Business Tax Services In Florida

Tax Services for Your Business

If you are a business owner in Tampa FL, you will surely love it here, especially the advantages you’ll get when it comes to business tax services. Compared to other states in the US, the business laws, tax preparations, tax returns, and business regulations here are very minimal, and the restrictions a few. The best advantage of getting a small business in Tampa FL is the fact that companies here pay less in taxes than anywhere else.

The businesses that pay for state income taxes in Tampa FL are C corporations or traditional corporations. If you are a startup, LLC, partnership, or S corporation, you are exempt from paying state income tax, but you will have all the protection afforded by law for your business. Even individuals in Florida are not subjected to any state income taxes. This means that any merchant in Florida is not taxed on any earnings that pass through from his business to himself. This is how efficient and business-friendly Florida is when it comes to business tax services they offer. Below are some other basics you need to know.

Sole Proprietorships

Sole proprietors are, in essence, the same as partnerships. Their income is rendered as personal income for federal income tax purposes. The business owner is paying federal tax on ordinary income tax. Florida tax laws provide that the income distributed from a sole proprietor as personal income, which will never tax. As the sole proprietorship is not a business, it is not required to pay any state taxes.

Partnerships

In Florida, the income from partnerships is paid to the partners in the business. The partners, in turn, pay federal income tax at ordinary income tax rates. Since Florida does not impose any state taxes on a regular income, small business owners operating as partnerships are not required to pay state income tax.

Corporations and Corporate Taxes

Whenever a small business is established as a C corporation, they are liable to pay state income taxes. However, if they are meant as S corporation, LLC, partnership, or sole proprietorship, they are 100% tax-exempt. However, for corporations, the rate of state taxes is still shallow compared to other states in the country. The regular corporate tax in Florida is 5.5% percent, where a corporation must pay the higher amount of the standard date minus all credits and exemptions, or alternatively pay the minimum tax rate amounting to 3.3% percent.

Limited Liability Company

For tax and tax preparation services, LLCs are considered partnerships. In this case, they do not pay state income tax in Florida as they are not deemed corporations. If the LLC is incorporated, they are liable to pay state income tax at 5.5% percent or 3.3% percent alternative minimum taxes, whichever is lowest. Setting a limited liability company in Florida is very straightforward, fast, and not expensive. This is recommended for those who want minimal protection for their assets while at the same time having zero state income tax liability.

S Corporations

Small businesses choose to establish an S corporation as it provides the exact same tax shields as C corporations but do not have a financial tax liability. The S corporations are trendy in Florida as they offer safeguards to businesses and financial institutions but, at the same time, exempts them from paying any state income tax. This status provides several legal benefits of incorporation, like protection of personal assets when judgment has been meted on the business.

Compared to a C corporation, an S corporation is not subject to federal income tax, as the income earned by the business would pass through to the merchant. Thus, the owners must pay federal income tax on any earnings generated by the company at regular income tax rates.

As for other income taxes, business owners in Tampa would basically pay nothing. The State of Florida acknowledges the S designation of many business owners. So, they do not treat S corporations as traditional corporations for tax preparation and tax services. Moreover, they do not make tax income that passes through the merchant. Small business owners whose businesses are situated in Florida, but also conduct significant companies in other states have to pay taxes in those states on the market and earnings earned there.

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