Florida LLC Tax Obligations: A Comprehensive Guide for 2025

Understanding the tax obligations of your Florida LLC is crucial for maintaining compliance and optimizing your business’s financial health.

Florida offers a favorable tax environment for LLCs, but it’s essential to grasp the nuances to ensure you’re meeting all requirements.

At Corporate Mile, we aim to simplify this process for you.

Federal Tax Classification of LLCs

The Internal Revenue Service (IRS) does not recognize LLCs as a distinct tax entity. Instead, LLCs are taxed based on their structure:

• Single-Member LLCs: Treated as “disregarded entities,” meaning the owner reports business income and expenses on their personal tax return using Schedule C.
• Multi-Member LLCs: Classified as partnerships, requiring the filing of Form 1065. Each member receives a Schedule K-1 to report their share of profits and losses on their personal tax returns.
• LLCs Electing Corporate Taxation: An LLC can choose to be taxed as a C Corporation or S Corporation by filing the appropriate forms with the IRS. This election affects how the LLC’s income is taxed at the federal level.

Florida State Tax Obligations

Florida’s tax structure is advantageous for many LLCs, and we showed that in a previous material published on our news section:

• No Personal Income Tax: Florida does not impose a personal income tax, so LLC members typically do not pay state income tax on their share of the business’s profits.
• Corporate Income Tax: LLCs that elect to be taxed as corporations are subject to Florida’s corporate income tax, currently set at 5.5%. These entities must file the Florida Corporate Income/Franchise Tax Return (Form F-1120).
• Sales and Use Tax: LLCs selling tangible goods or certain services may be required to collect and remit sales tax. Registration with the Florida Department of Revenue is necessary, and regular filings are required.
• Reemployment Tax: LLCs with employees must register for and pay the state reemployment tax, which funds unemployment compensation.

Local Tax Considerations

Depending on your LLC’s location and business activities, local taxes and fees may apply:

• Business Licenses: Many municipalities require a local business tax receipt or occupational license.
• Local Surtaxes: Some counties impose additional sales taxes, known as surtaxes, which must be collected and remitted along with the state sales tax.

Annual Reporting Requirements

All Florida LLCs must file an annual report with the Florida Division of Corporations by May 1 each year. This report updates or confirms the company’s information on state records. The filing fee is $138.75. Failure to file can result in a $400 late fee and administrative dissolution of the LLC.

Federal Reporting Requirements

In addition to state obligations, LLCs must adhere to federal tax filing requirements:

• Form 1065: Multi-member LLCs must file this partnership return annually.
• Schedule K-1: Each member of a multi-member LLC receives this form to report their share of income, deductions, and credits.
• Form 1120 or 1120S: LLCs electing corporate taxation must file the appropriate corporate tax return.

Compliance Tips

To ensure your LLC remains in good standing:

• Maintain Accurate Records: Keep detailed financial records to simplify tax filings and support any deductions or credits claimed.
• Stay Informed: Tax laws can change; regularly consult with a tax professional or accountant to stay updated on any new obligations.
• Use Professional Services: Consider engaging services like Corporate Mile to handle filings, ensuring accuracy and timeliness.