reemployment taxes are paid quarterly on form RT-6 to the Florida Department of Revenue. The Form RT-6 is due January 31, April 30, July 31, and October 31. If all of an employer’s employees perform domestic services exclusively and the employer is eligible for an earned tax rate, the business may select an annual filing option.

Florida Sales And Use Tax

Florida businesses must collect Florida sales and use tax for many products and services. If your business will involve taxable transactions, you must register as a Florida sales and use tax dealer using form DR-1 or at the Florida Department of Revenue’s e-file site.

Businesses pay through electronic filing or, if Florida sales and use tax is less than $20,000 per year, on form DR-15. Returns and payments are due on the first day of the next month after the tax was collected. Payments are late after the 20th of the month. Businesses that file $1,000 or less per year, however, may file quarterly.

If a business files $500 or less, it may file semiannually; $100 or less may file annually otherwise this is due the first day of the month.

Florida Discretionary Surtax

Many Florida counties impose an additional discretionary surtax on transactions that are subject to the state sales and use tax. Businesses report the surtax on form DR-15 with sales and use tax. This is due the first day of the month.

Florida Use Tax on Out-of-State Purchases

When out-of-state sellers fail to collect Florida sales tax, buyers must make the payment on their own. The tax applies to items purchased out of state from internet sites, mail order catalogs, auctions, shopping networks or toll-free shopping services. It also is imposed on items purchased during out-of-state travel when the merchandise is shipped to a location in Florida. Use form DR-15MO to make payment. This is due the first day of the month after the quarter in which purchase was made.

Florida Tangible Personal Property Tax

Businesses that own tangible personal property (equipment, furniture, computers, etc.) that is not included in the assessed value of the real property must pay an annual tax. Business inventory is not taxed. The tax is paid on form DR-405 to the county property appraiser. This is due on April 1.

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Create your  plan with an experienced, educated and seasoned estate planning attorney. Marshall McDonald has over 30 years of experience as an estate planning attorney, CPA tax attorney, and elder law attorney. Marshall will look at the big picture of your life and estate planning goals and work with you to create a plan that suits your needs.