Does Florida Have a Franchise Tax for LLCs?
No. Florida does not impose a franchise tax on LLCs. Florida has no state income tax, no franchise tax, and no gross receipts tax on any business entity. Your LLC's only state-level tax obligation is sales tax if you make taxable sales. The annual report fee ($138.75) is an administrative filing requirement, not a tax.
What Taxes Do Florida LLCs Actually Owe?
Federal Income Taxes
Your LLC's federal tax treatment depends on member count. Single-member LLCs default to disregarded entity status and report income on Schedule C. Multi-member LLCs default to partnership taxation and file Form 1065. Both structures trigger self-employment tax on LLC member income. Estimated federal tax payments are due April 15, June 15, September 15, and January 15.
You may elect S-corp or C-corp treatment if it reduces your overall tax burden, but this is optional.
Sales Tax
If your LLC makes taxable sales, you must register for Florida sales tax with the Florida Department of Revenue. Florida imposes a 6% state sales tax plus any applicable discretionary county surtax. Register at https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx.
Annual Report Fee
Florida requires an annual report filing between January 1 and May 1 each year (Fla. Stat. § 605.0210). The $138.75 fee is mandatory but is not a tax—it's an administrative filing cost. Missing the deadline triggers a $400 late fee and potential administrative dissolution.
Key Takeaway
Florida's lack of franchise tax makes it attractive for LLC formation. However, do not confuse the absence of state franchise tax with zero tax obligations. Federal taxes and Florida sales tax still apply based on your business activities.
For detailed tax guidance specific to your LLC's operations, contact the Florida Department of Revenue at https://floridarevenue.com/ or consult a tax professional.
This is general information, not legal advice.