Starting a Business in Florida: The Tax Steps

Last reviewed: October 2026

1. Pick a structure

• Sole proprietor: no state filing needed. You report profit on Schedule C with your personal return. Simple, but no liability protection.
• LLC: filed with the state. For taxes, a one-owner LLC is treated like a sole proprietor unless you choose otherwise, and a multi-owner LLC files a partnership return. The main benefit is legal (liability), not tax.
• S corporation: a tax choice, not a separate kind of company. An LLC or corporation can elect it later. See Should I elect S corporation status?
• C corporation: pays its own tax, including Florida corporate income tax. Usually not the right first step for a small business.

Liability questions are legal questions, so talk with an attorney if you're unsure which structure protects you.

2. Get an EIN (free)

An Employer Identification Number is your business's tax ID. Apply free at IRS.gov and get it right away. Never pay a website just for an EIN. Even a sole proprietor can get one so you don't have to hand out your Social Security number on W-9s.

3. Register with Florida (Sunbiz)

• LLC: $125 to file ($100 filing fee plus $25 registered agent fee).
• Corporation: $70 to file ($35 plus $35 registered agent fee).
• Doing business under another name (a "fictitious name" or DBA): $50.
• Annual report: due between January 1 and May 1 every year. $138.75 for an LLC, $150 for a corporation. Filing after May 1 adds a $400 late fee.

Fees from the Florida Division of Corporations. Your city or county may also require a local business tax receipt.

4. Register for Florida taxes (if they apply)

• Sales tax: if you sell taxable goods or services, register with the Florida Department of Revenue before you start selling. Registering online is free.
• Reemployment tax: when you hire your first employee. See Hiring your first employee.

Florida has no personal income tax, so sole proprietors, LLCs and S corporation owners don't file a Florida income tax return on business profit in most cases.

5. Set up good habits on day one

• Open a separate business bank account and card. Mixing personal and business money is the number one cleanup job we see.
• Use bookkeeping software or a simple spreadsheet, and save receipts.
• Track business miles if you drive for work. Our mileage calculator shows what they're worth.
• Set money aside for taxes. Self-employment tax alone is 15.3% on most of your profit. See how much to set aside and quarterly estimated taxes.

More for business owners

• Starting a business in Florida
• Should I elect S corporation status?
• Hiring your first employee
• Closing a business
• Selling a business

Back to the Business Owner Center.