What Taxes Do LLCs Pay in Florida? A Guide for Small Business Owners

Starting an LLC in Florida comes with some real tax perks — but it doesn’t mean you’re off the hook entirely. If you’re asking “what taxes do LLCs pay in Florida?”, here’s your clear, straightforward answer: it depends on how your LLC is set up, what you sell, and whether you have employees.

This guide breaks down every type of tax Florida LLCs need to know about in 2025. Whether you’re just forming a business or trying to clean up your tax situation, this will help you make smarter decisions and avoid common (and costly) mistakes.

How Florida Treats LLCs for State Taxes

Let’s start with the good news: Florida is one of the few states that doesn’t impose a personal state income tax. That means if your LLC is taxed as a pass-through entity — which most are by default — your profits aren’t taxed by the state. Instead, they pass through to your personal federal return.

But that doesn’t mean there are zero taxes. You still have to deal with:

• Federal taxes (based on your tax classification)

• Payroll taxes (if you hire employees)

• Sales tax (if you sell taxable goods or services)

• Annual state filings (to keep your LLC active)

So let’s walk through what that really looks like.

Common Tax Classifications for Florida LLCs

Your LLC’s tax obligations mostly depend on how you’re classified with the IRS. Here’s how each setup works:

Single-Member LLC (Disregarded Entity)

If you’re the only owner, the IRS treats your LLC as a disregarded entity by default. That means:

• You report all business income and expenses on Schedule C of your personal Form 1040

• You pay federal income tax and self-employment tax (15.3% on net earnings)

• Florida does not tax your income at the state level

This setup is simple, especially for solo entrepreneurs, consultants, and freelancers.

Multi-Member LLC (Partnership)

For two or more owners, your LLC is taxed as a partnership unless you elect otherwise:

• The LLC files Form 1065 with the IRS

• Each partner gets a Schedule K-1 reporting their share of income or loss

• Partners pay tax individually — again, no Florida income tax

This model is common for law firms, agencies, or family-run businesses.

LLC Taxed as an S Corporation

Many Florida LLCs eventually elect to be taxed as an S corporation (via IRS Form 2553) to save on self-employment tax.

Here’s what changes:

• You file Form 1120-S

• Owners take a “reasonable salary” (subject to payroll tax) and may take additional profits as distributions, which are not subject to self-employment tax

• Requires more bookkeeping, payroll processing, and tax planning — but the tax savings can be substantial

This setup is ideal for LLCs generating steady profit over $75k/year.

LLC Taxed as a C Corporation

Less common for small businesses, this means your LLC is a completely separate tax entity:

• You file Form 1120

• The LLC pays corporate tax on profits (5.5% in Florida)

• Owners then pay tax again on dividends (a concept known as double taxation)

You’d typically only choose this route for specific tax strategy reasons or outside investment needs.

Do Florida LLCs Pay Sales Tax?

Yes — if you sell taxable goods or certain services.

Florida’s state sales tax rate is 6%, and some counties add their own surtax on top. As an LLC, you’re required to:

• Register with the Florida Department of Revenue for a sales tax certificate

• Collect sales tax at the point of sale

• File regular returns (monthly, quarterly, or annually)

This applies to:

• Retailers and e-commerce stores

• Contractors selling tangible goods

• Service-based businesses providing taxable services (e.g., commercial cleaning)

To avoid confusion or penalties, work with a qualified tax advisor or use automated sales tax tools. Or connect with Hacker Johnson’s Tampa tax specialists to set things up right from the start.

What About Payroll Taxes?

If your Florida LLC has employees, you’re responsible for both federal and state employment taxes, including:

• Federal payroll tax: Includes Social Security, Medicare, and federal income tax withholding

• Employer contributions: You pay the employer side of Social Security and Medicare

• Florida reemployment tax: This is the state’s version of unemployment insurance, paid on the first $7,000 of each employee’s wages

Failing to pay these taxes correctly can trigger IRS audits, late fees, and even personal liability. If this is new territory for you, consider working with a corporate tax CPA in Fort Lauderdale or your local CPA to stay in compliance.

Estimated Quarterly Taxes for LLC Owners

Whether your LLC is taxed as a sole proprietorship, partnership, or S corporation, you may need to pay estimated quarterly taxes. These are advance payments toward your expected income tax and self-employment obligations.

You’re typically required to pay if you expect to owe at least $1,000 in taxes after subtracting withholding and credits.

Due dates for 2025 are:

• April 15

• June 15

• September 15

• January 15 (2026)

Missing a deadline can result in underpayment penalties. Use IRS Form 1040-ES or work with a local CPA to calculate what you owe each quarter.

Annual Filing Requirements for Florida LLCs

Florida LLCs are required to file an Annual Report every year by May 1st to maintain their active status. Here’s what to know:

• Fee: $138.75

• File through the Florida Division of Corporations website

• Late fee: $400 (and potential administrative dissolution if ignored)

This isn’t a tax per se, but it’s a non-negotiable yearly obligation.

Business Tax Deductions You Should Track

Even though Florida spares you from state income tax, keeping your deductions organized helps reduce your federal tax bill. Here are common deductions LLCs in Florida should track:

• Home office expenses

• Business vehicle mileage

• Office supplies and equipment

• Business insurance

• Professional services (CPA, attorney)

• Marketing and advertising

• Software and tools

• Travel and meals (within IRS limits)

• Payroll and contractor expenses

Working with a firm like Hacker Johnson’s Orlando office can help you stay audit-ready and maximize your write-offs legally.

What Happens If You Don’t Pay?

Skipping taxes or ignoring filings can quickly snowball. Here’s what you’re risking:

• Penalties and interest: Late filings or underpayments add up fast

• Administrative dissolution: If you skip your Florida annual report, the state can shut down your LLC

• IRS audits: Red flags like unfiled payroll taxes, missing W-2s, or excessive write-offs could trigger an audit

• Personal liability: In some cases, LLC owners can be personally responsible for unpaid payroll taxes

Need to catch up on filings or IRS notices? Reach out to Hacker Johnson’s tax resolution team before penalties pile up.

Talk to a CPA Who Gets It

Smart financial decisions start with the right conversation. Let’s figure out what works best for your business.

Speak With a CPA

Frequently Asked Questions

Do Florida LLCs pay franchise tax?

Not in the traditional sense. Only LLCs taxed as corporations pay Florida’s corporate income/franchise tax. Other LLCs don’t pay a state-level income tax.

Can I form an LLC and still be taxed as an S-Corp?

Yes — you can form an LLC and elect S corporation tax treatment by filing Form 2553. This can lower your self-employment taxes if done properly.

Is there a business license or local tax requirement in Florida?

Yes. Many counties and cities require a local business tax receipt (formerly an occupational license). This is separate from state filings and is handled at the county level.

Should I hire a CPA for my Florida LLC taxes?

Absolutely. A CPA can help you:

• Choose the right tax structure

• Set up payroll and sales tax accounts

• Maximize deductions

• Avoid IRS and state-level penalties

Check out Hacker Johnson’s full-service tax support for Florida-based businesses.

Final Thoughts

Setting up an LLC in Florida gives you a solid head start thanks to the state’s no-income-tax advantage. But “easy” doesn’t mean “automatic.” You still need to file federal taxes, pay payroll and sales tax if applicable, and handle quarterly estimated payments.

The key to staying out of trouble — and making the most of your business income — is understanding which taxes apply to your setup and getting professional support when you need it.

Whether you’re running a one-person shop or managing a growing team, Hacker Johnson is here to help Florida LLCs stay compliant, efficient, and audit-ready.