Florida Small Business Tax Preparation 2025: What LLCs and Sole Proprietors Must Know

Starting a small business in Tampa or anywhere in the Tampa Bay area means more than just having a good idea. One of the first decisions you’ll face is choosing the right business structure. For most entrepreneurs, that means deciding between a sole proprietorship and an LLC (Limited Liability Company).

With the 2025 tax code changes, the choice is more important than ever. Whether you’re a freelancer in Brandon, a shop owner in Riverview, or starting a clinic in Wesley Chapel, the way you structure your business affects your taxes, liability, and long-term growth.

At RND Solutions, we specialize in helping small businesses across Florida — especially in Tampa and the surrounding areas — with LLC formation, bookkeeping, and small business tax preparation under the latest tax laws.

What Is a Sole Proprietorship?

• Simple & cheap: Fastest way to start a business in Florida.

• Personal liability: No separation between personal and business assets.

• Taxes: Profits and losses are reported directly on your Schedule C (Form 1040).

Best for: freelancers, consultants, and side hustlers who want something quick and low-cost.

What Is an LLC?

• Legal protection: Separates your personal finances from business liabilities.

• Tax flexibility: You can choose to be taxed as a sole proprietor, partnership, or even elect S-Corp taxation.

• Credibility: An LLC in Tampa, Wesley Chapel, or Plant City gives your business more professional standing with clients and lenders.

Best for: businesses that want to grow, hire employees, or protect personal assets.

Key Tax Code Updates for 2025 (Florida Impact)

The One Big Beautiful Bill Act (OBBB), passed in 2025, introduced several updates that affect LLCs and sole proprietorships nationwide — including Florida small businesses. Here’s what matters most:

• Qualified Business Income (QBI) Deduction

  • Still available in 2025: Up to 20% deduction for eligible pass-through businesses (LLCs, sole proprietors, partnerships, S-Corps).

  • Florida benefit: Since Florida has no state income tax, this is purely federal savings that directly boosts Tampa Bay small business owners’ bottom line.

• Higher Standard Deduction

  • More savings: The standard deduction is higher in 2025, which means fewer owners in Florida will need to itemize.

  • Good for: Sole proprietors filing Schedule C, LLC members filing personal returns.

• Self-Employment Tax (15.3%)

  • Applies to both sole proprietors and LLCs taxed as individuals.

  • Covers Social Security and Medicare contributions.

  • Strategy in Florida: LLCs electing S-Corp status can lower self-employment tax by splitting income between salary and distributions.

• New Temporary Deductions (2025–2028)

  • Tips deduction: Up to $25,000 for qualifying tipped employees (restaurants in Tampa, service industries in Clearwater, etc.).

  • Overtime deduction: Up to $12,500 (single) / $25,000 (joint) for qualifying overtime pay.

  • Why it matters locally: Hospitality, healthcare, and service businesses in Tampa Bay may see major savings if they file correctly.

• TCJA Provisions Extended

  • The lower tax brackets and credits from the Tax Cuts and Jobs Act are now permanent.

  • Provides stability for small businesses in Florida planning long-term.

• SALT Deduction Adjustment

• Expanded for some taxpayers.

• Florida advantage: Since Florida has no personal income tax, this is less relevant — another reason Tampa Bay remains a business-friendly region.

Florida-Specific Rules Every Small Business Should Know

• Annual LLC Report: Every Florida LLC must file an annual report with the Division of Corporations (~$138.75). Missing it leads to late fees.

• Sales Tax (6%): Florida imposes state sales tax (plus county surtaxes in Hillsborough, Pasco, and Pinellas). If you’re selling in Tampa or Brandon, you must collect and remit.

• Workers’ Comp Insurance: Required for businesses with 4+ employees (1+ in construction).

• No state income tax: Sole proprietors and LLCs only pay federal taxes.

👉 Bottom line: Florida favors LLCs, making them especially attractive for small business owners in Tampa Bay.

Why an LLC Is Often the Smarter Choice in 2025

For small business owners in Tampa Bay:

• Liability protection: Your home in Riverview or car in Brandon isn’t at risk if your business faces a lawsuit.

• Tax flexibility: Electing S-Corp status can save thousands.

• Growth-ready: An LLC structure makes it easier to expand into new markets like Clearwater, St. Petersburg, and Plant City.

A sole proprietorship may be simple, but in most cases, an LLC offers better long-term protection and savings.

How RND Solutions Helps Tampa Bay Small Businesses

At RND Solutions, we’ve helped small business owners across Tampa, Wesley Chapel, Riverview, Brandon, and the wider Tampa Bay area with:

1. LLC Formation Assistance – We handle the paperwork, filing, and compliance so your Florida LLC is set up right the first time.

2. Bookkeeping & Tax Services – From tracking expenses to preparing reports, we keep your books accurate and tax-ready.

3. Local Expertise – We understand the unique needs of Tampa Bay businesses, from medical clinics in Sun City Center to retail shops in Plant City.

   
   

With the 2025 tax updates, Florida business owners face both new opportunities and new challenges. In a state with no personal income tax, the benefits of forming an LLC are even stronger.

👉 If you’re starting or growing a business in Tampa or the surrounding areas, RND Solutions can help you form your LLC and manage your bookkeeping, ensuring you stay compliant and take advantage of every tax benefit available.