When filing business taxes for the first time in Florida you need to understand nexus requirements and consider using a tax filing service if you don’t have time to learn the tax laws.
This article will discuss six tips for filing business taxes in Florida for the first time.
Check your company’s eligibility to file
If your business isn’t registered to do business in Florida then you don’t have to file a return with the state.
Businesses required to register include those that have a physical presence such as an office, warehouse, or retail location; businesses earning over $50,000 per year (recent changes increased this amount); and anyone who does work for Florida residents.
Determine if you need to register with the Department of Revenue
Your business may need to register with the Department of Revenue if you are established in Florida and you earn more than $50,000 per year.
Some businesses are not required to register with the Department of Revenue if they are only selling products online. These businesses include those registered as a limited liability corporation or limited partnership and sole proprietorships with no physical presence in Florida.
Gather all necessary paperwork, including W-9s and 1099s
If you register your business with the state of Florida then make sure that you have everything needed for filing a business return.
These items might include:
- Sales Tax IDs from vendors who should be providing you with 1099
- Purchase invoices for inventory you purchased from out-of-state vendors
- W-9 forms from your employees, including independent contractors
- 1099 forms if you paid an independent contractor more than $600 last year.
Fill out a business tax return online or by mail
If you have a physical property inside Florida then you may need to file electronically. If you don’t have a physical property inside Florida then you can file a paper return by mail. Hire a tax preparation service to do this for you if it’s too complicated.
Pay any taxes due in full or through an installment agreement
After filing your business return, pay any taxes that are owed directly from your checking account or with a credit card.
You can also create a payment plan by visiting the website of your local Department of Revenue office or calling them directly if you need to pay taxes with an installment agreement that is either short-term or long-term.
If you are audited at a future time in Florida, then you must have all tax returns filed with the state for the past three years.
You must also have any documents related to your business such as receipts, invoices, and bank statements if they were not included with your original return.
The six tips for filing business taxes in Florida include: checking if your company is eligible to file, determining if you need to register with the Florida Department of Revenue, gathering all necessary paperwork including W-9s and 1099s, filling out a business tax return online, or by mail, paying any taxes due in full or through an installment agreement, and keeping records for at least three years after filing the return, just in case there is an audit that needs to be done later on down the line.
The reason this is important is that if you don’t follow these six tips then it could lead to problems with your business tax return and lead to tax penalties and interest.