Florida Corporate Tax - Guide for international expansion to the US

Are you planning to do business in Florida? Then it’s essential to understand how corporate income tax (CIT) works and what it means for your company. In this guide, we’ll break down everything you need to know about corporate taxes in Florida, from setting up your business to staying compliant. Whether you’re launching a new venture or expanding your business, understanding your tax obligations is key to running a successful operation.

And if you're looking for smart ways to save money and manage international payments, we’ll also show you how a Wise Business account can help simplify cross-border transactions and keep your finances running smoothly.

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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Florida Corporate tax rate in 2025

The Florida corporate income tax rate has varied in recent years. For tax years beginning on or after January 1, 2022, the rate is 5.5% of net income.¹ Prior to this, for tax years beginning on or after January 1, 2021 and before January 1, 2022, the rate was 3.535%. For tax years beginning on or after January 1, 2019 and before January 1, 2021, the rate was 4.458%.¹ The corporate income tax is levied on a company’s net income.

Florida does not have an individual income tax², and the corporate tax rate is considered relatively low compared to the average top rate among states that impose a corporate income tax, which is around 6.5%.³

Companies subject to Florida corporate income tax include C corporations and LLCs classified as corporations for Florida and federal income tax purposes.⁴ S-Corporations and other pass-through entities are generally not subject to corporate income tax at the state level.⁴

How to pay corporate tax in Florida

For most companies in Florida, corporate income tax can be paid electronically through the Florida Department of Revenue's File and Pay webpage. You can select "Tax/Fee/Remittance Payment Only" to pay the tax due on Forms F-1120 and F-1120A, as well as the tentative tax due on Form F-7004.⁵

Florida corporations are required to file a Florida Corporate Income/Franchise Tax Return (Form F-1120) with the FL Department of Revenue.⁵ The tax due date depends on your corporation's tax year. Generally, corporate tax in Florida is due on or before the first day of the fourth month following the close of your corporate tax year.⁶ However, for tax years that do not end June 30, the due date is on or before the first day of the fifth month following the close of the tax year. For example, if your tax year ends December 31, your corporate income tax return is due May 1. If your tax year ends June 30, the due date is October 1.⁷

If your Florida corporation owes more than $2,500 in income tax annually, you are required to make estimated tax payments using the Declaration/Installment of Florida Estimated Income/Franchise Tax (Form F-1120ES).⁸ If you underpay your estimated tax, you may be charged a penalty.⁸

Let's say your company has a turnover of $1.5 million and operates with a profit margin of 10%, giving it a taxable profit of $150,000. At Florida's standard corporation tax rate of 5.5%, the tax owed would be:

$150,000 × 5.5% = $8,250

When expanding your business to the US, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to expand internationally with local USD account details. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Florida

Some crucial steps to keep your company compliant with Florida tax regulations are⁹:

• Register for taxes: Register with the IRS and the Florida Department of State to obtain a corporate tax ID after incorporation. This ensures your business can legally operate and pay the required taxes, including corporate income tax and franchise tax. If you’re unsure about obligations or when to pay corporate tax, contacting a corporate tax helpline or seeking corporate tax advice can help.
• Appoint a registered agent: Florida law requires every business to have a registered agent based in the state. The agent accepts legal notices and ensures official compliance documents are received on time.
• Annual filing: All companies must file a yearly report through Sunbiz.org, the official website of the Florida Division of Corporations. Reports update key information such as company name, address, and members. The filing window runs from January 1 to May 1. Reports submitted after May 1 incur a $400 late fee. If not filed by the third Friday of September, the company may be administratively dissolved.
• Corporate income tax: Businesses must also file a yearly corporate tax return. Florida’s corporate income tax rate is 5.5%¹⁰. Staying on top of filing dates and working with a professional ensures compliance and avoids penalties.

International Expansion to Florida

Businesses aiming for international growth will find Florida a gateway to new opportunities and markets. Its favourable tax system, robust infrastructure, and strong economy make it one of the most attractive U.S. states for entrepreneurs and global companies.

One of the biggest advantages is Florida’s low tax structure. The state imposes no personal income tax, while the Florida corporate tax rate is 5.5%. Moreover, the state sales tax is 6%, with local rates bringing the average combined rate to about 7.02%.¹¹

According to the Tax Foundation’s 2024 State Business Tax Climate Index, Florida ranks 4th overall in tax competitiveness¹¹. For businesses navigating international corporate tax law, Florida is an appealing base for efficient corporate income tax filing and growth.

Florida also benefits from world-class infrastructure. It has more than 130 public-use airports, 20 commercial airports, and 15 deep-water seaports, generating nearly $118 billion annually for the economy. This extensive network ensures smooth supply chains and market access, supported by corporate tax services and business-friendly policies¹².

Economically, Florida has the fourth-largest state economy in the U.S. and the third-largest workforce, with over 11 million workers. The state consistently ranks #1 in higher education, creating a pipeline of skilled talent for industries seeking professionals in fields like corporate tax jobs or other specialised roles¹³. With steady growth, 3.5% in Q1 2023, above the U.S. average, Florida provides both stability and opportunity for expanding companies¹¹.

The roadmap for setting up a business in Florida is:

1. Start with market research and a business plan.
2. Select your business name, location, and entity type.
3. Appoint a registered agent.
4. Register with the Florida Division of Corporations.
5. Apply for an EIN with the IRS.
6. Secure the required licenses and permits.
7. Open a business bank account.

For a complete walkthrough of business relocation to Florida, refer to Moving a Business to Florida: Benefits, Costs, and Legal Steps.

Incorporation of Business in Florida

Register with the Florida Division of Corporations to incorporate a business in Florida. The process requires preparation and compliance with state rules, particularly for taxation and entity selection. Below are the key requirements⁹:

• Company name: A unique name that follows Florida naming guidelines.
• Entity type: The legal structure you choose (explained below).
• Registered office and agent: A Florida-based office address and a registered agent to receive official documents on behalf of your company.
• Directors or members: Individuals appointed to manage the company.
• Employer Identification Number (EIN): Issued by the IRS to handle tax filings.
• Licenses and permits: Specific to your industry or service type.

Compared with many U.S. states, the corporate income tax of Florida is considered competitive, but companies must comply with filing requirements to avoid a corporate tax penalty.

Engaging a corporate tax consultant or hiring a corporate tax associate can help ensure accurate filings and efficient use of corporate tax allowance. Florida presents a balanced option for firms evaluating corporate tax by country between countries with zero corporate tax and jurisdictions with higher rates.

Florida recognises several entity types, each with different liability, taxation, and compliance implications. These include¹⁴:

• Sole Proprietorship: The simplest form of business, owned and operated by one individual. It does not create a separate legal entity, so the owner is personally liable for debts.
• Partnership: Owned by two or more people, with profits and liabilities shared. Partnerships are relatively easy to set up, but do not provide liability protection.
• Limited Liability Company (LLC): A flexible and popular structure in Florida. LLCs provide liability protection for owners (“members”) and allow profits to pass through to personal tax returns.
• Corporation (C-Corp or S-Corp): A separate legal entity that protects owners (shareholders) from liability. C-Corps are taxed at the corporate level. S-Corps, if eligible, pass profits and losses through to shareholders’ returns.

International corporate tax best practices

Here are some of the best strategies to ensure compliance with local tax laws, save more money, and reduce tax burdens when operating internationally:

• Stay compliant with local and international tax laws by completing the legal registration process in every country where your business operates. File all required tax returns on time to avoid penalties, and ensure you stay up to date with local tax laws. Companies should also understand and adhere to global standards set by organizations like the Organisation for Economic Co-operation and Development (OECD), including frameworks like Base Erosion and Profit Shifting (BEPS) and Pillar Two Global Minimum Tax, to ensure transparency and prevent tax avoidance.
• Leverage double taxation treaties (DTTs) to avoid being taxed on the same income twice. Understanding these treaties between the countries in which your business operates can potentially relieve your tax burden.
• Maintain up-to-date and transparent financial records. This helps companies prepare accurate tax returns, reducing the risk of errors that could lead to penalties and simplifying the process during financial audits.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Florida efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.
• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.
• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.
• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.
• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Florida

Who is liable for corporate tax in Florida?

Generally, any corporation (like a C corporation) that conducts business, earns income, or exists within Florida is required to file a Florida corporate income tax return. This also applies to other entities, such as LLCs, that have elected to be taxed as a C corporation for federal income tax purposes.

Are there any tax incentives for businesses in Florida?

Yes, Florida offers a variety of tax credits and incentives to encourage business growth, investment, and job creation. These can include credits for research and development, investment in certain industries, creating jobs in targeted urban areas, and capital investment. It’s worth investigating these to see if your business qualifies.

What is the tax treatment of dividends in Florida?

Florida does not have a state personal income tax, so individuals do not pay state tax on dividend income. For corporations, the tax treatment of dividends received from other corporations depends on various factors, including federal tax law and Florida's specific rules on what constitutes taxable income.

What is the process for registering for corporate tax in Florida?

To register for corporate tax, a business must first register with the Florida Department of State, Division of Corporations (often known as Sunbiz). After that, you must register with the Florida Department of Revenue to receive a Florida corporate income tax account number and file returns.

What are the common pitfalls to avoid regarding corporate tax in Florida?

Common mistakes include failing to file on time, which incurs significant penalties, and incorrectly calculating the portion of your business income that is attributable to Florida (apportionment). Another pitfall is misunderstanding "nexus", which determines if your business has a sufficient presence in the state to be subject to its taxes. Seeking professional advice can help avoid these issues.

Sources used in this article:

Sources last checked 21/08/2025