5 Reasons to Incorporate in Florida, USA
Florida is known as the sunshine state, and millions of people flock there from around the world every year to take advantage of the gorgeous beaches, world-class theme parks and year-round warm weather.
What many tourists don’t realize is that Florida is also extremely business-friendly, and a first choice for many business owners who want to incorporate. The allure of incorporating in Florida is especially true for entrepreneurs from Central and South America, as Florida is renowned for its deep Latin culture and business connections.
If you’re considering Florida as a place to incorporate your business, here are five reasons why the Sunshine State may be the best home for your new enterprise:
Low Business Income Taxes
Florida, which has no state income tax for individuals, and the corporate income tax rate is exceptionally low. According to the Florida Department of Revenue, the corporate income tax is only 5.5% as of 2023, and applies only to earnings generated inside of Florida. This low tax rate is a tremendous advantage, letting you keep more of your money. Even better, the state offers numerous tax incentives and credits for corporations, further reducing your corporate tax burden.
Florida’s numerous tax incentives are just the beginning of the extensive measures the state has taken to attract business. Many regulatory and filing requirements common in other states have been reduced or eliminated, and the state-run SunBiz website facilitates a simplified, easy-to-use filing of most corporate documents including articles of incorporation and annual reports.
Gateway to Latin America
With a sizable Latin population and strategic location close to Central America, Florida is perhaps the most accessible state for Latin entrepreneurs. Whether you’re from Cuba, Venezuela, Colombia, Mexico, Peru or any other Latin-American nation, Florida is a great choice for your new business. Many business resources are available in both Spanish and English, and the state’s location–just 70 miles north of Cuba and only a short flight from Mexico–make it an ideal spot for Latin entrepreneurs to set up shop. Florida is surrounded on three sides by water–with the Gulf of Mexico to the west and the Atlantic Ocean to the East–so it’s especially ideal for import and export businesses.
World-Class Tourism and Hospitality
If your business is in the tourism and hospitality industry, you’ve likely already considered Florida for your base of operations. Orlando, located in the center of the state, is one of the top tourist destinations in the world, and many major hospitality companies maintain a presence or headquarters there. This high concentration of tourism businesses makes Orlando and Central Florida a destination for networking for hospitality professionals.
Limited Liability Protection
Like many states, Florida offers extensive protections for corporations and limited liability companies. Florida goes a step beyond, though. Under Florida statutes, debts and liabilities are the sole responsibility of the company; according to corporate attorney Kelly Roberts, this means the owners, shareholders and members of a corporation or LLC are not responsible for the business’s debts even if the company dissolves. This exemption is another example of the Sunshine State’s business-friendly environment.
The benefits of incorporating in Florida are many, and they can be very appealing, but it’s important to consult an experienced incorporation expert before launching your USA corporation. A knowledgeable incorporation professional can help with a comprehensive assessment of your specific business needs, industry requirements, financials and goals to help you select the right incorporation path. My USA Corporation has extensive experience, and you can get started online at any time.
New Series: Incorporating in Your USA State
Doing business in the United States holds a number of advantages, and your USA business can be your key to success. In general, incorporating your business in the United States is a straightforward affair, but each state has its own nuances, requirements and regulations that may affect how you go about the process.
If you’re coming to the USA from another country, it’s helpful to first understand how the country and states are structured. The United States, as a nation or country, is comprised of 50 individual states. Each of these states operates independently, with state and local governments that make the state function much like a country of its own. If you’re coming to the USA from Europe, for example, it’s helpful to think of the United States much like the European Union, with each US state being less like a state and more like a European country.
In addition to the federal rules and regulations governing business throughout the entire United States, each state has its own laws regarding incorporation and business operations. Some states are very loose with their regulations, offering generous tax structures and operational guidelines, while others more closely regulate how your business operates. Each year, several US magazines publish lists of the easiest and most difficult states for business; the 2023 Forbes list is available here, but your MyUSA Corporation advisor can help you find the perfect fit for your business’s specific needs.
Some states make it very easy to incorporate, with incorporation possible in just a few minutes at the state’s website. Other states, in contrast, require extensive paperwork filed either in person or by mail. Most states will require at least a business name (known as a “Doing Business As,” or DBA) and a business license, and many also require you to obtain an Employer Identification Number, or EIN, from the Internal Revenue Service before you launch your business. Beyond these basics, though, requirements can vary significantly from state to state.
In the following series from MyUSA Corporation, we will explore what it’s like to incorporate in each US state. This series will help you understand the nuances of starting a business each state, and provide valuable resources to get you started.
Regardless of how easy a state makes it to launch your business, though, a trusted and knowledgeable advisor will be key to ensuring you have the right structure and tax status to avoid problems arising later. We always encourage you to consult with your MyUSA Corporation advisor before filing any paperwork with a state. For more information, or to get started, you can schedule a free consultation at any time.