How to Start a Business in Florida: Accounting & Tax Checklist

Starting a business in Florida feels like a big leap, and honestly, it is. But if you set up your accounting and tax systems right from the start, you’ll save yourself a ton of headaches down the line. Here’s a checklist to keep you on track, help you get registered, and keep your books clean, so you can focus on growing your business.

1. Pick your business structure and know what it means for taxes

First off, decide if you’re going to be a sole proprietor, partnership, LLC, or corporation. This choice affects how you report income, pay taxes, and how much protection you get for your personal assets. Each setup comes with different rules for accounting and reporting. Figure out if you’ll file taxes with your personal return or if you need separate business returns. The earlier you sort this out, the smoother your bookkeeping will go.

2. Register with the state and your local area

Go through the official steps to form your business with Florida, and get any local licenses or permits you need. Hold onto all those formation documents and confirmation emails—they’re your proof if anyone asks and you’ll need them for things like opening a business bank account or getting an EIN.

3. Get your federal EIN

Apply for an Employer Identification Number (EIN) as soon as you need a separate tax ID. You’ll need this if you’re hiring anyone, opening a business account, or forming certain types of companies. An EIN keeps your personal and business taxes separate and makes things like payroll way easier.

4. Open a business bank account and keep finances separate

Don’t mix your personal and business money. It’s a bookkeeping mess and can mess up your liability protections. Open a business checking account (and maybe a business credit card, too). Record every transaction and check your accounts every month to spot errors or fraud early.

5. Set up an accounting system and chart of accounts

Pick an accounting system that matches how big or complex your business is. Set up a chart of accounts to track your income, expenses, assets, liabilities, and equity. Use the same account names from the start, so reconciling every month and at year-end isn’t a nightmare.

6. Choose your accounting method: cash or accrual

Decide if you’ll use the cash method (track money when it moves) or accrual (track income and expenses when they happen, even if cash hasn’t moved yet). This changes how you report income for taxes, so pick one early and write it down somewhere. Changing later is a hassle with the IRS.

7. Register for state taxes and licenses

Check if you need to collect or pay Florida sales tax, register for payroll, or pay unemployment taxes. Keep your registration numbers and filing dates handy—missing a deadline can cost you.

8. Set up payroll and classify your workers

If you hire people, get your payroll system sorted out so you’re withholding the right taxes, reporting wages, and making tax deposits. Make sure you know who’s an employee and who’s an independent contractor—mixing these up can get expensive fast. Keep contracts and accurate records for everyone.

9. Track sales tax on goods and services

Figure out what you sell that’s taxable and what’s not. Charge sales tax when you need to and keep records for any exemptions or special certificates. File and pay sales tax on time—don’t wait for a reminder from the state.

10. Stay on top of estimated taxes

Many small business owners have to pay federal and state estimated taxes every quarter. Estimate what you’ll owe, pay on time, and avoid those painful penalties come tax season.

11. Keep detailed expense records and proof for deductions

Save your receipts, invoices, mileage logs—everything. Good records back up your deductions for things like operating costs, travel, your car, or your home office. Stick to a routine for tracking and categorizing expenses, so nothing slips through the cracks.

12. Put internal controls and separation of duties in place

To avoid mistakes or fraud, don’t let one person control everything. Have different people handle cash, approve expenses, and do the bank reconciliations. Set approval limits and always require receipts for reimbursements.

13. Don’t forget annual reports and renewals

Florida and local governments often need annual reports or renewals from businesses. Mark these deadlines on your calendar and set aside money for the fees. Missing them can put your business at risk, so stay ahead.

Starting a business is a lot to juggle, but if you work through this list, you’ll have a solid foundation—and that makes everything else a lot easier.

14. Plan for sales growth and tax planning

As your revenue climbs, take another look at your accounting setup and tax strategy. Don’t forget things like updating payroll, recalculating estimated taxes, or even switching your business structure if it means saving on taxes. Talk with your accountant regularly—they’ll help you stay ahead, not just catch up.

15. Keep records and back up financial information

Hold on to your financial records—tax returns, payroll, receivables—for as long as you’re supposed to. Back up your digital files somewhere secure, and keep your paper records organized. When tax time or an audit rolls around, you’ll be glad you did.

16. Conduct regular reconciliations and financial reviews

Every month, match up your bank and credit card statements. Stay on top of unpaid invoices and monitor what you owe suppliers. These regular check-ins help you spot problems early, keep your cash flow healthy, and make smarter decisions for your business.

17. Understand sales tax nexus and multi-jurisdiction considerations

If you sell products or services in different areas, figure out where you owe sales tax. Sometimes, selling remotely or just having a physical presence somewhere means new tax responsibilities. Track where your customers are and where you’re doing business—it matters.

18. Build a simple budget and cash flow forecast

Put together a straightforward budget and forecast. This way, you’ll be ready for seasonal ups and downs, see your upcoming tax bills, and avoid running short on cash. Planning ahead means you can pay taxes and payroll on time without scrambling.

Final tips

Start with a checklist you trust, and keep updating it as your business grows. Reliable bookkeeping, prompt tax registrations, and steady financial habits really are the backbone of a strong business. Investing a little time now in staying organized pays off—less stress, better decisions, and no nasty surprises when tax season hits.