You might be asking if you have to submit a separate tax return for your company if you operate a business in Florida and have set up a S Corporation (S Corp). Yes, Florida does require S Corps to submit a tax return, to address your question.
S Corps are distinctive legal organizations that provide their owners specific tax advantages. One of these advantages is that the company itself is not subject to income tax. The income is instead “passed through” to the owners’ individual tax returns and is then taxed at their personal tax rate. This does not imply that S Corps are not required to file tax returns, nevertheless.
S Corps must submit a separate tax return to the Florida Department of Revenue in Florida. The Florida Corporate Income/Franchise Tax Return (Form F-1120) is the name of this report. This return must be submitted by May 1 of each year.
S Corps might additionally need to submit a federal tax return to the Internal Revenue Service (IRS) in addition to the state tax return. Depending on when the company’s fiscal year ends, there are several filing deadlines for federal tax returns. What Does a S Corp Cost in Florida?
The cost to establish a S Corp in Florida varies depending on a number of variables, including the complexity of the corporate structure and the level of legal or accounting assistance required. However, the Florida Division of Corporations charges $70 for the filing of the Articles of Incorporation.
For a variety of reasons, a S Corp may decide to be the owner of an LLC. One justification is that, like a S Corp, an LLC provides its owners with liability protection. Additionally, the management structure and tax status of an LLC may be more adaptable.
While creating an LLC has many benefits, there are some drawbacks as well. An LLC may be subject to self-employment taxes, which is a drawback. In comparison to a corporation, an LLC could also have fewer structure and formality. If I Own a S Corp, Am I Considered Self-Employed?
You are not regarded as self-employed for tax reasons if you own a S Corp. Instead, you are regarded as a worker for the company and are entitled to a salary that is appropriate and subject to payroll taxes. As a shareholder, you receive the remaining income, which is then taxed at your individual tax rate.
In conclusion, S Corps are nevertheless obliged to submit Florida tax returns even though they provide their owners with some tax advantages. Additionally, there are a number of variables that affect the cost of incorporating a S Corp in Florida, and there are a number of reasons why a S Corp could decide to own an LLC. Even if creating an LLC has several drawbacks, holding a S Corp does not qualify you as self-employed for tax purposes.