Sales tax registration

Florida imposes a 6% state sales tax on the sale or rental of tangible personal property and certain services. Local option surcharges add 0.5% to 2.5%, depending on the county.

Who must register: Any business that sells taxable goods or services in Florida must register for a Sales and Use Tax account with the Florida Department of Revenue. This includes retailers, wholesalers, and certain service providers (like cleaning, pest control, and non-medical transportation).

How to register: Use the Florida DOR’s e-Services portal. You will need your federal EIN, business formation documents, and business address. Registration is free and typically processed within a few days.

Filing frequency: Most businesses file sales tax returns monthly or quarterly, depending on their volume. Returns are due on the 1st and late after the 20th of the month following the reporting period.

Reemployment (unemployment) tax registration

Florida’s reemployment tax is the state’s unemployment insurance tax. It funds unemployment benefits for workers who lose their jobs through no fault of their own.

Who must register: Any business that pays wages of $1,500 or more in a calendar quarter or has at least one employee for 20 weeks in a calendar year must register for reemployment tax.

Tax rate: New employers in Florida pay a standard rate of 2.7% on the first $7,000 in wages per employee per year. After a few years of experience, the rate adjusts based on your claims history.

How to register: Register through the Florida DOR’s e-Services portal. You will need your EIN and the date you first paid wages. Registration is free.

Filing: Reemployment tax returns are filed quarterly, with payments due on the last day of the month following each calendar quarter.

Corporate income tax

Florida imposes a 5.5% corporate income tax on corporations doing business in the state. However, many small business structures are exempt.

Who pays: C corporations with Florida net income exceeding $50,000 pay corporate income tax. LLCs (single and multi-member) and S corporations are generally not subject to Florida corporate income tax because they are pass-through entities. However, LLCs that elect to be taxed as C corporations must file.

How to register: Corporations register for corporate income tax through the Florida DOR’s e-Services portal. You will need your EIN and Articles of Incorporation.

Filing: Florida corporate income tax returns are due on or before the 1st day of the 4th month following the close of the tax year (May 1 for calendar year filers). Extensions are available.

Local business tax receipts and occupational licenses

In addition to state-level registration, most Florida cities and counties require a local business tax receipt (formerly called an occupational license).

Where to apply: Contact your city or county clerk’s office. Some municipalities handle this online, while others require an in-person visit.

Cost: Fees vary by location and business type. They typically range from $25 to $200 per year. Some cities charge based on the number of employees or gross revenue.

Requirements: You will typically need your EIN, Sunbiz registration, and proof of any professional licenses required for your industry.

Renewal: Most business tax receipts must be renewed annually. Late renewal may result in penalties, and operating without a current receipt may result in fines.

Step-by-step: Florida DOR registration process

Here is the general process for registering with the Florida Department of Revenue:

Step 1: Have your EIN, business formation documents (Sunbiz filing), and personal identification ready.

Step 2: Go to the Florida DOR website and access the e-Services portal. You will create an account or log in.

Step 3: Select the type of tax account you need: Sales and Use Tax, Reemployment Tax, Corporate Income Tax, or a combination.

Step 4: Complete the online application. You will provide your business information, ownership details, NAICS code, and estimated tax liability.

Step 5: Submit the application. You will receive a confirmation and your tax account number(s) via email or mail within a few business days.

Step 6: Set up your filing calendar and payment method. You can file and pay online through the e-Services portal.

Ongoing compliance: filing returns and recordkeeping

After registering, you have ongoing filing and recordkeeping obligations. Here is what to expect:

Sales tax returns: File monthly or quarterly depending on your volume. Even if you had no sales during a period, you may still need to file a zero return. Keep records of all sales, exemptions, and tax collected for at least 3 years.

Reemployment tax returns: Filed quarterly. Report wages paid to each employee. Keep payroll records, including hours worked and wages paid.

Corporate income tax returns: Filed annually. Keep income statements, balance sheets, and supporting documents.

Record retention: Florida law requires businesses to keep records of all tax-related transactions for at least 3 years. The DOR may audit your returns during this period.