Florida LLC Taxes: Everything You Need to Know
You’ll need to pay Florida LLC taxes if you own and operate a LLC in the state of Florida and then take additional steps in order to maintain your business.3 min read
You’ll need to pay Florida LLC taxes if you own and operate a Limited Liability Company in the state of Florida. After forming your LLC, you’ll need to take additional steps in order to maintain your business.
Before thinking about the taxes that your LLC could owe, you will want to first think about whether or not you need to obtain an Employer Identification Number (EIN). This number is required if you have employees. Furthermore, for all LLCs with more than one member, it is required. Even if you operate a single-member LLC with no employees, however, you might still need to obtain an EIN, as most financial institutions require an EIN in order to open a business bank account.
There are several types of taxes that your LLC could owe, including:
- State business taxes
- State employer taxes
- Sale and use tax
When it comes to federal income taxes, the LLC generally doesn’t pay such taxes, as the profits and losses of the business pass through to the members who report it on their own tax returns.
State Business Taxes
Since most LLCs operate as pass-through entities (sole proprietorship or partnership), the LLC does not pay state business taxes, as the members of the LLC pay those taxes. If you elect to be taxed as a corporation, then you will need to pay state income taxes, as corporations are viewed as separate and distinct legal entities, and thus, pay business tax.
However, some states do impose a tax on the LLCs for doing business in the State. Florida is not one of those states.
State Employer Taxes
If you intend on hiring employees, then you will need to pay state employer taxes. You’ll also need to register for unemployment insurance taxes, which are handled through the Department of Revenue (DOR). You can register for these taxes online, by completing Form DR-1, also referred to as the Florida Business Tax Application.
Every quarter, you’ll also need to file Forms RT-6 and RT-6A to report the wages of your employees, and pay the unemployment insurance taxes. If you need additional help or have questions regarding this process, you can visit the Florida Department of Revenue website.
Sales and Use Tax
If you plan on selling goods through your LLC, then you will need to collect sales tax on the sale of each product, as well as pay sales tax. Therefore, you will need to register for the sales and use tax with the Florida Department of Revenue, and made periodic sales tax payments for the products sold. This tax will also be specified in Form DR-1. Once you register, you’ll receive a Certificate of Registration (Form DR-11). When determining how often to pay the sales tax, you’ll have to choose whether you will file it annually, bi-annually, quarterly, or monthly. This is wholly dependent on how you choose to submit the payment. Some businesses find it easier to submit payments monthly, to prevent higher costs if paying less frequently.
Registering Your Florida LLC in Other States
If you plan on doing business in another state, then you must register your LLC in that state too. You’ll have to follow the protocol for the requirements of registering a business in that state before you can begin doing business in that state. While some states don’t require registration, other states do. Specifically, if you are going to have an additional physical location, hire employees, or solicit business in that other state (i.e., advertising, mailings, etc.), then you will have to register as a foreign business. Registration typically involves obtaining a certificate from that state. Keep in mind that before registration in another state, you might need to provide a Certificate of Good Standing proving that your business is in good standing in the State of Florida.
If you need help forming a Florida LLC, or if you need assistance filing your Florida LLC taxes, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.