A businessman preparing for doing business in Florida.
Florida is known as the Sunshine State because of the excellent weather here all year long. However, this nickname also extends to the great economic climate that's welcoming many businesspeople with the promise of sunshine showering their business endeavors in Florida. Of course, doing business in Florida doesn't necessarily guarantee success. However, thanks to some specific benefits that this state provides, doing business here means that your chances for succeeding will be higher. Before you begin browsing listings, let us take a look at some of the biggest advantages that Florida provides when it comes to businesses - both small and large.
The first advantage of doing business in Florida that we'll discuss involves incentives offered to startup companies that are settling down in Sunshine State. In order to help the growth of such companies, Florida's officials have come up with several incentives, the most important one being a program called "Targeted Industry Incentives".
This incentive is divided into two separate programs that can be equally useful, depending on the kind of startup you're founding. The first one is called Qualified Target Industry Tax Refund, or QTI. This program offers substantial refunds to startups that are creating new, well-paid job openings, especially in specific industries that are deemed to be highly valuable. With QTI, you can expect to save about 3,000 dollars in refunds for all the new jobs that your company has provided in the city that you're situated in. If your startup has also created new jobs throughout the county, you can expect to save twice as much money.
Florida’s helpful startup incentives are aimed at growing businesses.
Alt text: Increasingly larger piles of coins, representing company growth.
The second program is called Capital Investment Tax Credit, or CITC. This incentive is basically a credit you get once a year against tax for corporate income, which will be very useful for startups competing in industries with a need for large capital. You can receive this credit for as long as 20 years.
Tax benefits when doing business in Florida
Florida is widely known as a state that's offering some excellent tax benefits, both for businesses and for individuals who have moved here with the help of the reliable professionals working for spydermoving.com. Some of the more important tax benefits in Florida include:
- Limited partnerships and S-corporations are exempt from corporate income tax altogether.
- The capital stock is not included in the corporate franchise tax.
- Business inventories are not included in the property tax. Goods-in-transit are also exempt from this tax for six months.
- Sales and use tax don't include goods that were made in Florida for sale abroad.
With great tax benefits, doing business in Florida is easier than in the majority of other states.
Alt text: Taxes, a calculator, and a pen.
Some five years ago, doing business in Florida was hard for new companies due to the lack of investment capital. Nowadays, however, more and more private investors and venture capitalists are investing their resources in the Sunshine State. Florida's economy is extremely stable (in fact, this state's economy is the fourth largest in the USA), and the investors are not missing the chance to profit due to the benefits of such a healthy economy.
In practice, this means that there are several highly stable economic hubs in Florida that make it easy both for startups to thrive and for investors to finance the businesses of their choosing. These hubs offer a cost-effective opportunity for private investors to get promising startups going, so if you're planning on starting such a startup, this is all you need to know about Florida (apart from the incentives for startups that we've already talked about).
However, this is not the only way for companies to receive funding in Florida. About 150 banks operate here; with their assistance, combined with the help from private investors, finding capital is easier in Florida than in most other states in the USA.
Many tourists may increase sales
Thanks to its many qualities, particularly the great weather, the Sunshine State welcomes many tourists who come flocking every year. Depending on the type of company you run, this can have a positive influence on your income, as all those tourists can be great for business.
However, while this doesn't come with any real disadvantages, you should still be prepared and plan for slower months that will ensue during the off-season. An influx of tourists means that your business will be thriving more than it would in other parts of the country at the same time. This is usually the period between Thanksgiving and Easter holidays, when Florida offers much warmer weather than most other states.
Tourists, attracted by the fine weather, can be a great boon to doing business in Florida.
Alt text: A beach in Fort Lauderdale, Florida.
However, once it gets hotter, the tourists will return to their respective states, eliminating the advantage that Florida has during the colder months. Adapting to this kind of seasonal economy can pose a challenge for some business owners. Be prepared for earning less money at this time and plan accordingly in order to fully capitalize on the benefits that the tourist season provides.
Finally, let us conclude by praising Florida's excellent infrastructure. Namely, this state is a very efficient transportation hub, offering quick transport of goods from the USA to other continents such as Europe and South America. Several airports, shipping ports, and a ramified highway make trade much easier both on a local and on an international level.
And while we are talking about trade, plenty of companies from all parts of the USA (as well as from abroad) have set up their headquarters in Florida. Thanks to the easy means of transportation, many companies have set up their manufacturing, warehouse and distribution divisions here as well. With such advantages, doing business in Florida is highly beneficial, which is a fact that many companies have grasped.
In this post, we have focused on all the business advantages that Florida provides. Elaborating on all the quality of life benefits would require several different posts. For now, it's enough to say that there are many of them, and the weather is just the tip of the iceberg.
With these two factors combined, it is easy to see that doing business in Florida could easily turn out great for your company. If you decide to do business here, begin your home search and get ready to enjoy some sunshine!