Florida Franchise Tax

January 31, 2021

Florida Franchise Tax Rules & Calculation

Florida Franchise Tax

For eCommerce businesses operating out of Florida, the franchise tax obligations for your business will depend on whether your business entity is formed as a limited liability company (i.e., LLC), partnership or corporation. Below we outline the 411 on Florida franchise taxes for your business.

Note that the due dates we included are for calendar year taxpayers and may not apply to you if your business has a tax year that does not end on December 31. In addition, the information below refers only to franchise or net worth tax and does not include registration fees or other regulatory payments that may be due by your business.

  For more information on Franchise taxes, check out the following Blog.

LLC and Limited Partnerships – Due Date: N/A

Florida does not impose a franchise tax on most LLCs or partnerships unless the entity is treated as a corporation for U.S. federal and Florida tax purposes.

Corporations – Due Date: May 1

What Online Sellers Need to Know

  • The Florida corporate income/franchise tax is imposed on all corporations (including LLCs taxed as corporations) for the privilege of conducting business, deriving income, or existing within Florida.
  • Florida corporate income/franchise tax is computed together using federal taxable income, modified by certain Florida adjustments, additions, and subtractions, to determine adjusted federal income.    
    a. An exemption (currently, $50,000) should be subtracted from the adjusted federal income to arrive at Florida net income.    
    b. Compute the tax by multiplying Florida net income by the appropriate tax rate (i.e., generally 5.5% but reduced to 3.535% for tax years beginning between January 1, 2021 to December 31, 2021).
  • Corporate income tax is reported using a Florida Corporate Income/Franchise Tax Return Form F-1120 or Form F-1120A. Corporations must file Florida Form F-1120 each year, even if no tax is due.
  • The due date is based on the corporation’s tax year (May 1 for a calendar year taxpayer).
  • If you file your return or pay tax late, penalties and interest may be due.
  • If a corporation owes more than $2,500 in Florida corporate income tax annually, it must make estimated tax payments on a Declaration/Installment of Florida Estimated Income/Franchise Tax (Florida Form F-1120ES).

How to pay the annual franchise tax?

Here are step-by-step instructions for paying Florida franchise tax:

  1. Visit the Florida’s Department of Revenue’s website.
  2. Click on “Enroll to File and Pay Electronically” if not previously enrolled.  
    a. Click on the link to “enroll for eServices.”  
    b. Choose Enroll new account(s) and follow the steps indicated.
  3. After enrollment, you can return to the Florida’s Department of Revenue’s website.
  4. Choose “File and Pay Taxes, Fees, and Remittances”
  5. You are able to file and pay your Florida corporate income tax return (Florida Form F-1120) electronically through the IRS Modernized e-File (MeF) Federal/State Electronic Filing Program using electronic transmitters approved by the IRS and the Florida Department of Revenue.
  6. You must file and pay electronically if you paid $20,000 or more in tax during the state of Florida’s prior fiscal year (July 1 - June 30).

    The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.
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