Federal Income Tax Consequences of Various Florida Business Structures

Type of Business Structure

Default Tax Consequences

Possible Elections To Be Taxed As Other Structure

Sole Proprietorship

The Individual Is Taxed on Income Earned in His Venture as Sole Proprietor

None

Florida Corporation

Taxed as a C Corporation

S Corporation

Florida Partnership, Limited Partnership, Limited Liability Partnership, Limited Liability Limited Partnership

Taxed as a Partnership

C Corporation or S Corporation

1 Member Limited Liability Company

Disregarded As Entity Separate From Its Owner for Federal Income Tax Purposes

C Corporation or S Corporation

2 or More Member Limited Liability Company

Taxed as a Partnership

C Corporation or S Corporation