Operating a business in Florida requires a solid understanding of the state's tax framework. The base state sales tax rate is 6%, with local jurisdictions adding up to 2.5%. LLC formation costs $125 in 2026.
Economic Nexus in Florida
Remote sellers must collect Florida sales tax if they exceed $100,000 in annual sales within the state. This threshold has been in effect since 2021-07-01. Marketplace facilitators like Amazon and Etsy are also required to collect and remit tax on behalf of third-party sellers. The Florida Department of Revenue enforces these provisions and provides registration guidance at https://floridarevenue.com.
LLC Formation in Florida (2026)
Forming an LLC in Florida costs $125 for the initial filing. An annual franchise tax of $138 is required to maintain good standing. The annual report fee is $138. Florida has no state income tax, making it attractive for LLC owners seeking tax efficiency.
The process involves filing Articles of Organization with the Secretary of State, obtaining a federal EIN, and registering for applicable state tax accounts. You will also need a sales tax permit from the Florida Department of Revenue.
Key Tax Rules
• Florida has a 6% state sales tax with discretionary surtaxes up to 2.5%.
• No state income tax for individuals or LLCs taxed as pass-through entities.
• Commercial rent is subject to sales tax (currently 2% state + local surtax).
• Economic nexus threshold: $100,000 in sales.
Sales Tax Exemptions
The following categories are generally exempt from sales tax in Florida: groceries, prescription medications, certain agricultural equipment. Businesses should maintain proper documentation for exempt transactions.