Services · Small Business Taxes
Small business tax planning in Sarasota
Smart structure. Lower taxes. More growth. Sarasota’s small business owners face their own tax challenges — from entity selection to payroll taxes to self-employment deductions. We help you choose the right structure, make the most of business deductions and stay compliant, so you can focus on running your business.
- Year-round planning, not just April
- Based in Sarasota
- Reply within one business day
The short answer
How is a small business taxed?
That depends on its structure. A single-member LLC is taxed like a sole proprietorship by default, with profit subject to income tax and self-employment tax. Partnerships and S corporations pass income through to the owners’ returns. C corporations pay their own federal tax, and in Florida also pay state corporate income tax.
At a glance
- Entity selection (LLC, S-Corp, C-Corp)
- Quarterly estimated tax planning
- Business deduction maximization
- Payroll tax compliance
- Exit and succession tax planning
What it covers
What small business taxes includes
Entity selection (LLC, S-Corp, C-Corp)
Choosing and revisiting how your business is taxed as it grows.
Quarterly estimated tax planning
Setting payments that keep you current and avoid underpayment penalties.
Business deduction maximization
Vehicles, home office, equipment, retirement plans and the records that support them.
Payroll tax compliance
Federal payroll filings and Florida reemployment tax done right and on time.
Exit and succession tax planning
Planning a sale or handoff years ahead, not weeks.
Florida business taxes
Sales and use tax, and Florida corporate income tax for C corporations.
Is an S corporation right for you?
Many owners hear that an S corporation election saves tax. It can: an S corporation owner who works in the business pays themselves a reasonable salary, which carries payroll taxes, and can take remaining profit as distributions that don’t carry self-employment tax.
It also adds payroll, a separate return and stricter bookkeeping, and “reasonable salary” has to stand up to IRS scrutiny. Whether the election helps depends on your profit, your industry and what you’d pay yourself. We run the comparison with your real numbers before you file the election (Form 2553), and revisit it as the business changes.
It also adds payroll, a separate return and stricter bookkeeping, and “reasonable salary” has to stand up to IRS scrutiny. Whether the election helps depends on your profit, your industry and what you’d pay yourself. We run the comparison with your real numbers before you file the election (Form 2553), and revisit it as the business changes.
At a glance
Federal estimated tax deadlines
April 15
Payment 1 for income earned January–March.
June 15
Payment 2 for April–May.
Sept 15
Payment 3 for June–August.
Jan 15
Payment 4 for September–December.
Quarterly estimates without surprises
If you’re self-employed or own a pass-through business, no one withholds tax for you. Federal estimated payments are generally due in mid-April, June, September and January. Paying too little during the year can bring an underpayment penalty even if you pay in full when you file.
The safe-harbor rules help: paying at least 100% of last year’s tax, or 110% if your adjusted gross income was over $150,000, generally avoids the penalty. We set your payments from a projection, then adjust them as the year develops.
The safe-harbor rules help: paying at least 100% of last year’s tax, or 110% if your adjusted gross income was over $150,000, generally avoids the penalty. We set your payments from a projection, then adjust them as the year develops.
Florida taxes your business still owes
Florida doesn’t tax your personal income, but your business may still deal with Florida taxes: sales and use tax on taxable sales (6% state rate plus the county surtax, which brings Sarasota County to 7%), reemployment tax on employee wages, and corporate income tax if you operate as a C corporation.
We keep those filings in view alongside your federal returns, so nothing is missed between the IRS and the Florida Department of Revenue.
Two federal levers worth reviewing every year. Many owners of pass-through businesses may qualify for the qualified business income deduction, worth up to 20% of qualified business income, subject to income limits and the type of business. And a retirement plan for the business — a SEP-IRA or a solo 401(k), for example — lets you put money away for yourself while deducting the contributions. Which plan fits depends on your profit, whether you have employees and how much you want to save, so we compare them with your numbers before year-end.
We keep those filings in view alongside your federal returns, so nothing is missed between the IRS and the Florida Department of Revenue.
Two federal levers worth reviewing every year. Many owners of pass-through businesses may qualify for the qualified business income deduction, worth up to 20% of qualified business income, subject to income limits and the type of business. And a retirement plan for the business — a SEP-IRA or a solo 401(k), for example — lets you put money away for yourself while deducting the contributions. Which plan fits depends on your profit, whether you have employees and how much you want to save, so we compare them with your numbers before year-end.
Common mistakes
Mistakes we help you avoid
Electing S corporation status too early
Below a certain level of profit, the payroll costs and added filings can outweigh the self-employment tax saved.
An unreasonable owner salary
S corporation owners who work in the business must pay themselves a reasonable salary. Too low invites IRS scrutiny.
Mixing business and personal money
Shared accounts make deductions hard to prove and books hard to keep. Separate accounts are the first fix.
Skipping estimated payments
Without withholding, missed quarterly payments can bring underpayment penalties even when the full tax is paid at filing.
Overlooking Florida filings
Sales and use tax and reemployment tax have their own registrations and deadlines with the Florida Department of Revenue.
Who this is for
Self-employed professionals, LLC and S corporation owners, contractors, shop and restaurant owners, and anyone planning to sell or hand off a business.
Answers
Small Business Taxes: common questions
Should my LLC elect S corporation status?
Sometimes. It can reduce self-employment tax once profit is high enough to support a reasonable salary, but it adds payroll and a separate return. We compare both ways with your numbers before you decide.
When are quarterly estimated taxes due?
Generally April 15, June 15, September 15 and January 15. When a date falls on a weekend or holiday, it moves to the next business day.
Does Florida tax small business income?
Florida has no personal income tax, so pass-through income from LLCs, partnerships and S corporations isn’t taxed by the state. C corporations do pay Florida corporate income tax.
What records should I keep?
Receipts, invoices, bank and card statements, mileage logs and payroll records, kept so each deduction can be traced to a document. The IRS generally expects records to be kept for at least three years after filing.
Can you help if I'm behind on filings?
Yes. We’ll help you work out what’s missing, prepare the returns in order and talk through the options for any balance due.
Sources and official guidance
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Tell us a little about your situation and we’ll be in touch within one business day.
- Call (941) 225-5455
- info@sarasotataxplanning.com
- By appointment only
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