Florida taxes, if any

Posted by Kurt Ullman on October 12, 2009, 12:40 pm

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I have a Sub S corp that is based in Indiana, domiciled in Indiana,
has an Indiana checking account, etc that basically is my freelance
writing business. Since I can do that anywhere, my wife and I are
pondering the possibility of buying a condo in FL, and working out of
there about 5 months out of the year.
As long as we keep everything based in Indiana (both corporately
and myself through residence, auto registration, etc.) would there be
any FL state tax consequences or can I just continue on my merry way as
an Indiana company?

--
An old friend once said "You don't live on the edge,
you're taking up way too much space."
Scott Kirby "Lucky Enough"

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Posted by removeps-groups@yahoo.com on October 12, 2009, 2:59 pm

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> I have a Sub S corp that is based in Indiana, domiciled in Indiana,

> has an Indiana checking account, etc that basically is my freelance

> writing business. Since I can do that anywhere, my wife and I are

> pondering the possibility of buying a condo in FL, and working out of

> there about 5 months out of the year.

> As long as we keep everything based in Indiana (both corporately

> and myself through residence, auto registration, etc.) would there be

> any FL state tax consequences or can I just continue on my merry way as

> an Indiana company?

http://dor.myflorida.com/dor/taxes/corporate.html

S Corporations and tax-exempt organizations are generally not required
to file a Florida corporate income tax return if they do not have
federal taxable income. If they have federal taxable income, however,
they are then required to file a Florida corporate income tax return
and pay any tax due.

The instructions at http://dor.myflorida.com/dor/forms/2009/f1120n.pdf
say the corporation has to file a F-1120 if:

S corporations that pay federal income tax on Line 22c of federal Form
1120S

Line 22c are federal taxes on C corps that changed into S corps:

22a Excess net passive income or LIFO recapture tax (see instructions)
22b Tax from Schedule D (Form 1120S)

I'm guessing 22c is zero for you, and if so there's no need to file a
F-1120.

If line 22c was not zero then you do have to file a F-1120 because the
instructions say:

All corporations (including tax-exempt organizations) doing business,
earning income, or existing in Florida.

Also, you have to pay the annual report fee by May/31, which for
Florida looks to be $150.

In addition, you have to pay the Indiana annual report fee, which
you've probably been doing anyway, and it looks to be $21.

And then you have multi-state registered agent fees.

Why is this not a Schedule C business? As a bonus, only 92.75% or
something like that of your income is subject to SE tax. If you need
liability protection, maybe liability insurance is the better answer.
Not sure, just things to think about.

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<< The foregoing was not intended or written to be used, >>
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Posted by Doug on October 12, 2009, 11:37 pm

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Kurt Ullman wrote:

> --

An old friend once said "You don't live on the edge,
you're taking up way too much space."
Scott Kirby "Lucky Enough"

You're also missing the first word: If.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
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<< are at www.asktax.org. >>
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Posted by Mark Bole on October 13, 2009, 10:39 am

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Kurt Ullman wrote:

> I have a Sub S corp that is based in Indiana, domiciled in Indiana,

> has an Indiana checking account, etc that basically is my freelance

> writing business. Since I can do that anywhere, my wife and I are

> pondering the possibility of buying a condo in FL, and working out of

> there about 5 months out of the year.

> As long as we keep everything based in Indiana (both corporately

> and myself through residence, auto registration, etc.) would there be

> any FL state tax consequences or can I just continue on my merry way as

> an Indiana company?

Although Florida has no personal income tax, as an employee you may be
subject to Florida payroll taxes, such as unemployment.

-Mark Bole

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Kurt Ullman on October 13, 2009, 11:53 am

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> Kurt Ullman wrote:

> > I have a Sub S corp that is based in Indiana, domiciled in Indiana,

> > has an Indiana checking account, etc that basically is my freelance

> > writing business. Since I can do that anywhere, my wife and I are

> > pondering the possibility of buying a condo in FL, and working out of

> > there about 5 months out of the year.

> > As long as we keep everything based in Indiana (both corporately

> > and myself through residence, auto registration, etc.) would there be

> > any FL state tax consequences or can I just continue on my merry way as

> > an Indiana company?

> >

> Although Florida has no personal income tax, as an employee you may be

> subject to Florida payroll taxes, such as unemployment.

The company AND me will still be domiciled for the most part in
Indiana. That is where it is registered, that is the mailing address,
etc. etc.
I am just asking if I incur FL taxes for the business I do while
there merely because I happen to be in FL for awhile.

--
An old friend once said "You don't live on the edge,
you're taking up way too much space."
Scott Kirby "Lucky Enough"

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>