“Florida has no income tax.” It’s one of the first things people hear when they move here or start a business here. For individuals, it’s true. But many owners hear that line and assume their tax life is going to be simple.
Then the notices start arriving. A penalty from the county. A late fee from the state for a missed annual report. A sales tax bill nobody saw coming.
The truth is that Florida businesses deal with a surprising number of state and local taxes and filings. Experienced accountants in Fort Lauderdale see the same oversights every single year. Here are the ones to watch for.
Why “No Income Tax” Doesn’t Mean “No Taxes”
Florida funds itself in other ways, mostly through sales tax, property tax and business fees. So while you won’t file a state personal return, your business may have several state and local obligations on top of its federal ones.
Who gets caught out most?
New business owners, people relocating from other states, and fast-growing companies are the most likely to be surprised.
The Filings Accountants in Fort Lauderdale See Missed Most
The Sunbiz annual report
Every Florida corporation and LLC must file an annual report with the Division of Corporations between January 1 and May 1. Miss the deadline and most for-profit businesses face a $400 late fee. Miss it entirely and the state can dissolve your company.
Tip: Set a recurring reminder for early January, so it’s done before tax season gets busy.
Tangible personal property tax
Own desks, computers, tools or equipment? Florida businesses generally need to file a tangible personal property return (Form DR-405) with the county property appraiser by April 1. There’s a $25,000 exemption, but you usually have to file to claim it.
Sales and use tax
Florida’s state sales tax is 6%, and counties add their own surtax on top. Broward County currently adds 1%. If you sell taxable goods or services, you need to register, collect the tax and send it in on time. Use tax can apply too, for example when you buy taxable items from an out-of-state seller who doesn’t charge Florida tax.
Reemployment tax
If you have employees, you likely owe Florida reemployment tax, the state’s version of unemployment tax. It’s paid on the first $7,000 of each employee’s wages each year, with reports due every quarter.
Florida corporate income tax
Here’s the exception to the “no income tax” rule. C-corporations doing business in Florida generally owe state corporate income tax at 5.5%, after an exemption on the first $50,000 of taxable income.
Local business tax receipts
Most Florida cities and counties require a local business tax receipt, renewed every year. The cost is small, but operating without one can lead to penalties.
What Happens If You Miss One?
Penalties vary, but they add up fast. Late fees, interest and, in some cases, losing good standing with the state can affect your ability to get a loan, sign contracts or sell your business.
Here’s an example. A Fort Lauderdale contractor forgets her tangible property return two years in a row. She ends up paying penalties on top of the tax, plus the cost of sorting out the paperwork. A simple calendar reminder would have saved her hundreds of dollars.
How a Tax Preparation Service in Coral Gables or Fort Lauderdale Keeps You Compliant
A good tax preparation service in Coral Gables or Fort Lauderdale doesn’t just handle your federal return. It keeps a calendar of every state and local deadline your business faces, and makes sure nothing slips through the cracks.
Questions to ask your accountant
- Which Florida taxes apply to my business?
- Am I registered correctly for sales tax and reemployment tax?
- Who is tracking my annual report and property tax deadlines?
- Do I need to file in any other states?
Florida may be famous for having no personal income tax, but running a business here still comes with real obligations. The good news is that every one of them is manageable with the right system in place. Partner with experienced accountants in Fort Lauderdale, and you can stop worrying about surprise notices and get back to growing your business.
