Orlando CPA Guide 2026: Key Tax Strategies for Small Business Owners

Published February 12, 2026 | Orlando Tax Guide

If you run a small business in Orlando, staying on top of new tax rules and maximizing deductions can save you thousands in 2026. This definitive guide compiles the latest IRS and Florida Department of Revenue changes, actionable CPA strategies tailored to the Orlando economy, and practical steps to keep your business tax compliant and thriving. Whether you operate a hospitality business near International Drive, a tech startup in Lake Nona, or a professional service firm in Winter Park, understanding Florida’s unique tax landscape is essential for your bottom line. Explore our complete tax strategy services to see how we help Orlando entrepreneurs keep more of what they earn.

 

 

Table of Contents

• Key Takeaways
• 2026 Federal & Florida Tax Law Changes
• Business Entity Selection in Florida: LLC, S Corp, or C Corp?
• Maximizing Deductions in 2026
• Quarterly Tax Planning for Orlando Businesses
• Working with an Orlando CPA: What to Expect
• Uncle Kam in Action: Orlando Case Study
• Next Steps
• Orlando Small Business Tax FAQs
• Related Resources

Key Takeaways

• Tax Cut Sunset Alert: Key provisions from the 2017 Tax Cuts and Jobs Act expire in 2026, potentially increasing your tax liability by 15-25% if you don’t plan ahead with your Orlando CPA.
• Bonus Depreciation Drops to 20%: Act fast if you’re planning equipment purchases—2026 is the last year to claim meaningful bonus depreciation before it phases out completely in 2027.
• Florida’s No-Income-Tax Advantage: While Florida has no state income tax for individuals, your business still faces a 5.5% corporate income tax if you operate as a C Corp, plus 6.5% sales tax in Orlando.
• S Corp Election Saves $8,000-$15,000 Annually: For profitable Orlando businesses earning above $80,000, electing S Corp status can reduce self-employment taxes significantly—but you must file Form 2553 by March 15, 2026.
• Quarterly Estimated Taxes Are Non-Negotiable: Missing quarterly payments triggers IRS penalties of 0.5% per month plus interest—Orlando CPAs recommend automated quarterly projections to avoid surprise tax bills.

2026 Federal & Florida Tax Law Changes

The 2026 tax year brings several updates that Orlando business owners should review with their CPA immediately. Understanding these changes now—rather than in April 2027—can save you $5,000 to $25,000 or more depending on your revenue and entity structure.

Expiration of Tax Cut Provisions

Key provisions from the Tax Cuts and Jobs Act of 2017 are scheduled to sunset at the end of 2025. This means starting in tax year 2026, you’ll see changes to:

• Standard Deduction: The nearly doubled standard deduction reverts to pre-2018 levels (approximately $7,500 for singles, $15,000 for married filing jointly) unless Congress extends it.
• Section 199A Pass-Through Deduction: The 20% qualified business income (QBI) deduction that benefits sole proprietors, S Corps, and partnerships is set to expire. For an Orlando business owner earning $150,000 in QBI, losing this deduction means an additional $6,000-$7,400 in federal tax.
• Individual Tax Brackets: Marginal rates are scheduled to increase, with the top rate returning from 37% to 39.6%.

Action item: Schedule a strategy session with your Orlando CPA before Q3 2026 to model different scenarios and adjust your quarterly estimated payments accordingly.

Bonus Depreciation Phase-Out Continues

For eligible assets placed in service in 2026, bonus depreciation drops to 20% (down from 100% in 2022, 80% in 2023, 60% in 2024, and 40% in 2025). If you’re planning to purchase vehicles, computers, machinery, or furniture for your Orlando business, consider accelerating those purchases into early 2026 to capture the remaining 20% write-off. In 2027, bonus depreciation is scheduled to drop to 0%. See IRS Depreciation Rules for qualifying property definitions.

Florida Corporate Income Tax and Sales Tax

Florida remains at 5.5% corporate income tax in 2026 for C Corporations. While Florida continues its status as a no-state-income-tax state for individuals—a major competitive advantage for Orlando entrepreneurs—businesses must monitor sales and use tax requirements closely. Orlando’s combined sales tax rate is 6.5% (6% state + 0.5% local discretionary surtax), applicable to most tangible goods and certain digital products and services. The Florida Department of Revenue provides detailed guidance on taxable vs. exempt transactions.

Remote Work and State Tax Nexus

If your Orlando business employs remote workers in other states, you may have created nexus (tax presence) in those jurisdictions, triggering filing obligations for income tax, sales tax, or both. This is especially critical for e-commerce businesses and software-as-a-service (SaaS) companies. Your CPA should perform a nexus study annually to identify compliance requirements and avoid costly penalties.

Business Entity Selection in Florida: LLC, S Corp, or C Corp?

Choosing the right business entity is one of the most impactful tax decisions you’ll make as an Orlando business owner. The wrong structure can cost you thousands in unnecessary taxes every year. Here’s how to evaluate your options in 2026:

Entity Type	Taxation	Best For	Key 2026 Note
LLC	Pass-through or S Corp election	Flexibility, single-owner or partnerships	Check for 2026 pass-through QBI eligibility
S Corp	Salary + distributions; avoids self-employment on some income	Growing businesses with profit above $80K	S Corp election deadlines: March 15, 2026
C Corp	Flat 21% federal tax; double taxation risk	Scaling startups, reinvesting earnings	Consider Florida’s 5.5% state corporate tax

LLC: Maximum Flexibility for Orlando Startups

A Florida LLC offers liability protection, ease of formation (file Articles of Organization with the Florida Division of Corporations), and flexibility in taxation. By default, single-member LLCs are taxed as sole proprietorships and multi-member LLCs as partnerships. You can also elect S Corp or C Corp taxation by filing IRS Form 2553 or Form 8832. Most Orlando small businesses start as LLCs due to the low annual maintenance cost (Florida annual report fee: $138.75) and minimal compliance requirements.

S Corp: The Self-Employment Tax Saver

Once your Orlando business consistently earns above $80,000 in net profit, electing S Corporation status can save you $8,000-$15,000 per year in self-employment taxes. Here’s why: as an S Corp shareholder-employee, you pay yourself a reasonable salary (subject to FICA taxes at 15.3%) and take the remaining profits as distributions (not subject to FICA). For example, if your business earns $150,000 and you pay yourself a $70,000 salary, the remaining $80,000 in distributions avoids the 15.3% self-employment tax, saving you approximately $12,240 annually.

Critical deadline: To elect S Corp status for tax year 2026, file IRS Form 2553 by March 15, 2026 (or within 2 months and 15 days of forming your entity). Miss this deadline and you’ll wait until 2027 to gain S Corp benefits. Read our full LLC vs S Corp guide for Orlando business owners.

C Corp: For High-Growth and Venture-Backed Companies

C Corporations pay a flat 21% federal corporate income tax plus Florida’s 5.5% state corporate tax (total: 26.5% effective rate on profits). While C Corps face double taxation when distributing dividends to shareholders, they’re ideal if you plan to retain and reinvest earnings, raise venture capital, or offer stock options to employees. Orlando tech startups in Lake Nona and Medical City often choose C Corp status to attract investors and prepare for eventual acquisition or IPO.

Maximizing Deductions in 2026

Several deductions are under-utilized by Orlando entrepreneurs, leaving thousands of dollars on the table each tax season. Here’s how to claim every deduction you’re legally entitled to in 2026:

Deduction	Description (2026 Update)
Home Office	Eligible if regular, exclusive use; track square footage and utility bills
Section 179	Immediate expensing cap: $1.25M for 2026 (indexed annually). Applies to qualifying equipment/tech.
Retirement Contributions	SEP IRA cap: $69,000 in 2026; Solo 401(k) employee deferral cap: $23,000
Health Premiums	Deductible for qualifying self-employed business owners and S Corp shareholder-employees
Orlando Sales Tax	Collect and remit 6.5% on taxable sales. Consult a local CPA on exclusions for digital and professional services.

Home Office Deduction

If you operate your Orlando business from a dedicated home office space (regular and exclusive use required), you can deduct a portion of your mortgage/rent, utilities, insurance, and maintenance. For 2026, you can use the simplified method ($5 per square foot, up to 300 sq ft = $1,500 max) or the regular method (actual expenses × business-use percentage). Example: A 200 sq ft home office in a 2,000 sq ft home = 10% business use. If your annual housing costs are $24,000, you can deduct $2,400.

Section 179 Expensing

Section 179 allows immediate expensing of qualifying equipment and software purchases up to $1.25 million in 2026 (indexed for inflation). This is especially valuable for Orlando businesses purchasing vehicles, computers, machinery, furniture, and certain software. Unlike bonus depreciation (which applies to new property only), Section 179 works for both new and used assets. The catch: your total equipment purchases cannot exceed $3.13 million, and the deduction is limited to your taxable business income.

Retirement Plan Contributions

Self-employed Orlando business owners can supercharge retirement savings while reducing taxable income. For 2026, SEP IRA contribution limits reach $69,000 (25% of compensation), and Solo 401(k) plans allow $23,000 in employee deferrals plus up to 25% of compensation as employer contributions. Example: A 50-year-old S Corp owner with $150,000 in W-2 wages can contribute $23,000 employee deferral + $7,500 catch-up + $37,500 employer contribution = $68,000 total, all tax-deductible.

Health Insurance Premiums

Self-employed individuals can deduct 100% of health insurance premiums for themselves, spouses, and dependents as an above-the-line deduction (reduces adjusted gross income). S Corp shareholder-employees with more than 2% ownership can deduct premiums, but the deduction must be added back to W-2 wages and is not eligible for the self-employment tax deduction. Your Orlando CPA can structure this correctly to maximize the benefit.

Vehicle Expenses

For 2026, the IRS standard mileage rate is $0.70 per mile (updated annually). Alternatively, you can deduct actual expenses (gas, insurance, maintenance, depreciation) multiplied by your business-use percentage. Orlando business owners who drive frequently to client meetings, job sites, or networking events should maintain a detailed mileage log (date, destination, business purpose, miles driven) to substantiate deductions.

Tip: Download our 2026 Orlando Small Business Tax Checklist for a line-by-line deduction guide!

Quarterly Tax Planning for Orlando Businesses

Quarterly estimated taxes help avoid IRS penalties and surprise tax bills in April. For Orlando business owners, proactive quarterly planning is essential—especially in seasonal industries like hospitality and tourism where cash flow fluctuates throughout the year.

2026 Quarterly Tax Deadlines

• Q1 2026 (Jan 1 – Mar 31): Payment due April 15, 2026
• Q2 2026 (Apr 1 – May 31): Payment due June 16, 2026
• Q3 2026 (Jun 1 – Aug 31): Payment due September 15, 2026
• Q4 2026 (Sep 1 – Dec 31): Payment due January 15, 2027 (or April 15, 2027 if you file your tax return by then)

How to Calculate Quarterly Estimated Taxes

The IRS safe harbor rule protects you from underpayment penalties if you pay either (a) 90% of your 2026 tax liability, or (b) 100% of your 2025 tax liability (110% if your adjusted gross income exceeded $150,000). Most Orlando CPAs recommend using the prior-year method for simplicity, then adjusting in Q3 and Q4 if income increases or decreases significantly.

Use IRS Form 1040-ES (individuals/sole proprietors/S Corps/partnerships) or Form 1120-W (C Corps) to calculate and submit payments electronically via IRS Direct Pay, EFTPS, or check.

Quarterly CPA Review Process

Orlando CPAs recommend scheduling quarterly check-ins to review:

• Year-to-date profit and loss statements
• Cash flow projections for the next quarter
• Estimated tax payment calculations
• Deduction opportunities (equipment purchases, retirement contributions, etc.)
• Entity structure optimization (e.g., should you elect S Corp status next year?)

This proactive approach prevents year-end surprises and ensures you’re taking advantage of every deduction available. Learn the step-by-step quarterly planning process for Central Florida entrepreneurs.

Working with an Orlando CPA: What to Expect

Local CPAs offer industry-specific guidance for hospitality, real estate, and tech businesses in Orlando. The right CPA becomes a strategic partner—not just a tax preparer—helping you navigate Florida’s unique tax landscape, plan for growth, and avoid costly mistakes.

Services Your Orlando CPA Should Provide

• Annual tax preparation: Federal, state (if applicable for multi-state operations), and local returns
• Quarterly tax projections: Estimated payment calculations and strategic adjustments
• Entity structure consulting: LLC vs S Corp vs C Corp analysis with dollar-specific tax savings projections
• Bookkeeping oversight: Review of QuickBooks/Xero for accuracy and deduction maximization
• Audit representation: IRS correspondence and audit defense
• Multi-state compliance: Nexus studies, sales tax registration, income tax filings for remote employees
• R&D tax credit guidance: Especially valuable for Orlando tech companies and manufacturers

Questions to Ask When Hiring an Orlando CPA

When searching for an Orlando CPA in 2026, request:

• References from fellow small business owners in your industry
• Experience with Florida and multi-state tax compliance
• Up-to-date knowledge of digital commerce and R&D credit opportunities
• Fixed-fee or transparent value-based billing (avoid hourly-only CPAs who lack incentive to be efficient)
• Secure client portal for document sharing and communication
• Proactive outreach (quarterly emails, year-end tax planning reminders, legislative updates)

CPA Fee Structures in Orlando

Expect to invest $1,500-$5,000+ annually for comprehensive CPA services depending on your business complexity:

• Sole proprietors/single-member LLCs: $1,500-$2,500 for tax prep and basic planning
• S Corps/partnerships: $2,500-$4,500 for corporate and personal returns plus quarterly consulting
• Multi-state C Corps: $5,000-$15,000+ for complex compliance, nexus studies, and strategic advisory

Find a list of highly rated Orlando CPAs at CPAverify.org and Florida DBPR CPA Lookup. At Uncle Kam, we specialize in Orlando small business tax strategy and proactive planning. Schedule a consultation to see how we can save you thousands in 2026 and beyond.

Uncle Kam in Action: Orlando Case Study

Challenge: Sarah operated her Orlando-based marketing agency as a sole proprietorship for three years, earning approximately $180,000 in annual net profit. She paid $27,540 in self-employment taxes (15.3% × $180,000) on top of federal and state income taxes. With no retirement plan and minimal deductions beyond home office and software subscriptions, she felt like she was handing too much money to the IRS every April.

Uncle Kam Solution: We conducted a comprehensive tax strategy session and implemented the following changes for tax year 2026:

• S Corp Election: We filed IRS Form 2553 to elect S Corporation status, structuring Sarah’s compensation as $80,000 W-2 salary plus $100,000 in distributions. This reduced her self-employment tax liability from $27,540 to $12,240 (15.3% × $80,000), saving $15,300 annually.
• Solo 401(k) Implementation: We set up a Solo 401(k) allowing Sarah to contribute $23,000 employee deferral + $20,000 employer contribution = $43,000 total, reducing taxable income by $43,000 and saving an additional $14,190 in federal taxes (33% bracket).
• Section 179 Expensing: Sarah purchased $25,000 in new computers and office furniture, immediately expensing the full amount under Section 179 (saving $8,250 in taxes at her 33% bracket).
• Health Insurance Deduction: We ensured her $12,000 annual health insurance premiums were properly deducted as an above-the-line deduction, saving $3,960 in federal taxes.
• Quarterly Tax Planning: We implemented automated quarterly estimated payments to avoid penalties and improve cash flow management.

Results: Total tax savings: $41,700 in year one. Sarah now has a retirement plan projected to grow to $1.2M+ over 20 years, improved cash flow predictability, and peace of mind knowing her Orlando CPA is proactively managing her tax strategy year-round. “Uncle Kam didn’t just prepare my taxes—they transformed my business finances,” Sarah says. “I wish I’d made these changes three years ago.”

See more Orlando client success stories and learn how we help service-based businesses and e-commerce companies keep more of what they earn.

Next Steps

Ready to optimize your Orlando business taxes in 2026? Follow these five steps to get started:

1. Schedule a tax strategy consultation. Meet with an Orlando CPA before Q3 2026 to review your entity structure, estimated tax payments, and deduction opportunities. Book your consultation with Uncle Kam here.
2. Gather your financial documents. Organize profit and loss statements, balance sheets, prior-year tax returns, and a list of major expenses or purchases planned for 2026. Clean books make tax planning faster and more accurate.
3. Evaluate S Corp election. If your net profit exceeds $80,000, model the potential self-employment tax savings from electing S Corporation status. Remember: the deadline is March 15, 2026 for tax year 2026.
4. Implement quarterly tax planning. Set calendar reminders for April 15, June 16, September 15, and January 15, 2027. Work with your CPA to calculate payments and adjust as income fluctuates throughout the year.
5. Maximize retirement contributions. Open a SEP IRA or Solo 401(k) before December 31, 2026 to reduce taxable income and build long-term wealth. Your Orlando CPA can recommend the best plan for your business structure and income level.

Don’t wait until April 2027 to think about taxes. Proactive planning throughout 2026 will save you thousands of dollars and position your Orlando business for sustainable growth. Explore our tax advisory services to see how we help small business owners navigate complex tax law changes and keep more money in their pockets.

Orlando Small Business Tax FAQs

What are the key tax deadlines for Orlando businesses in 2026?

Federal deadlines: S Corporation and Partnership returns due March 16, 2026 (extended deadline: September 15, 2026). Individual and C Corporation returns due April 15, 2026 (extended deadline: October 15, 2026). Florida annual report deadline: May 1, 2026 for corporations and LLCs. Quarterly estimated tax payments due April 15, June 16, September 15, 2026, and January 15, 2027.

Can my LLC be taxed as an S Corp in Florida?

Yes. File IRS Form 2553 by March 15, 2026 to elect S Corporation status for tax year 2026. Your LLC will remain a Florida LLC from a legal/compliance standpoint but will be taxed as an S Corp federally, allowing you to split income between salary (subject to payroll taxes) and distributions (not subject to self-employment tax). Consult an Orlando CPA to ensure you meet eligibility requirements and structure reasonable compensation correctly.

What’s the Orlando sales tax rate in 2026?

6.5% (combined state and local rate). This includes 6% Florida state sales tax plus 0.5% Orange County discretionary surtax. The rate applies to most tangible goods and certain digital products. Professional services (consulting, accounting, legal) are generally exempt, but software-as-a-service (SaaS) may be taxable depending on how it’s delivered. Always consult the Florida Department of Revenue or your Orlando CPA for product-specific guidance.

How can I minimize IRS audit risk in 2026?

Keep immaculate records with receipts, invoices, and bank statements for all business expenses. Segregate business and personal expenses completely (use dedicated business bank accounts and credit cards). Report all income accurately—the IRS receives 1099 forms from your clients and will flag discrepancies. Avoid excessive round-number deductions (e.g., exactly $10,000 for travel). Collaborate with a CPA for quarterly reviews to catch errors before filing. If you’re self-employed, ensure home office deductions meet IRS exclusive-use requirements and vehicle logs are contemporaneous.

Does Florida have state income tax for business owners?

No, Florida has no personal income tax, making it one of the most tax-friendly states for business owners. Sole proprietors, S Corp shareholders, and partnership owners pay zero state income tax on pass-through income (you’ll only pay federal income tax). However, C Corporations pay 5.5% Florida corporate income tax on net income. This is a significant advantage for Orlando entrepreneurs compared to high-tax states like California (13.3% top rate) and New York (10.9% top rate).

What happens if I miss a quarterly estimated tax payment?

The IRS charges an underpayment penalty of approximately 0.5% per month (6% annualized) on the shortfall, plus interest at the federal short-term rate plus 3% (currently around 8% total). If you miss Q1 and Q2 payments but catch up in Q3, you’ll owe penalties on the earlier periods. To avoid penalties, use the safe harbor rule: pay at least 90% of your 2026 tax liability or 100% of your 2025 tax liability (110% if your 2025 AGI exceeded $150,000). Your Orlando CPA can help you calculate catch-up payments and minimize penalty exposure.

Where can I get trusted IRS sources?

See IRS.gov for federal tax forms, publications, and guidance. The IRS newsroom publishes updates on tax law changes, inflation adjustments, and compliance reminders. For Florida-specific tax information, visit Florida Department of Revenue. Your Orlando CPA should monitor both sources and proactively alert you to changes that affect your business.

Related Resources

• IRS Newsroom – Latest tax law updates, inflation adjustments, and compliance guidance
• IRS Publication 535: Business Expenses – Comprehensive guide to deductible business expenses
• IRS S Corporation Resources – Requirements, benefits, and filing instructions
• Florida Sales and Use Tax – Florida Department of Revenue guidance on sales tax compliance
• Uncle Kam Tax Strategy Services – Proactive tax planning for Orlando small businesses
• Real Estate Investor Tax Planning – Specialized guidance for Orlando rental property owners and flippers
• LLC vs S Corp Guide for Orlando Businesses – Entity selection comparison with dollar-specific examples
• 2026 Orlando Small Business Tax Checklist – Line-by-line deduction guide and compliance calendar

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Last updated: February 12, 2026. Tax laws change frequently—cross-reference with the IRS newsroom and consult your local Orlando CPA for personalized guidance. This content is for informational purposes only and does not constitute tax, legal, or financial advice.