Florida is one of the most popular states for small businesses, largely because it has no personal income tax. But "no income tax" does not mean "no taxes." Florida businesses still face corporate income tax, mandatory annual reports, sales tax obligations, and employer taxes. Here is the complete picture of what you actually owe.
No Personal Income Tax — But That Does Not Mean Tax-Free
Florida is one of nine states with no personal income tax. For sole proprietors, single-member LLCs, and partnerships, this is a genuine advantage — your business income passes through to your personal return, and Florida does not add a state income tax layer on top of federal taxes.
However, this benefit does not extend to all entity types. If your business is structured as a C corporation — or if your LLC has elected to be taxed as a C corporation — you are subject to Florida's corporate income tax.
Florida Corporate Income Tax (Form F-1120)
Florida imposes a 5.5% corporate income tax on C corporations with net income exceeding $50,000. The first $50,000 of net income is exempt, which provides meaningful relief for smaller corporations.
The tax is reported on Form F-1120 (Florida Corporate Income/Franchise Tax Return), filed with the Florida Department of Revenue. The filing deadline is the 1st day of the 4th month after your tax year ends — April 1 for calendar-year filers (not April 15 like the federal return). Extensions are available for up to 6 months.
S corporations that maintain their federal S-Corp election are generally exempt from Florida corporate income tax because their income passes through to shareholders. However, S corporations must still file Form F-1120 (or the short form F-1120A) to claim this exemption.
Florida Annual Report — Due May 1
Every LLC, corporation, and limited partnership registered in Florida must file an annual report with the Florida Department of State, Division of Corporations. This is not a tax return — it is a corporate compliance filing that updates your business address, registered agent, and officer/member information.
- Deadline: May 1 every year
- Filing fee: $138.75 for LLCs, $150 for corporations
- Late fee: $400 if filed after May 1
- Dissolution risk: Failure to file by the third Friday in September results in administrative dissolution or revocation
This is one of the most commonly missed deadlines for Florida businesses. Many owners assume the annual report is optional or merely informational. It is not — missing it can dissolve your LLC.
Florida Sales Tax (Form DR-15)
Florida's statewide sales tax rate is 6%, with county-level discretionary surtaxes adding 0.5% to 2.5% depending on the county. If your business sells taxable goods or services, you must register for a sales tax certificate with the Florida Department of Revenue and collect tax from your customers.
Sales tax returns are filed on Form DR-15 (Sales and Use Tax Return). Your filing frequency depends on your sales volume:
- $1,000+ in tax per month: Monthly filing (due on the 1st of the following month, with a 20th-of-month payment deadline)
- $100–$999 in tax per month: Quarterly filing
- Less than $100 in tax per month: Semi-annual or annual filing
Florida offers a collection allowance of 2.5% (up to $30 per return) if you file and pay on time. This small discount rewards timely compliance.
Reemployment Tax (Unemployment Tax)
If your Florida business has employees, you must pay reemployment tax (Florida's version of state unemployment insurance, or SUTA). This is an employer-paid tax — it is not withheld from employee wages.
- Tax base: First $7,000 of each employee's annual wages
- New employer rate: 2.7% for most new employers
- Experience rate range: 0.1% to 5.4%, based on your claims history
- Filing frequency: Quarterly, via the Department of Revenue's online system
- Due dates: April 30, July 31, October 31, January 31
You must register with the Florida Department of Revenue as soon as you hire your first employee. Failure to register or pay reemployment tax on time results in penalties and interest.
Other Florida Business Considerations
A few additional items Florida business owners should be aware of:
- Tangible personal property tax: Florida counties levy an annual tax on business equipment, furniture, and fixtures. You must file a DR-405 return with your county property appraiser by April 1.
- No state-level franchise tax: Unlike California or Texas, Florida does not impose a separate franchise tax on LLCs.
- Commercial rent tax: Florida imposes a 2% tax (as of 2024, reduced from 4.5%) on the total rent paid for commercial real property. This is collected by the landlord as part of sales tax.
Summary: Florida Business Tax Calendar
- April 1: Florida corporate income tax return (F-1120) due for calendar-year filers
- April 1: Tangible personal property tax return (DR-405) due
- May 1: Annual report due to Division of Corporations
- Monthly/Quarterly: Sales tax returns (DR-15)
- Quarterly: Reemployment tax returns (if you have employees)
Stay on Top of Florida Tax Deadlines
Florida may not have personal income tax, but between the annual report, corporate income tax, sales tax, and reemployment tax, there is still plenty to track. BizTaxIntel builds a personalized deadline calendar for your Florida business and sends reminders before every due date.
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