Resulting from Florida’s amiable tax climate – which remains stable and has progressive tax legislature – the Sunshine state has become an attractive location for new and expanding businesses of all industries and sizes.
Prospective business owners cite favourable taxes as being ranked highly among their top considerations when searching for a location to set up their company, resulting in Florida being the state of choice for many new companies.
Let’s look in a little more detail at some of the tax advantages for small businesses in Florida:
Tax advantages in Florida
There is no personal income tax in the entire state of Florida, and a wide range of tax benefits are available to many businesses, here is a list of many aspects of running a business that are not taxed:
- There is no corporate franchise tax on capital stock
- state-level properties are not taxed
- goods made or produced within the state of Florida, that will be exported out of state
- No sales/use tax on co-generation of electricity
- Electricity used in manufacturing processes is not taxed
- Taxes are not applied to the labor aspect of research and development of expenditures
- Natural gas used in manufacturing processes is not taxed
- Space activity on a commercial scale is tax free
How such tax advantages can even help with employees
Many small business owners in Florida say that the favourable tax climate even allows them to attract and retain a higher standard of employee.
With no tax problems to worry about, business owners can make more informed and positive choices about their staff, and attracting talented employees is made even easier if they’re able to offer an attractive pay package because of lower taxes.
It enables employers to meet increasing minimum wage standards with ease, and employees are naturally more content if they’re paid fairly, making it a winning situation for both parties.
Why you might want to consider starting a business in Florida
Many owners of small businesses in Florida state that they’ve received generous tax benefits, they have access to several large markets, and the ease of being able to transport goods by sea, air and ground, has made running their business much easier.
There is also the tourist industry to consider in Florida, which continues to be a real boom for local businesses, and brings in out of state and overseas tourists, all year round.
With its thriving economic growth and lack of state regulations to hold businesses back, coupled with the quality of life, Florida is perhaps hard to beat when it comes to attracting business owners and employees alike.
Why it’s still important to hire an accountant for your small business in Florida
While there may be many tax advantages for small businesses in Florida, there will of course still be some taxes to pay and regulations to comply with, and hiring a professional bookkeeper or accountant is the best way of staying within the law and not incurring hefty penalties. Not to mention all the other aspects of running a business that they can assist you with you, such as helping find ways to increase profits and ensuring that payroll is carried out in a timely and efficient manner.