A Legal Structure
opening your business the legal structure will determine what
kind of taxes you will pay, who is liable financially and legally
and what forms to file.
A corporation is a separate legal entity that must be incorporated
with the Florida Department of State, Division of Corporation.
There are two types of corporation, the C-Corporation and the
S-Corporation. With a C-Corporation, the corporation rather than
the individual pays taxes. An S-Corporation allows up to 75 shareholders
to share income and expenses and to report them on their individual
a Limited Liability Company (LLC)?
Limited Liability Companies or LLC's are a hybrid form of business
that combines elements of partnership and corporation. LLC's may
elect whether to be taxed as partnerships or corporations. LLC's
with one member are considered sole proprietorship and with more
than one member are considered a corporation.
An unincorporated business allows two or more people to share
liability and provide capital. Business income is reported on
partners' individual tax returns.
a Sole Proprietorship?
Sole proprietorships are easy to set up and easy to disband. Profits
are taxed at the owner's individual federal tax rate, with the
amount reported on Schedule C or Schedule CZ. Sole proprietorship
owners have unlimited personal liability for any debts or other
obligations the business incurs.
Tax Topic 408, Sole Proprietorship.
Publication 541, Partnerships
for IRS form 1065
Publication 542, Corporations
and Your Business
federal corporate income taxes due?
It is due March 15 if the business's fiscal year corresponds to
the calendar year. C-Corporations pay income tax using federal
form 1120 or 1120A. A limited liability classified as a corporation
for federal tax purposes must file a federal corporate income
tax form. S-corps generally are not liable for federal income
tax but they must file federal form 1120S annually and pay tax
on certain investment income and capital gains. Returns are due
by the 15th of the third month after the close of the corporation's
Federal Employment Tax
This comprises Income, Social Security and Medicare and are due
monthly or semi weekly. Businesses that have employees must withhold
federal income tax, Medicare tax and Social Security tax from
employees' wages. In most cases the tax is paid semi weekly or
monthly. Small employers have an employment tax liability of $1,000
or less for the year may pay annually on January 31. File form
944 Employer's Annual Federal Tax Return.
Federal Unemployment Tax?
This is due January 31, April 30, July 31, and October 31. Floridians
are required to report wages and pay taxes to Federal Unemployment
Compensation if they paid $1,500.00 in wages within the calendar
quarter or employ one or more people for any portion of a day
in 20 different weeks during the calendar year.
Internal Revenue Service
Individual tax questions (800) 829-1040
Business tax questions (800) 829-4933
Forms and Publications (800) 829-3676
For more questions,
please contact us at:
(954) 572-3113 Ext. 206
Fax: (954) 572-3136