5 Things Every New Business Owner in Florida Needs to Know About Taxes

Practical Startup Focus

• State vs. Federal Obligations – Florida has no personal income tax, but businesses must

comply with federal IRS rules (income tax, payroll tax, etc.).

• Sales & Use Tax – Most businesses selling goods (and some services) must register with the

Florida Department of Revenue and file DR-15 returns.

• Corporate & LLC Annual Fees – Florida LLCs and corporations must file an annual report

with Sunbiz.org and pay the $138.75+ fee to remain active.

• Payroll Taxes – Employers must handle federal withholding, Social Security/Medicare, and

Florida reemployment tax (unemployment tax).

• Recordkeeping – Accurate books are essential for both IRS compliance and Florida audits.

Compliance & Penalty Avoidance

• Register with the Florida Department of Revenue – If you collect sales tax or have

employees, registration is mandatory.

• Know Filing Deadlines – Late DR-15 or federal filings lead to penalties and interest quickly.

• Discretionary County Surtax – Marion and many other counties impose local surtaxes on top

of the 6% state sales tax.

• Annual Report Requirement – Missed filings can result in administrative dissolution of your

business entity.

• Separate Business & Personal Finances – Keeping accounts separate protects liability shields

and simplifies tax reporting.

Growth & Planning Angle

• Choose the Right Entity – LLC, S-Corp, or C-Corp decisions affect taxation and liability in

Florida.

• Leverage Deductions & Credits – Federal deductions (startup costs, vehicle use, home office)

apply to Florida businesses.

• Track Sales in Multiple Counties – Collect the correct surtax rate if selling in different

Florida counties.

• Plan for Estimated Taxes – Without state income tax, many owners forget quarterly IRS

estimated tax payments.

• Stay Ahead on Law Changes – Florida and federal tax rules change often (e.g., surtax

adjustments, new credits, IRS thresholds).

Bill Fox Tax & Accounting | Phone: 352-572-5732 | Ocklawaha, FL