Local and State Taxes

Local and State Taxes

Depending on what state your LLC is registered in, a County Business Tax Number may be required if you are engaging in a business, profession, or occupation located within that County. Anyone providing merchandise or services to the public within the jurisdiction of the County, (even a single person company or home based occupation), must obtain a county business tax account to operate. This is in addition to any other taxes or fees paid to operate a business such as your LLC. Some states may refer to this as an occupational license, but let’s be blunt here; this is a tax.

NOTE: While the tax year for your business might be January 1^st to December 31, the tax year that the county recognizes may be different. In Florida for instance the tax year is from October 1st through September 30th. Annual tax bills are sent in August.

Business Tax Receipts

When paid, a Business Tax Receipt is issued. Most counties are quick to protect themselves with a disclaimer such as this:

“The Business Tax Receipt does not guarantee the quality of the work or regulate the business. The receipt also does not permit a person/business to violate any existing regulatory or zoning laws of the state, county or cities, nor does it exempt the business from licenses or permits that may be required by law.”

Some states may go further and explain what the tax is used for, but most do not. They simply require it and have stiff penalties for a business operating without one.

“Operating without having paid the business tax is a misdemeanor punishable by a $100 minimum fine plus a daily fine of 25% of the total annual tax due. The total fine may not exceed five times the value of the tax or $500, whichever is greater. For businesses already registered to pay the tax, late payment must include a delinquency penalty of up to 25% per tax year.”

The fee varies based on what type of business you operate and how many employees you have.

Sample Fee Schedule

For the purposes of your publishing company it is suggested that you choose “Professional” and be glad that you are not a circus performer or fortune teller.

Sample Form

Here is a sample form from Sarasota County, Florida.

Once you have filed the completed form and paid the fee you’ll be given a certificate that proclaims your county tax ID number. Some states require that you display this in your place of business. Since you are working out of your own home this seems a bit silly. (I hung mine in the bathroom) Filing it with the rest of your business documents should be sufficient.