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Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax.
An S-Corp election can be made by either a Florida corporation or a Florida LLC. An S-Corp election can have docHub impact on how your Florida business is taxed. Below, youll find an overview of the most important details youll need to know about the S-Corp election for a Florida business.
The Florida corporate income/franchise tax is imposed on all corporations for the privilege of conducting business, deriving income, or existing within Florida. Corporations, including entities that are taxed federally as corporations, are subject to the tax.
Corporations or other entities subject to Florida corporate income tax must file Florida Form F-1120 unless qualified to file Florida Corporate Short Form Income Tax Return, Florida Form F-1120A.
Corporations that do business in Florida are subject to a 5.5% income tax. However, LLCs, sole proprietorships and S corporations are, however, exempt from paying state income tax.
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You first have to file Form 8832 to have the IRS tax your LLC as a corporation. You then have to file Form 2553 to give your LLC S Corporation status. Running an LLC in Florida also requires you to file Annual Reports with the Department of State.
Homeowner and condominium associations that file federal form 1120 are required to file a Florida corporate income tax return regardless of whether any tax is due.
Any business that is required to register with a state, including corporations, partnerships, and LLCs, may be charged a franchise tax.
Understanding Franchise Taxes As of 2020, these states included Alabama, Arkansas, California, Delaware, Georgia, Illinois, Louisiana, Mississippi, New York, North Carolina, Oklahoma, Tennessee, and Texas. Kansas, Missouri, Pennsylvania, and West Virginia all discontinued their corporate franchise taxes.
S corporations are not subject to the tax, except for taxable years when they are liable for the federal tax under the Internal Revenue Code. An S corporation must file a Florida Corporate Income/Franchise and Emergency Excise Tax Return (Form F-1120, incorporated by reference in rule 12C-1.051, F.A.C.)

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