Why Florida has Become a Popular Location for Entrepreneurs
Over the past few years, Florida has become a hub for business owners alike flocking to get started in the Sunshine State. The range of appealing factors sparking the attention of entrepreneurs comes down to a few key points that make Florida such a popular choice for business locations.
As a business owner, one would be looking at the best scenario in which to not only start but also grow their business. Taxes play a big role in the decision, and this is a major plus for the prospects of Florida. The state offers benefits for both people and businesses bringing income into the economy and making it highly appealing for prospective individuals.
Florida is one of the nine states in the U.S. that don’t have an income tax, partly being what makes the location as coveted as it is. Applicable on a personal level, business owners themselves aren’t liable to pay state income tax. Furthermore, a 5.5% state income tax is relevant to the likes of C corporations, namely the larger more traditional corporations. In turn with most small businesses getting started being S corporations (s corps) and limited liability companies (LLC), they won’t be liable for paying state income taxes either.
Starting out is daunting for most entrepreneurs looking for an in, but with the right guidance, the process becomes clearer. An easy and comprehensive way to get started is by following guidelines to understand the requirements, restrictions, and actual steps involved.
The Really Useful Information Company (TRUiC) offers thorough business guides on topics across the board, including Florida S corp filing requirements to get the process started. Electing Florida S corp status allows for many further benefits for businesses to take advantage of, besides those already applicable by being located within the state.
Not to be confused with being a business structure, S corp status is a tax classification of the Internal Revenue Service (IRS). In turn, it reduces the respective tax burden of a business, which is an advantage from various angles. As with most choices of this nature, there are certain factors to keep under consideration whether this is the best strategy for your business.
The process of electing to become a Florida S corp is relatively easy and can be done through the forming of an LLC or a corporation. After naming the LLC, choosing a Registered Agent, and filing the Articles of Organization, the last steps are to create an Operating Agreement and get the employee identification number (EIN) upon filing IRS Form 2553.
Florida hosts the nation’s fourth-largest economy, and the booming market for small businesses makes up the majority. With small businesses employing 3.6 million people and making up a substantial 99.8% of the total number of businesses in Florida, the numbers speak for themselves in the state’s popularity.
Besides the various advantageous tax benefits both personally and professionally, Florida holds the appeal of investment too. Entrepreneurs reap the benefits of access to substantial capital for investments from a range of investors. This creates a booming environment for small businesses to start, grow and prosper within as more opportunities arise. Overall, Florida provides a climate that is undoubtedly pro-business encouraging investment and further fueling its economy and that of the country as a whole.
A counterpoint that may appear is the state’s higher cost of living when compared to other states. However, when looking at various economic centers across the United States, Florida is significantly more affordable. With just a 6% sales tax, individuals see the added benefit of being able to save on day-to-day goods and services, which go further in the long run. Certain business expenses such as equipment for manufacturing, as well as prescription medication and groceries are not subject to sales tax within the state.
Naturally, taking advantage of such fitting opportunities presented by the prospect of locating to Florida is a no-brainer for so many individuals out there. With advantages for both everyday citizens and entrepreneurs starting out, the state presents ideal circumstances that support the influx of businesses. This creation of an environment in which small businesses are able to flourish and grow sustainably is extremely invaluable in the long term.
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