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State & Local Taxes
Florida does not levy a state income tax on individuals. However, Florida residents are not exempt from other taxes payable to the state. Business owners and those who own tangible personal property may owe significant taxes to the state. Corporate Income Tax and Tangible Personal Property Tax can be complicated to understand, calculate, and file. The experienced Sarasota accounting team of Koontz & Parkin, CPAs can ensure that you meet all legal requirements and limit your tax liability.
Florida Corporate Income Tax
Many companies that generate profits in Florida, including those located outside of the state, owe Florida corporate income tax, and even if no taxes are due, many of those companies must still file an information tax return each year. Corporate income tax can be confusing because there are different regulations for each type of business tax structure. For instance:
- An LLC taxed as a corporation must file the Florida corporate income tax return.
- An LLC taxed as a partnership may have to file Florida form F-1065
- A single member LLC is not subject to Florida corporate income tax. However, if the sole member of the LLC is an a corporation owns the company, it is not tax exempt, and the business must file Florida form F-1120.
- Entities which have elected to be taxed as S corporations and tax-exempt businesses do not have to file a Florida corporate income tax return unless they are subject to federal income tax
Tangible Personal Property Tax Is Governed by Numerous Regulations
All business owners, self-employed workers, and independent contractors who own tangible personal property are subject to tax on these assets each year. Florida law defines tangible property as, “all goods, chattels, and other articles of value (but does not include vehicular items) capable of manual possession and whose chief value is intrinsic to the article itself.” Furniture, computers, equipment, and signs are examples of such goods. Owners of tangible personal property should file Form DR-405 or an extension before April 1, or they will be subject to penalties. Each tax return is eligible for an exemption of up to $25,000 based on the value of the property, and if more than one person owns the property, each owner may qualify for a $25,000 exemption. In addition, each freestanding business site requires a separate DR-405 form with a related $25,000 exemption.
Tangible Personal Property Tax is complex, and many property and business owners find themselves filing form after form, still unsure as to whether they are meeting all of their legal requirements or paying tax at the proper rate. Sarasota accountants Koontz & Parkin, CPAs are highly familiar with this area of tax law and will work on your behalf to take advantage of the deductions to which you are entitled.
Call the Sarasota CPA Firm of Koontz & Parkin, CPAs for State and Local Tax Assistance in Southwest Florida
Jo Ann M. Koontz and Marina Parkin offer a powerful combination of in-depth knowledge of tax regulations, a firm grasp of the business world, and years of experience representing tax and business matters. To schedule a consultation, call the Sarasota office of Koontz & Parkin, CPAs at 941.328.3993.