The Florida-based corporate income and franchise tax is imposed on all corporations for the privilege of conducting business, generating income, or existing… Corporations, including entities that are federally taxed as corporations, are subject to this tax.
A corporation’s federal income, adjusted for Florida additions, subtractions and adjustments, is allocated to Florida based on the corporation’s activities in Florida, compared to its activities anywhere in the world. In most cases, this comparison includes the company’s property, payroll and sales.
Who must report?
All corporations (including tax-exempt organizations) conducting business, earning income or existing in Florida.
All banks and savings associations doing business, earning income or existing in Florida.
All associations or artificial entities doing business, earning income or existing in Florida.
Foreign (out-of-state) corporations that are partners or members of a partnership or joint venture in Florida. A “Florida partnership” is a partnership that is doing business, earning income, or existing in Florida.
A limited liability company (LLC) classified as a corporation for Florida and federal income tax purposes is subject to the Florida income tax code and must file a Florida business/franchise tax return.
An LLC classified as a partnership for Florida and federal income tax purposes must file a Florida corporate information return (Form F-1065) if one or more of its owners is a corporation. In addition, the owner of an LLC classified as a partnership for Florida and federal income tax purposes must file a Florida corporate income tax / franchise return.
A single member LLC disregarded for federal and Florida income tax purposes is not required to file a separate Florida income tax return. Income must be reported on the owner’s return if the single member LLC is owned, directly or indirectly, by a corporation. The corporation must file a Florida franchise/franchise tax return reporting its own income and that of the single member LLC, even if the corporation’s only business is the ownership of the single member LLC.
Homeowners and condominium associations that file the U.S. corporate income tax return (federal Form 1120) must file a Florida corporate/franchise tax return (Form F-1120) or the Florida short form corporate income tax return (Form F-1120A), to find out if a tax may be due. If you file a U.S. homeowners association tax return (Form 1120-H), you are not required to file a Florida return.