Why is Florida a popular destination in the USA? Florida is well-known for its beaches, amusement parks, scenic views, and orange groves. The Florida Everglades, which are in this region on the East Coast, are well-known for their natural splendor. Due to its profusion of sunshine and generally milder subtropical temperature, it is known as the Sunshine State. But beyond these, there are a lot more to look forward to especially in the business sector. So, why start a company in Florida?
Businesses in Florida benefit from tax breaks and have access to a lot of venture capital and angel funding. Although the cost of living in Florida is higher than in some other states, it is still less expensive than in other significant U.S. economic centers. In addition, according to data from the Bureau of Economic Analysis, the state has the fourth-largest economy in the country.
These encouraging economic indicators are good news for the state and here are some more reasons you should start your company in Florida:
1. Low tax structure
Florida is known for having a moderate overall tax load which became a significant factor that drives many individuals and businesses to relocate to the state. Furthermore, it has no inheritance or intangibles state taxes. Compared to other states, it has minimal corporate and sales taxes. Florida is also one of the nine states without a personal income tax, which makes it a very desirable site to start a company, particularly pass-through businesses like LLCs and S corporations.
Due to its reliance on tourism-related industries like theme parks, hotels, and resorts, Florida can afford to maintain low tax rates. Additionally, local governments have the authority to impose tourism fees.
2. Welcoming state leadership and local government officials
Florida’s government has been actively luring business executives to start a company in the state. The state’s government even back creative public policies to promote product development and research. This entails establishing legal frameworks for the testing of unmanned vehicles, facilitating easier access to professional certificates and licenses, and allowing the testing of novel fintech products without the typical burdensome constraints. The state has distinguished itself by taking a warm and friendly stance, which has had a significant impact on drawing new firms to the region.
3. Workforce and talent attraction in a competitive labor market
Florida is home to the third-largest workforce in the US, one that is culturally and linguistically varied, and its labor force is more reasonably priced than that of other top high-tech states because of a favorable tax system and lower company expenses.
4. Good weather, quality of life, and infrastructure
Florida has one of the nicest climates in the country, which is no secret. Many choose Florida’s warm weather and blue skies because new policies on remote work allow workers to work anywhere they like. Additionally, the state is home to some of the top dining establishments, tourist destinations, and quality of living in the country. The fact that the state managed to reopen for business before other significant business centers while resolving the COVID-19 situation has been a significant contributor to the influx of investors and people in the past few months.
5. Capital availability
In Florida, entrepreneurs have access to enough financing to start and expand their companies. Angel investors and venture capitalists have made large investments in the state.
Investors have focused their attention on the Sunshine State in recent years. Florida now has several economic centers that are thought of as startup and innovation incubators.
Business-Friendly Cities in Florida
Florida offers a variety of centers for migrating businesses; listed below are the top locations you should take into consideration if you like to start a company in Florida, along with the statistics that make them so appealing to corporate America.
| Tax | Tampa | Fort Lauderdale | Jacksonville | Orlando |
|---|---|---|---|---|
| Corporate Income Tax | 5.5% | 5.5% | 5.5% | 5.5% |
| County Sales Tax | 1.5% | 1% | 1.5% | 0.5% |
| Personal Income Tax | 0% | 0% | 0% | 0% |
| Estate/Inheritance Tax | 0% | 0% | 0% | 0% |
| Cost of Living | 94.6 | 120.8 | 94.3 | 99.3 |
| Price per square foot for Class A Office Space | $33 | $45 | $25 | $28 |
Florida’s persistent growth
Although the COVID-19 outbreak may have been the impetus for some businesses to relocate to Florida today, this movement has been gathering steam for years. Florida’s sensible tax policy, friendly government, high standard of living, and promising future will probably keep businesses flocking to the state for many years.
Planning to start your business?
It’s important to prepare in advance when relocating between states. Businesses and individuals considering a move should get qualified legal guidance due to the various tax systems and other factors that have long-term effects. Our team at Bolder Launch US is made up of highly skilled and experienced professionals who can help businesses and individuals with legal assistance and launch their businesses in different countries and states. Ready to start a company in Florida? Consult with our Launch crew for free.
This guide is part of Company Formation in our Launch Guide.
