Comparing Personal Taxes vs. Business Taxes in Florida

Taxes can be a daunting thing to do.

 

There are so many rules and types of taxes to pay and file for that at times it can seem confusing.

 

As a business owner you not only have your personal federal taxes but also the taxes of the business to worry about.

 

If you are new to the world of taxes, you may not know there is a difference between personal tax Hialeah and business taxes.

 

One of the key differences in Florida is that only businesses pay state income taxes, residents do not have to.

 

Read on to learn the difference between personal and business tax Hialeah, why you may still need help doing your personal taxes in Florida, and how to find the best person to help you.

 

 

Business vs. personal taxes — federal and state

 

First and foremost, when thinking about state taxes in Florida the major difference between personal and business is that there is no personal income tax.

 

There is, however, a corporate, business, and sales tax.

 

Florida is one of nine states in America that does not have an individual income tax.

 

There are also no estate or inheritance taxes in Florida.

 

When it comes to business taxes, there are many different pay brackets.

 

The only businesses in Florida that pay income taxes to the state are corporations.

 

Smaller businesses that run as S corporations, unincorporated LLCs, partnerships, and sole proprietorship are exempt from state income taxes.

 

Smaller businesses and residents of Florida only need to worry about federal, sales, and property taxes.

 

This does not mean you do not have to pay federal taxes, though, unless you are an S corporation.

 

 

Why do I still need to file if I don’t pay state taxes?

 

Filing taxes is something every grown person in America does every year, whether they are filing personal or business taxes.

 

For most, this includes filing with the state and federal government.

 

There are still plenty of reasons to file taxes.

 

For instance, in Florida you may need to file a tangible property tax return if you have houses that you rent out, are a realtor, or have equipment that you use for your business.

 

When it comes to filing personal or business taxes, there are some key differences in the way they are handled.

 

Businesses have to worry about more deductions than the average person would on their personal return.

 

Likewise, businesses typically have more than one tax deadline a year.

 

In short, you still need to file taxes regardless of whether you are a large corporation paying state taxes, a small business, or an individual only paying federal taxes.

 

Furthermore, with the lack of state income taxes in Florida it is best to hire someone to help you file your taxes to avoid any confusion or issues.

 

 

Finding someone to help do your taxes

 

When you are looking for someone to help you with your taxes in Florida, do your research to find the best person.

 

Ask family, friends, neighbors, or colleagues who they would suggest.

 

Look online for companies that specialize in doing taxes or bookkeeping in Florida.

 

Determine if you need to file business or personal tax Hialeah.

 

If you are filing for a business, ensure the company is well-versed in all matters revolving around business tax Hialeah.

 

Look at the reviews from previous clients.

 

Consider all the special needs you may have like exemptions, deductions, or tangible property taxes and ensure they are knowledgeable in these areas.

 

Check out how much they charge to help you.

 

In conclusion, the main difference between business and personal taxes is all in what you pay and how you file.

 

Furthermore, with the complexities of taxes in Florida it is always better to hire a professional to do your taxes.