As of 2022, the state of Florida is ranked as the fourth-largest economy in the United States. From Theme-Parks to aviation and agriculture, the Sunshine State has a diverse, multi-segment, and profitable economy.
In this article, you will discover whether Florida is a good state to buy a business.
Is Florida a Good State to Buy a Business? – Full Overview
No Income Tax
Dealing with taxes is never a pleasant experience. While it is impossible to avoid taxes completely, Florida offers a lower tax burden than most states nationwide. Entrepreneurs residing in Florida are not subject to personal income tax.
Hence, they can save a significant portion of their income that would be used to pay the amount owed to the government. Additionally, the lesser the taxes, the less complex is to set up business tax strategies.
No Property Tax
While Florida residents are still subject to property taxes at the federal level, the same burden does not exist the state level. Within state jurisdiction, property taxes are assessed at the county level.
Considering real estate taxes depend on the county where the property is located, there are several tax exemptions available for residents who know to take advantage of them. it is fundamental to consult with an expert attorney to identify all applicable exemptions.
Lower Sales Tax
Compared to most states nationwide, Florida has one of the lower sales tax rates. As provided by the Florida Department of Revenue, sales tax is “added to the price of taxable goods or services and collected from the purchaser at the time of sale.”
The rate applied to most taxable goods or services is 6%, which exceptions applied to retail sales of new mobile homes (3%), amusement machine receipts (4%), rental, lease, or license of commercial real property (5.5%), and electricity (6.95%).
Tax Benefits for LLCs
Florida entrepreneurs can choose between several business structures to form new companies, including corporations, partnerships, and limited liability companies (LLCs).
LLC owners (also referred to as “members”) enjoy several benefits, including the ease to register the company, “pass-through” taxation, and superior flexibility in terms of management.
Another fundamental element of Florida LLCs is the low cost to form and maintain. If done properly, an LLC maximizes protection against potential business liabilities and results in lower maintenance costs than other business structures.
Massive Customer Influx
Between January and March 2022, the Sunshine State welcomed 36 million visitors. These numbers demonstrate the massive influx of people willing to consume goods and services while visiting the state, which boosts business operations and profitability.
The “flagship” segments in the state continue to be the retail, service, and hospitality industries, but the whole local economy benefits from this movement.
Strategic Location
Purchasing an existing business in Florida is an excellent move not only for US entrepreneurs, but foreign investors as well. The state offers multiple choices of international airports and Ports, allowing business people to enjoy efficient sources of commerce and easy access to imports/exports.
Do You Want to Enjoy the Benefits of Owning a Florida Business? – Immediately Seek Expert Legal Guidance
Waste no time with uncertainty. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing [email protected] for an individual consultation.
