Small business

New Florida Small Business Owner: Tax Tips to Start Right

Updated October 8, 2026

Work in this order: choose a structure, get an EIN if you need one, register with the right Florida and local offices, then keep records and a tax calendar. Florida has no personal income tax, but a new business still carries federal, state and local duties.

The three layers of tax you are signing up for

New owners tend to think about one tax. A Florida business usually touches three layers.

Federal. Income tax on your profit and, if you work for yourself, self-employment tax at 15.3% for Social Security and Medicare. Hiring employees adds payroll duties.
State. No personal income tax. Sales and use tax applies if you sell taxable goods or services. Florida's corporate income tax is aimed at corporations, as our corporate tax guide explains.
Local. A yearly business tax receipt from your county or city.

Sorting your duties into these buckets makes the rest of this list easier, because every step below belongs to one of them.

Step one: pick a structure and learn how it is taxed

An LLC is a legal wrapper, and its tax treatment depends on who owns it. The IRS treats a one-owner LLC as part of its owner by default. The profit lands on Schedule C of your own return, just as it does for a sole proprietor, and the owner pays self-employment tax either way. The SBA likewise says an LLC's profits and losses can pass through to your personal income without corporate taxes.

Which structure fits is a legal and business question. We prepare returns and do not give legal advice, so ask an attorney about liability. Our first-year LLC guide covers what each setup files, and S corporation vs LLC explains an election some owners ask about later.

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Step two: get an EIN and a separate bank account

An EIN is the IRS number for your business, and it costs nothing. The IRS warns that you never have to pay a fee for one, and the SBA says the application is free. The IRS lists hiring employees, operating a corporation or partnership, and paying excise taxes among the reasons to have one. The SBA adds that you need one to open a business bank account and to apply for business licenses. Our EIN vs SSN guide breaks down the choice.

Open a separate bank account for the business, even as a sole proprietor. It does not change your tax. It gives you clean statements, and those become your records. Mixing business and personal spending is the habit that slows down more first-year returns than any other.

Step three: register in the right order

Check your location with the local zoning office. Local rules vary by city and county. Orlando's receipt checklist, for example, begins with a zoning check, and it comes before you spend on a lease or signs.
Register your name. If you will use a name other than your own legal name, Florida law says to register that fictitious name with the Division of Corporations before you start. An LLC also owes a yearly report to the same division, covered below.
Get your local business tax receipt. Counties and cities can each charge one, so you may need more than one. Receipts expire September 30 each year. The receipt guide covers Seminole and Orange counties.
Register for sales tax if it applies. If you will sell taxable goods or services, the Department of Revenue says to register as a dealer before you begin. See sales tax basics.

Step four: put the dates on a calendar

Missed dates are the costly part of a first year. Put these in your phone now.

January 15, 2027: the last federal estimated payment for 2026. Payments are expected if you will owe $1,000 or more at filing. The next ones fall on April 15, June 15 and September 15. A date on a weekend or legal holiday moves to the next business day.
January 31: Forms 1099-NEC for contractors and for the IRS. January 31, 2027 is a Sunday, so the weekend rule points to Monday, February 1. For payments made in 2026, the reporting threshold is $2,000, up from $600. See what changed for 1099-NEC.
April 15: your federal return. For tax year 2026, that is April 15, 2027.
May 1: the LLC annual report, filed with the Division of Corporations between January 1 and May 1. The first is due the year after the LLC was formed. See the annual report guide.
September 30: your local business tax receipt expires, so renew it.

Step five: keep records from day one

Keep every invoice, receipt and bank statement in one folder for each year, and log mileage as you drive. If you spend money before your first sale, keep those receipts too, since startup costs follow their own tax rules, covered in what startup costs count.

Current books also make estimated payments easy to size, because your profit figure is already there. See when to start bookkeeping, or look at our bookkeeping service, which starts at $300 a month with a free quote.

Who this fits and what to gather

This guide fits sole proprietors, one-owner LLC owners and new contractors who just opened or are about to. When you are ready to file, a self-employed return with us starts at $450, with the final fee set in a free quote plus e-file and processing fees. The small business page shows what we prepare.

Formation papers, name registration and your EIN letter
Your business tax receipt and any sales tax registration
Business bank statements and income records
Receipts for startup and operating costs
Any 1099 forms you received, and estimated payment confirmations

When the year ends, start your return with a preparer who works remotely.

FAQ

Do I need an LLC to start a business in Florida?

No. You can start as a sole proprietor. An LLC is a legal structure that mainly affects liability and state paperwork, not whether you owe tax. We prepare returns and do not give legal advice, so ask an attorney which setup fits you.

Do I have to make estimated tax payments in my first year?

The IRS generally expects them when you will owe $1,000 or more at filing, after withholding and credits. A new business with a profit often lands there. Our estimated tax guides explain how to size the payments.

Do I pay Florida income tax on my business profit?

No. Florida does not impose a personal income tax. Your business can still owe federal tax, sales tax if it sells taxable items, and a local business tax receipt.

When should I bring in a preparer for my first year?

Early is better, ideally before your first estimated payment, so the numbers are set from the start. A self-employed return starts at $450, with the final fee in a free quote, plus e-file and processing fees.

Sources

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General information, not tax advice for your specific situation. Rules can change, and a human preparer reviews your facts before any return is filed. Zero Fuss Taxes is a PTIN-holding tax preparation firm. We are not a CPA firm, enrolled agents or attorneys.

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Zero Fuss Taxes is a PTIN-holding tax preparation firm. We are not a CPA firm, enrolled agents or attorneys.