What taxes apply to a new small business?

Taxes Applicable to New Small Businesses in Florida

When starting a small business in Florida, understanding your tax obligations is essential for smooth operations and compliance. Below are the key taxes that typically apply:

State Taxes for Small Businesses

• Sales and Use Tax: Florida imposes a 6% sales tax on most goods and some services. If your business sells taxable products or services, you must register with the Florida Department of Revenue and collect this tax from customers.
• Corporate Income Tax: C corporations doing business in Florida are subject to a 5.5% corporate income tax on net income. LLCs and S corporations generally pass income through to owners and do not pay this tax at the entity level.
• Reemployment Tax (Formerly Unemployment Tax): If you have employees, you must pay reemployment tax on the first $7,000 of each employee’s wages. This tax funds unemployment benefits.

Federal Taxes to Consider

• Federal Income Tax: All businesses must file federal income tax returns. The structure of your business (sole proprietorship, LLC, corporation) affects how income is reported and taxed.
• Payroll Taxes: If you hire employees, you are responsible for withholding and remitting Social Security, Medicare, and federal income taxes.

Operational Tips for Managing Taxes

• Register Early: Register your business with the Florida Department of Revenue to obtain a sales tax permit and handle tax filings.
• Maintain Accurate Bookkeeping: Track all income and expenses carefully to simplify tax reporting and identify deductible costs.
• Automate Tax Filings: Use accounting software or services that automate sales tax collection and payroll tax filings to reduce errors and save time.
• Stay Updated: As of 2026, review Florida tax rates and regulations annually to ensure compliance and optimize tax planning.
• Consult a Tax Professional: For complex tax situations or growth planning, consider working with a CPA experienced in Florida small business taxes.