Annual Tax Filing for Florida LLC Owners

Florida is one of the top US States for Entrepreneurs, Investors, Creators, eCommerce sellers and Founders from other countries. Since Florida has no state personal income tax, a low regulatory burden, and a booming ecosystem for business, the state of Florida receives thousands of LLC formations annually.

But LLC formation is just the beginning.

In order for your Florida LLC to remain active, compliant, and in good standing, there are a number of other LLC requirements you must comply with on an annual basis, at the state level (Florida) and federal level (IRS). If you fall short on meeting the requirements, you may face:

This guide covers in detail for every Florida LLC owner (foreign, US and other) the tax and other compliance requirements in the state where the LLC is formed. Because the owner is a foreign national, there are some unique requirements and a difference in the compliance rules we will focus on the Foreign owner of the LLC formation.

1. Understanding How Florida Taxes LLCs: A Complete Overview

Before diving into the annual filing requirements, it’s important to understand how LLCs are taxed in Florida, because there is often confusion among new entrepreneurs.

When it comes to income tax, Florida state tax for individuals is non-existent. This is a great perk for owners of LLCs as the income that is passed through the LLC is also non state income tax.

This standpoint fully explains why Florida is a perfect place to be for a digital business. This stands true for eCommerce sellers, consultants, content creators, and entrepreneurs from all over the world.

Only certain LLCs must pay Florida Corporate Income Tax, specifically:

If your LLC elects to be taxed as a C Corporation, it is treated as a corporation for tax purposes.

Tax Rate: Currently at a flat 5.5% corporate income tax

If your LLC does file IRS Form 1120, you also must file Florida Form F-1120, unless you fall under the exempt bill.

A foreign founder with a software company that has a C-Corp has to consider the following tax obligations for their Florida LLC:

Most entrepreneurs located outside of the United States do not choose the C-Corp tax option because it is unnecessary unless there is a need for a specific startup structure or for the investors involved.

Every Florida LLC MUST file an annual report each year regardless of:

It is to update changes made to the LLC with the Florida Secretary of State:

Florida utilizes the annual report for the purpose of confirming the LLC is active and maintains a position of “good standing” with the company.

What Happens; Penalty For Not Filing Reports

Penalty for Missing the Deadline

• $400 late fee — automatically added
  
• No exceptions or waivers
• If not filed, the LLC is dissolved in September

If you wish to reinstate the LLC, you will need to pay:

Bizstartz assists clients with the filing of reinstatement and the corrections of non-compliance issues.

Federal filing requirements are based on several criteria, such as:

This will be explained in detail below.

5. Florida LLC Federal Tax Filing: U.S. Owner vs. Non-U.S. Owner

Case A: Florida LLC Owned by U.S. Residents

1. Single-Member LLC (U.S. Owner)

Default IRS classification: Disregarded Entity

Required Filing:

Form	Description
Form 1040 + Schedule C	Reports business income and deductions
Schedule SE	Self-employment tax (if applicable)

Common Situations:

• Freelancers
  
• Consultants
  
• Digital product sellers
  
• Amazon/Etsy sellers
  
• Online service providers
  

Why this is simple:

The LLC does not file a separate return. The owner files everything in their personal tax return.

2. Multi-Member LLC (U.S. Owners)

Default classification: Partnership

Required Federal Filings:

Form	Description
Form 1065	Partnership tax return
K-1 for each member	Shows each member’s share of income

This filing is ALWAYS required even if your LLC earned $0.

3. LLC Electing S-Corporation Taxation

Many U.S. owners choose S-Corp status for reducing self-employment taxes.

Required Filings:

• Form 1120-S
  
• K-1 for each shareholder
  
• Quarterly payroll filings if taking salary
  

4. LLC Electing C-Corporation Taxation

Must file:

• Form 1120
  
• Must also file Florida Form F-1120 (corporate tax)
  

6. Florida LLC Federal Tax Filing for NON-U.S. OWNERS (Detailed Guide)

This is the most important section for Bizstartz clients since the majority are non-U.S. entrepreneurs.

If you are a non-U.S. founder, your Florida LLC is subject to special IRS rules.

Let’s break it down.

A. Foreign-Owned Single-Member LLC (MOST COMMON STRUCTURE)

If you are a non-U.S. person and you form a single-member LLC in Florida:

The IRS treats your company as a foreign-owned disregarded entity (FDE).

Required IRS Filings:

Form	Purpose
Form 5472	Discloses foreign ownership & transactions
Pro forma Form 1120	Filed with Form 5472
FBAR (if applicable)	If the owner has foreign accounts >$10,000

Deadline

• April 15
  
• Can be extended to October 15 using Form 7004
  

Penalty

• $25,000 minimum for failing to file
  
• Additional $25,000 for continued non-filing
  

Examples of “reportable transactions”:

• Owner invested money into the LLC
  
• LLC paid the owner
  
• Owner loaned money to the LLC
  
• LLC paid expenses on behalf of owner
  

Even zero-revenue LLCs must file Form 5472.

Most non-U.S. business founders mistakenly assume they don’t need to file because the LLC made no money, this is incorrect and risky.

Bizstartz handles Form 5472 filing for foreign owners.

B. Foreign-Owned Multi-Member Florida LLC

If your LLC has more than one non-U.S. owner, it is treated as a foreign partnership unless another election is made.

Required Filings:

Form	Purpose
Form 1065	Partnership tax return
K-1 for each member	Allocates income
Form 8804/8805	Withholding tax on foreign partners
ITIN application	Required for foreign owners

Withholding Tax Rule:

Foreign partners are subject to withholding on effectively connected income (ECI) — typically 21% or 37% depending on circumstances.

If LLC earned U.S.-sourced income, this filing is mandatory.

C. Foreign-Owned LLC Electing C-Corporation

If a foreign founder elects C-Corp taxation:

Required filings:

• Form 1120
  
• Florida Form F-1120
  
• 30% withholding on U.S. dividends
  

This structure is commonly used for:

• Venture-backed startups
  
• Businesses planning to raise equity
  
• Delaware flip structures
  

But rarely recommended for eCommerce or service businesses unless strategic.

7. Sales Tax Compliance for Florida LLCs (Complete Guide)

Florida imposes state sales tax if your business sells:

• Physical products delivered within Florida
  
• Some digital goods
  
• Certain services
  

State Tax Rate

• 6% base rate
  
• Local counties may add up to 2.5%

Who Needs a Florida Sales Tax Permit?

Anyone who:

• Makes sales of products in Florida.
• Keeps (or rents) a warehouse in Florida and holds inventory.
• Uses a fulfillment center in Florida.
• Has a physical business office in Florida.

Economic nexus

You have economic nexus with Florida if your business exceeds $100,000 is sales in Florida in the previous 12 months. You will then be required to collect, report, and remit sales tax.

Sales Tax Filing Compliance

Florida will assign a filing frequency of either:

• Monthly
• Quarterly
• Annually (but tax is still due every reporting period)

Bizstartz helps clients register and manage sales tax filings.

8. Employer & Payroll Filing Requirements (If Your LLC Hires Workers)

If your Florida LLC has employees, the compliance burden increases:

Required Filings:

• EIN
  
• Form W-4 for employees
  
• Payroll tax deposits
  
• Quarterly Form 941
  
• Annual Form 940 (Federal unemployment)
  
• W-2 issuance
  
• State reemployment tax filing (Florida RT-6)
  

Florida Reemployment Tax (State Unemployment Tax)

• Rate varies from 0.1% to 5.4%
  
• Paid quarterly
  

Required even for small businesses with 1 employee

9. Required Reports (Beneficial Ownership Reporting)

Mandatory for All U.S. and Non-U.S. Florida LLC Owners

Starting January 1, 2024:

• All Florida LLCs must file a Beneficial Ownership Information (BOI) Report with FinCEN.
  

What must be reported:

• Owner name
  
• Passport or ID
  
• Date of birth
  
• Residential address
  
• Company details
  
• Control persons
  

Deadline

• For LLCs formed before 2024: January 1, 2025
  
• For LLCs formed in 2024 and later: 30 days from formation
  

Penalties

• $500 per day up to $10,000
  
• Criminal charges for intentional violations
  

Bizstartz provides BOI filing for all clients.

10. Full Compliance Checklist for Florida LLC Owners

Annual Requirements:

Requirement	Mandatory?	Deadline
Florida Annual Report	✔ Yes	May 1
IRS Federal Tax Return	✔ Yes	March 15 or April 15
Form 5472 (foreign-owned)	✔ Yes	April 15
Form 1065 (multi-member)	✔ Yes	March 15
BOI Report	✔ Yes	30 days from formation
Sales Tax Filing	If applicable	Monthly/Quarterly
Payroll Filings	If applicable	Quarterly

11. Penalties for Non-Compliance in Florida

Action Not Completed	Penalty
Late Annual Report	$400
Failure to file 5472	$25,000+
Failure to file 1065	$220 per partner per month
Failure to file 1120	Interest + penalties
BOI violations	$10,000 + possible jail
Failure to collect sales tax	Heavy fines + business suspension
Payroll non-compliance	IRS penalties + interest

Bizstartz manages compliance, tax, and filing for both U.S. and non-U.S. founders:

We ensure compliance, whether as a freelancer, SaaS founder, eCommerce seller, or a global entrepreneur.

Despite the fact that Florida is  among the most business-compliant states in the U.S., Florida state compliance, tax obligations, and IRS requirements are still highly complex and demand uncompromising focus. For both U.S. and non-U.S. founders operating their business remotely, it is essential that the compliance requirements be met.

Particularly for foreign-owned LLCs, the missing of compliance regulations and deadlines can cost significant penalties (in $1,000s).

Letting us handle your business compliance requirements during annual filings will allow you to concentrate on your business growth. You will have the peace of mind knowing your filings are being processed correctly.