The new year is upon us, and so is tax season. And as tax season quickly approaches, it is important for Florida business owners to be aware of their tax obligations. Here's the 411 on when and how to file and pay:
FEDERAL:
Income Tax
Corporations
Due: March 15 if the corporation operates on a calendar year. Otherwise due on the 15th day of 3rd month following the end of tax year.
- C-corporations - Form 1120
- LLC Taxed as a Corporation - Form 1120
- S-corporation - Form 1120S (Note: an S-corp itself is generally not liable for any tax
Partnerships
Due: April 15 if the partnership operates on a calendar year. Otherwise due on the 15th day of 4th month following the end of tax year.
- Partnership - Form 1065
- LLC Taxed as a Partnership - Form 1065
LLCs
- Most LLCs with more than one member file a partnership return (Form 1065).
Due: April 15 if the LLC operates on a calendar year. Otherwise due on the 15th day of the 4th month following the end of the LLC's tax year.
- To be taxed as a corporation, a Form 8832 must be filed. LLCs taxed as corporations file a corporate return (Form 1120).
Due:March 15 if the LLC operates on a calendar year. Otherwise due on the 15th day of the 3rd month following the end of the LLC's tax year..
Single-Member LLCs
- Sole Member = Individual - Form 1040.
If you would prefer to have the LLC file as a corporation, you must file Form 8832. LLCs taxed as corporations file a corporate return (Form 1120).
- Sole Member = Corporation - Form 1120 (for C-corps) or Form 1120S (for S-corps)
Businesses with employees must withhold federal income, Medicare and Social Security taxes from wages. When and how these taxes are paid to the government depends on a business's aggregate annual employment tax liability.
- Small Businesses With Annual Employment Tax Liability of Less Than $1,000: Payments may be made annually on January 31 by filing Form 944, Employer's Annual Federal Tax Return.
- Businesses With Annual Employment Tax Liability in Excess of $1,000: Payments are generally made on a monthly or semi-weekly basis. For businesses with total annual deposits in excess of $200,000, the Electronic Federal Tax Payment System is required. Businesses with total annual deposits of less than $200,000 may use Form 8109-B to make these payments. The tax should be reported on Form 941, Employer's Quarterly Federal Tax Return
Due: Jan. 31, April 30, July 31, Oct. 31
- Must be paid for employees who were paid $1,500 in wages within a calendar quarter or who were employed for any portion of a day in 20 different weeks during the year.
- Due at the end of the month that follows the last day of each quarter.
- Electronic Payment or Form 8109-B.
- Paid on a quarterly basis, but reported on an annual basis (Form 940).
FLORIDA:
Florida Corporate Income Tax
Due: April 1 if the corporation operates on a calendar year. Otherwise due on the 1st day of 4th month following the end of tax year.
- Corporations that do business in Florida are subject to a 5.5% state corporate income tax.
- C-corporations generally pay tax on Form F-1120. However corporations with a tax liability that is less than $2,500 may file a short form, F-1120A.
Estimated Tax Payments: Corporations that owe more than $2,500 in Florida corporate income tax for the year must make estimated tax payments on Form F-1120ES on or before the last day of the fourth, sixth and ninth months of the taxable year and on the last day of the tax year.Limited Liability Companies:
- LLCs which are classified as corporations for federal tax purposes are required to file a Florida corporate income tax return.
- LLCs which are classified as partnerships for federal tax purposes are required to file a Florida Partnership Information Return (Form F-1065) if they are doing business in Florida and one or more of their owners are corporations.
- A corporate owner of an LLC that is classified as a partnership for Florida and federal income tax purposes must file a Florida corporate income tax return.
Due:Jan. 31, April 30, July 31, Oct. 31:
A Florida business is required to report wages and pay taxes to the Unemployment Compensation program if:
- It paid $1,500 in wages within a calendar quarter;
- Employed one person for any portion of a day in 20 different weeks during the calendar year; or
- is liable for federal unemployment tax.
Generally paid on a quarterly basis by submitting Form UCT-6 to the Florida Department of Revenue.Florida Sales and Use Tax
Due: First day of the month
- Businesses with taxable transactions must register with the Florida Department of Revenue by filing Form DR-1 or e-filing via the Florida Department of Revenue's website.
- Businesses that collect more than $20,000 annually in sales and use tax must pay through electronically.
- Businesses that collect less than $20,000 annually may use Form DR-15.
- Returns and payments are generally due on the first day of the month following the month in which the tax was collected. However, businesses that do not collect substantial amounts of sales and use taxes may file and pay on a less frequent basis. Specifically, businesses that collect less than $1,000 per year may file on a quarterly basis; businesses that collect $500 or less per year may file on a semiannual basis; and businesses that collect $100 or less per year may file on an annual basis.
Due: First day of the month
- Some counties impose an additional surtax on transactions that are subject to the state sales and use tax.
- In such counties, this surtax is reported on Form DR-15 with sales and use tax.
Due:First day of the month following the quarter in which purchase was made
- When out-of-state sellers fail to collect Florida sales tax, buyers must make the payment on their own.
- Applies to merchandise purchased from the Internet, shopping networks, mail order catalogs, etc.
- Applies to merchandise purchased while traveling out of state and shipped to Florida.
- Paid on Form DR-15MO
Due: April 1
- Florida businesses that own tangible personal property (e.g., computers, furniture, equipment) must this tax annually.
- Inventory is not subject to tax.
- Paid to county property appraiser on Form DR-405.
