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.
How Safe is Banking in the USA?
You may have heard some recent discussion about the United States banking system, bank collapses and the safety of your money. With these stories dominating the news, you may also find yourself wondering, “Is my money safe in a US bank?”
Despite the recent news, yes, your money is very safe in American banks. There are a few reasons why you can feel very confident keeping your money in a US bank:
Your Money is Insured
Customers of the US banking system are protected by the Federal Deposit Insurance Corporation, which you’ll probably hear referred to as the FDIC. The FDIC was created in 1933 to help protect money held in banks at the height of the Great Depression.
Since the FDIC was created, according to a CNBC news story from March 2023, no customer of an FDIC-insured bank has ever lost their funds due to a bank failure. Even if a bank is forced to close, you can rest assured that you will get your money back.
US Banks Don’t Just Disappear
You may have heard that two large banks in the USA recently failed, including the very large Silicon Valley Bank. When a US bank goes out of business, though, it doesn’t simply cease to exist. Instead, the capitalism persistent throughout the USA comes into play, and other financial institutions purchase the assets and accounts of the failed bank.
When Silicon Valley Bank collapsed in March 2023, its assets and customer base were acquired by a smaller bank, First Citizens, headquartered in North Carolina. According to a March 2023 article in the New York Times, all customer accounts at the former Silicon Valley Bank were successfully transferred to First Citizens Bank, and customers did not lose any of their deposited funds.
Bank Failures are not Common in the USA
If you’re wondering why the failure of a bank in the USA is big news, it’s because it doesn’t happen very often. In March 2023, USA Today reported fewer than 1% of FDIC-insured banks have failed in the last 10 years.
An American bank account is critical to successfully operating your business in the USA. Fortunately, you can be very confident that your funds are safe when you deposit them in a US bank.