Many company executives enjoy spending time in their second homes in Florida. However, if they visit their winter home for an extended period (or just spend an extended time at a resort or timeshare), this might trigger a Florida corporate income tax obligation. This problem exists for closely held companies as well as public companies. This potential Florida tax problem is also a risk for corporate investors in private equity or hedge funds if managers of these funds maintain residences in Florida.

The reason for this potential problem is a Florida tax regulation stating that a corporation will be presumed to be doing business in Florida if a key officer resides in the state for three months in the aggregate within a 12-month period (Rule 12C-1.011(h) Fla. Admin. Code). If the company is doing business as a result of the presence of key officers in the state, this would require the corporation to file a Florida corporation income tax return. As a result, if a key officer visits his Florida home for three months or more during any 12-month period, the law will presume that the company is required to file a Florida income tax return, even if the company has no office or assets in the state.