Florida LLC Taxes: A Complete Overview for 2026

One of the most common questions we hear from new Florida LLC owners is: "What taxes does my LLC actually owe?" The answer depends on how your LLC is taxed at the federal level, what kind of business you run, and whether you have employees. This guide covers every tax obligation a Florida LLC owner needs to understand in 2026.

The Big Picture: Florida Has No Personal Income Tax

For most Florida LLC owners, the most important tax fact is this: Florida imposes no personal income tax. When your LLC's income passes through to your personal tax return, Florida takes nothing on that income. You pay only federal income tax on your LLC profits.

This is a significant advantage over states like California (up to 13.3% personal income tax), New York (up to 10.9%), or New Jersey (up to 10.75%). A Florida LLC owner earning $200,000 in net profit saves $20,000-$26,000 per year compared to the same business in those states.

Federal Income Tax on Florida LLC Profits

Single-Member LLC (Disregarded Entity)

A single-member LLC is taxed as a "disregarded entity" by default. The LLC is invisible for federal tax purposes - you report all income and expenses on Schedule C of your personal Form 1040. You pay federal income tax at ordinary income rates and self-employment tax (15.3% on net self-employment income up to the Social Security wage base, then 2.9% for Medicare).

Multi-Member LLC (Partnership)

A multi-member LLC is taxed as a partnership by default. The LLC files Form 1065 (informational only - no tax is owed at the entity level) and issues a Schedule K-1 to each member showing their share of income, losses, deductions, and credits. Each member reports their K-1 income on their personal return and pays income tax and self-employment tax accordingly.

LLC Electing S-Corporation Treatment

An LLC that files IRS Form 2553 is taxed as an S corporation. The LLC files Form 1120-S (no entity-level federal tax) and issues K-1s to members. The difference from default LLC treatment: owner-members pay themselves a reasonable salary (subject to FICA taxes), and remaining profits are distributed free of self-employment tax. This election can produce significant savings for LLCs with $50,000+ in net annual income.

LLC Electing C-Corporation Treatment

An LLC can elect to be taxed as a C corporation by filing IRS Form 8832. The LLC (still an LLC under Florida law) pays federal corporate income tax at 21% on net taxable income. Distributions to members are then taxed again as dividends. This creates double taxation - generally unfavorable for small businesses but worth considering for specific QSBS planning situations.

Florida State-Level Taxes on LLCs

Florida Corporate Income Tax (5.5%)

Florida imposes a 5.5% corporate income tax, but it applies only to:

• LLCs that have elected C corporation tax treatment with the IRS (Form 8832)
• The Florida-apportioned income of C corporations operating in Florida

LLCs taxed as disregarded entities, partnerships, or S corporations are not subject to Florida's corporate income tax. Pass-through income flows to the owner's personal return, and Florida has no personal income tax to pick it up.

Florida Sales and Use Tax

If your LLC sells taxable goods or certain taxable services in Florida, you must collect and remit Florida sales tax. Florida's state sales tax rate is 6%, plus local surtaxes that vary by county (typically 0.5% to 2.5%, bringing total rates to 6.5%-8.5% in most Florida counties).

Common taxable transactions in Florida include:

• Sales of tangible personal property (products, goods, merchandise)
• Commercial rentals of real property (at 4.5% plus surtax as of 2024 adjustments)
• Admissions to places of amusement
• Certain services (repairs, car washes, some communications services)

Most professional services (law, accounting, consulting) are not subject to Florida sales tax. Register for a Florida Sales Tax Certificate (DR-1) with the Florida Department of Revenue and file returns on the schedule assigned based on your revenue volume (monthly, quarterly, or semi-annual).

Florida Reemployment Tax (Unemployment Insurance)

If your LLC has employees (W-2 employees, not independent contractors), you must pay Florida reemployment tax - Florida's version of state unemployment insurance. The tax is paid entirely by the employer on the first $7,000 of each employee's wages per year.

New employer rate in 2026: 2.7% (new employers pay this rate for the first several years before being assigned an experience-rated rate based on their actual layoff history). Register with the Florida Department of Revenue before the first payroll.

Annual Report: The Mandatory Florida Filing

Every Florida LLC must file an annual report with the Florida Division of Corporations by May 1 of each year. The annual report fee is $138.75. If you miss the May 1 deadline, a $400 late fee is assessed on May 2. If you fail to file entirely, your LLC will be administratively dissolved by the Division of Corporations.

The annual report is filed at Sunbiz.org. It confirms your registered agent, principal address, and authorized representative - it is not a tax return. But it is a legal requirement, and missing it has serious consequences.

Florida LLC Tax Calendar for 2026

Frequently Asked Questions