Florida Corporate Income Tax
Questions & Answers

 Who Must File?

Corporations that conduct business, earn or receive income in Florida, including out-of-state corporations, must file a Florida corporate income tax return. The return must be filed, even if no tax is due.

Corporations located in other states that are partners in a partnership or members of a joint venture doing business in Florida must file Florida Form F-1120 (Corporate Income/Franchise and Emergency Excise Tax Return). A Florida partnership is required to file a Florida Partnership Information Return (Form F-1065) if a corporation is one of the partners.

Limited liability companies classified as a corporation for federal tax purposes must file a Florida corporate income tax return. Corporations with ownership in a limited liability company treated as a partnership for federal income tax purposes are subject to the Florida Income Tax Code and must file a Form F-1120. Limited liability companies that are disregarded for federal tax purposes are not required to file a separate Florida corporate income tax return. However, their income is not exempt from tax. If a limited liability company has a corporate partner, it is required to file a Florida Form F-1065.

S Corporations, Tax-Exempt Organizations and Condominium and Homeowner Associations are generally not required to file a Florida corporate income tax return once they have filed their initial year return if they do not have federal taxable income. If they have federal taxable income, however, they are then required to file a Florida corporate income tax return and pay any tax due. Tax-exempt organizations must attach a copy of their federal "determination letter" to the F-1120 for the first year they qualify as an exempt organization.

Tax Base and Rate

Florida corporate income tax liability is computed using federal taxable income, modified by certain Florida adjustments, to determine adjusted federal income. A corporation doing business within and without Florida may apportion its total income. Adjusted federal income is apportioned to Florida using a three-factor formula. The formula is a weighted average, designating 25 percent each to factors for property and payroll, and 50 percent to sales. Nonbusiness income allocated to Florida is added to the Florida portion of adjusted federal income. An exemption of up to $5,000 is subtracted to arrive at Florida net income. Tax is computed by multiplying Florida net income by 5.5 percent.

Florida Alternative Minimum Tax (AMT)

Florida alternative minimum tax must be computed if federal AMT was paid for the same tax year. Florida AMT is computed by multiplying Florida alternative minimum taxable income by 3.3 percent. The tax due is whichever amount is greater: the regular Florida corporate income tax or the Florida AMT. In subsequent years, a credit is allowed for corporations that paid AMT.

Filing a Corporate Short Form (F-1120A)

Corporations that have zero tax due or owe less than $2,500 in tax may file Form F-1120A if all of the following criteria are met:

• it has Florida net income of $45,000 or less;
• it conducts 100 percent of its business in Florida (does not apportion income);
• it does not report any additions to and/or subtractions from federal taxable income other than a net operating loss deduction and/or state income taxes, if any;
• it has no Florida Emergency Excise Tax (EET) liability. Corporations that only have assets placed into service after January 1, 1987, are not subject to Florida EET;
• it does not file a consolidated corporate return. Qualified subchapter S subsidiaries must file form F.1120;
• it claims no tax credits other than tentative (extension of time) payments or estimated payments, if any; and
• it is not required to pay Federal Alternative Minimum Tax.

Estimated Tax

If a corporation owes more than $2,500 in Florida corporate income tax annually, it must make estimated tax payments on Form F-1120ES. Four equal payments are usually required.

When The Corporate Income Tax Return is Due

The Florida corporate income tax return is due on or before the first day of the fourth month following the tax year, or the fifteenth day following the due date of the related federal return, whichever is later. Any balance of tax owed must be paid in full by the due date of the Florida return. The Florida Partnership Information Return (Form F-1065) is due on or before the first day of the fifth month following the close of the tax year. If tax is not paid on time, penalties and interest will be assessed. If an extension is requested, an Application for Extension (Form F-7004 or F-7004A) must be filed with full payment of tax by the original due date of the Florida return. Extensions are valid for six months and only one extension is allowed.

Yes, just contact us by e-mail or phone. We can help you with your questions and preparation of all your business returns.

    For more information:
        Florida Corporate Income Tax - A Summary

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