Filing Corporate Tax Returns in Florida

June 28, 2012 by  Filed under: Taxes 

Corporate tax in Florida has to be paid by all corporations and artificial entities who are [1] operating their business in Florida, [2] getting income from Florida state. This includes business entities that are out of this state but somehow earning from this state. Both these types of businesses have to pay corporate tax, unless they have been granted an exempt. Even if no tax is due on them, they are liable to file return. Entities like sole proprietorship, individuals, estate of decedents and trusts are exempted from filing a return. Corporation and artificial entities include those who are not based in Florida but are partners or investors in some business operating in Florida using Florida Form F-1120.

Following business types are required to pay corporate income tax return in Florida.

– A Limited Liability Company which is classified as corporation in Florida
– If a corporation owns a company, directly or indirectly, then the corporation is required to file income tax return
– S corporation are required to pay Florida corporate income tax return if they are not paying federal income tax as per guidelines of Line 22c of federal Form 1120S.
– Homeowners and condominium associations should file the Florida Form F-1120 or F1120A regardless of whether their tax is due or not.

The corporate income tax return of Florida becomes due on or before the first day of the fourth month i.e. July, after the end of the tax year. Time of 15 days is given to companies to file this return. In case, you need an extension, you are required to submit Florida Tentative Income/Franchise and Emergency Excise Tax Return and Application. On approval, the authorities give an extended time of 6 months to file corporate income tax return. For partnerships, the extended time would be 5 months from the due date.

The amount, the businesses need to pay as a corporate income tax is calculated using the federal taxable income, which is filtered and modified according to various rules and laws of Florida State and finally, net taxable income and amount to be paid is retrieved. Corporations who are doing their business outside Florida have the opportunity to share their total income. This income is apportioned to Florida State using a three-factor formula. This formula works by fixing 25% each for factors for property and payroll and 50% is fixed for sales. Income of non-business which is allocated to Florida should be added to the Florida section of the adjusted Federal income. Then, reduce $5000 which is an exemption, to get net income earned in Florida. Then, compute final tax by multiplying net income in Florida by 5.5%. This way you’ll get how much amount of money is to be paid as corporate income tax in Florida.

Travis Henry is the founder of Miami Bookkeeping Solutions, a company providing professional bookkeeping services to small and medium-sized companies and not-for-profit organizations in Miami, Florida. For more information, please visit

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