DISCLAIMER: The information presented on this page and the following pages related to the local business tax is for general information only. There are important decisions that will have impacts on annual filings, payroll taxes, and other considerations. The information below is not to be construed as or be considered as legal advice when forming a business entity. A business owner, either as a sole proprietor or as a corporate entity, should seek advice from licensed professionals when starting a business.
Important Considerations:
- Will this be a home-based business or located in a commercially-zoned building?
- What is the type of business entity/structure?
- Will you use your social security number (SSN) or federal employer identification number (FEIN)?
- Other special considerations such as insurance, sales tax collection, state licensure.
- Business tax exemptions for certain classes of business owners.
- When will your business open to the public?
Although the Florida Department of State, Division of Corporations may allow the use of a post office box or rented mailbox (e.g., UPS Store, Mailboxes Etc., etc.), the business tax ordinance requires a physical location. If you will be keeping your tax records at your home, then you have a home-based business.
For Gainesville business tax, your business must have an address within the official Gainesville city limits. You may check your address with the Alachua County Property Appraiser’s office at www.acpafl.org and run a property search for your address. If the tax jurisdiction is 3600 Gainesville or 3700 Gainesville, your address is in the city limits.
Home-Based Businesses: Effective July 1, 2021, home-based business operational regulations were set by state law. Section 559.955 of the Florida Statutes specifies regulations for operating a home-based business.
Commercially-Zoned Buildings: Businesses that operate in a commercially-zoned building are required to contact the Planning Division for zoning compliance. Please call 352-334-5023 or go to Planning Forms and choose Zoning Verification under “Existing Businesses."
DISCLAIMER: The information provided below is not be construed as or be considered as legal advice. Always seek advice and counsel from licensed professionals when making these decisions.
For information on the types of business entities/structures, visit Sunbiz.org.
All businesses, regardless of the structure must comply with the Fictitious Name Act. This is section 865.09 of the Florida Statutes. If your business name is your personal legal name, then you do not need to file a fictitious name. You may not use a nickname, shortened form of your name: example, Mike for Michael. You cannot use your middle name or an initial in place of your first name. Also, if you meet one of these conditions you are exempt from filing a separate fictitious name with the Division of Corporations:
A business formed by an attorney actively licensed to practice law in this state, by a person actively licensed by the Department of Business and Professional Regulation or the Department of Health for the purpose of practicing his or her licensed profession, or by any corporation, limited liability company, partnership, or other business entity that is organized or registered and in active status with the division is not required to register its name pursuant to this section, unless the name under which business is to be conducted differs from the name as licensed or registered.
When submitting the business tax affidavit, you will need to provide the business’ name and fictitious name or sign a fictitious name exemption affidavit.
DISCLAIMER: The information provided below is not be construed as or be considered as legal advice. Always seek advice and counsel from licensed professionals when making these decisions.
The business tax statute requires all businesses to provide either the owner’s social security number (SSN) or federal employer identification number (EIN).
Please contact the Internal Revenue Service at www.irs.gov for information on the differences between filing taxes under a SSN or an EIN. These taxes include income tax and other payroll taxes.
DISCLAIMER: The information provided below is not be construed as or be considered as legal advice. Always seek advice and counsel from licensed professionals when making these decisions.
Although the following items are not part of the business tax, they are important topics for consideration.
State Licensure: The State of Florida has departments and agencies that issue professional licenses such as for barbers, doctors, lawyers, etc. Each business must provide a copy of every employee’s professional license as part of the business tax affidavit packet.
Tangible Taxes: Go to the Alachua County Property Appraiser office website and review the tangible property menu.
Sales Tax: The Florida Department of Revenue can answer questions related to collecting and paying sales tax for goods or services your business sells or offers.
Liability Insurance: Some businesses such as taxis, towing services, etc. must provide proof of insurance for other City of Gainesville permitting. Other businesses do not need to show proof of insurance. Business owners may consider contacting an insurance agency about liability insurance.
Under state law there are classes of business owners who must submit the required business tax packet but are exempt from paying the business tax.
- Permanent residents of Alachua County who do not have more than one (1) employee or helper who is:
- 65 years of age or older as of October 1 – must provide a state photo ID, passport, or birth certificate
- Handicap and incapable of manual labor – must provide a statement from a licensed doctor that provides the extent of the disability
- Widow/er with minor dependent children – must sign a certification
- The exemption applicant is a sole proprietor or majority shareholder in a corporate entity and the business has less than 100 employees and is:
- An honorably discharged veteran of the U.S. Armed Forces – must provide a DD214 or VA ID card
- The spouse of a veteran or a widow of a veteran who did not remarry – must provide the veteran’s DD214 or VA ID card and a marriage license
- The spouse of an active duty servicemember stationed in Gainesville – must provide a copy of the service member’s current orders and a marriage license
- Receiving public assistance – must provide a copy of the statement of benefits with the applicant as a listed beneficiary
- In a low-income household – must provide proof the household annual income is less than 130% of the federal poverty level
Business Tax Affidavit Packet
DISCLAIMER: The information below applies only to businesses submitting their initial business tax affidavit. Existing businesses have other requirements.
The window for submitting the business tax affidavit packet is based on the date the business will open to the public. It is not based on the day a corporation is created or on the day a bank account is created, etc.
The business tax affidavit packet must include:
- Local Business Tax Affidavit
- Social Security Number or Federal Employer Identification Form
- Fictitious Name Registration or Fictitious Name Exemption Affidavit
- Proof of State Licensure, if required.
The business tax affidavit can be submitted as early as two weeks before the opening date and up to seven business days after the opening date. Within this window, only the business tax is due. Filing the business tax affidavit after the seventh business day will result in a 25% delinquency penalty being applied per state law and city ordinance. There is an additional statutory penalty of $250.00 if the business tax is not paid within 180 days of the business’ opening date. These penalties cannot be waived.
The business tax is due once the business opens to the public regardless of whether all other processes have been completed.
The business tax must be renewed each September. Delinquency penalties are assessed if payment is not submitted on time.
When you are ready to open your business, submit your business’ information.
You may also send an email to cityrr@gainesvillefl.gov or call 352-334-5024. Office hours are Monday through Friday from 8 a.m. to 5 p.m., excluding holidays.