Benefits of LLC in Florida
- Florida combines liability protection with partnership tax benefits.
- LLCs offer legal and tax prospects plus easy, affordable setup if you follow state rules.
- Florida is business-friendly with a top 5 favorable tax climate.
Taxation of LLCs in Florida
LLCs in Florida are taxed as pass-through entities by default, meaning they don’t have to pay corporate income tax. Profits and losses are passed on to the members, who pay individual taxes on their share. Luckily, Florida has no individual income tax, so LLC members only need to pay the federal self-employment tax of 15.3%. Florida has a 6% sales tax, and some municipalities impose additional local taxes.
Considerations for Forming an LLC
- Best state depends on your circumstances, industry and goals.
- Evaluate all business structure options before deciding.
- Domestic LLCs, formed and registered in one state, are distinguished from foreign LLCs doing business outside their state. Laws differ so research before forming an LLC out-of-state.