Learn about the annual report and tax filing obligations for Florida limited liability companies.
To establish and operate a Florida limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant continuing reporting and state tax filing obligations for Florida limited liability companies.
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Report Annual
Your LLC must submit an annual report with the state of Florida. You may submit your annual report online at the Sunbiz website. To finish the report, you mostly need to validate previously provided information about addresses, your registered agent, and the persons allowed to operate your LLC. If required, you may make modifications.
Every year, the annual report is due on May 1. The current filing fee for a limited liability company is $138.75. (Additional costs apply to other kinds of enterprises.) Late reporting are subject to a $400 penalty.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. (Because Florida is one of the few states without a personal income tax, LLC members will not incur state income tax on their LLC revenues.) Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Florida, on the other hand, is not one of those states.
However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Florida, like practically every other state, taxes corporate revenue. The company income tax in Florida is normally a flat 5.5% of federal taxable income (with some exemptions). There is also a different minimum income tax. The Florida Department of Revenue collects the tax (DOR). To pay the tax, use the form of Form F-1120 that is applicable for your specific company.
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in Florida, on the other hand, may be required to pay state taxes.
You will very certainly need to register to pay state unemployment insurance (UI) taxes. The DOR is in charge of these taxes. You must register for these taxes online (using Form DR-1, Florida Business Tax Application). Then, each quarter, utilize Forms RT-6 and RT-6A to record your earnings and pay your unemployment insurance taxes.
Taxes on Sales and Use
If your LLC sells items to clients in Florida, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may register either online or by mailing Form DR-1. Following registration, you will get a Certificate of Registration (Form DR-11) and additional papers. Then, on a monthly, quarterly, semiannually, or yearly basis, you must file sales tax reports with the DOR. This may be done on paper or online.
Other States Registration
If you want to do business in states other than Florida, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.