Florida is recognized for its business-friendly regulatory environment and favorable tax conditions. The state has no income tax for individuals and a competitive corporate income tax rate of 5.5%
Understanding the cost of apportionment in the state can help you accurately report earnings to the IRS and local government.
Corporations
- Filing Requirements. Florida imposes the corporate income/franchise tax on all corporations for the privilege of conducting business, deriving income, or existing within the state. The tax applies to corporations, including entities taxed federally as corporations. Florida apportions a corporation’s federal income, adjusted by Florida-specific additions, subtractions, and adjustments, based on the corporation’s activities in Florida relative to its activities elsewhere. In most cases, this comparison includes the corporation’s property, payroll and sales.
- Allocation and Apportionment. Florida follows the cost of performance rule in sourcing receipts from the performance of services to the state.
Partnerships
Filing Requirements. Every Florida partnership having any partner subject to the Florida Corporate Income Tax Code must file Florida Form F-1065. Note that a foreign (out-of-state) corporation that is a partner in a Florida partnership or a member of a Florida joint venture is subject to the Florida Income Tax Code and must file a Florida Corporate Income/ Franchise Tax Return (Florida Form F-1120).
Employees & individual filers
Florida does not collect an income tax on individuals. Therefore, you do not need to file a FL State Income Tax Return. However, you may still need to prepare and e-file a Federal Income Tax Return. While Florida does not impose state income tax, residents should be aware of other taxes, such as sales tax and property tax, which may apply depending on their circumstances.
Ensuring Accurate Tax Filings
Consulting an expert CPA can help you keep a handle on different laws and tax implications. We offer multi-state tax help.
At Fusion CPA our team is qualified to handle multistate taxes. We help you take the stress out of tax season, so you can focus on what really matters. Speak to our Tampa office.
To see how we can help you with a proactive tax strategy to save you time and money, schedule A Discovery Call with one of our CPAs. Or reach our offices.
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This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. This website does not provide all-inclusive information, and you should not rely on it as being all-inclusive.