A legislative bill was recently enacted that may reduce the sales tax rate on commercial leases to 2%. The timing of the decrease depends on the economic recovery of the unemployment compensation trust fund. Once this balance has reached its pre-pandemic level, the sales tax rate will adjust. You may need to periodically consult with your accountant to determine the current tax rate since it is contingent upon the amount in the employment compensation trust fund.
Posted in Business & Corporate Law
If you are looking to relocate your business to Florida, we suggest using a statutory conversion if this option is available. A statutory conversion transforms your state’s LLC or Corporation into a Florida LLC or Corporation, and the EIN, property deeds, and management structure generally remain the same. The conversion process is much simpler than forming a new entity and winding down the old entity. For this to be possible, both states must have laws permitting this type of conversion. For the conversion to occur, you file Articles of Conversion along with either Articles of Organization (for an LLC) or Articles of Incorporation (for a Corporation) with the Florida Department of State’s Division of Corporations (commonly referred to as Sunbiz). Additionally, Florida law requires that a Plan of Conversion be drafted and approved for proper corporate governance. Once the Articles of Conversion are accepted, you may need to dissolve your business entity in the previous state.
Closing a business can be a difficult and challenging task. First, before you close your business, find out if tax relief, your local county, or the CARES Act legislation can help you stay open. Also, be sure to consult with your professional team such as an attorney or accountant.
There are typical actions that are taken when closing a business. This blog post focuses on tax responsibilities with the IRS and FL Department of Revenue. It does not address non-tax obligations such as those associated with the vendors, contracts, or the FL Division of Corporations.
On August 8, 2020, the President issued a Memorandum entitled Deferring Payroll Tax Obligation in light of the Ongoing COVID-19 Disaster. The Memorandum authorizes the Secretary of the Treasury to defer certain payroll tax obligations. The purpose of the Memorandum is to produce a targeted action that “will put money directly in the pockets of American workers and generate additional incentives for work and employment.”
Posted in Business & Corporate Law
The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act was just passed by Congress. The CARES Act totaling $2 trillion provides for individuals, families, governments, large corporations, and small businesses. As to small businesses, below are some important links to Resources to help. The first link is a guide by the U.S. Senate Committee on Small Business & Entrepreneurship, which outlines the various aspects of the CARES Act that apply to small businesses. The second and third links are to the Treasury Department and SBA, which provides important updates on the CARES Act.
Last summer, Florida passed new legislation requiring all Florida corporate income tax filers to provide certain additional information online with the Florida Department of Revenue (FDOR). The new online information disclosure relates to how certain areas of the federal Tax Cuts and Jobs Act impact a company’s Florida income tax. Note that the state has limited this additional online reporting to only those companies required to file a Florida corporate income/franchise tax returns (Form F-1120 or F-1120-A). Other entity types such as partnerships are not affected by this legislation.
Your local Florida County Property Appraiser mails out the Notice of Proposed Property Taxes (Truth in Millage or “TRIM” form) in August or September of each year.
Property owners or taxpayers who wish to contest or appeal their property value to the Value Adjustment Board must file a petition (one of the DR-86 forms) with the clerk of court within 25 days of the Notice of Proposed Property Taxes:
Posted in Business & Corporate Law,Real Estate Law
Good news for Commercial Landlords, the reduction on state level sales taxes continues to decline. Florida is reducing the state-level sales tax rate on commercial leases for occupancy periods beginning on or after January 1, 2020 down to 5.5%.
However, counties are still imposing the local option surtax so be careful to check your county’s guidelines. The local option surtax varies between 0.5% to 1% for those counties that impose it. Currently, for 2019 St. Johns County has an additional 0.5% surtax.
(904) 823-3333
1301 Plantation Island Drive, Suite 304
St. Augustine, Florida 32080
Jackson Law Group © 2007-2024 – All Rights Reserved
Legal Notice • Sitemap
