Florida Benefits: Buying a Business

Buying property and businesses in Florida is a popular trend since the late 2000's. Individuals and families are traveling from the Midwest and Northeast United States, Canada, South America, United Kingdom, Germany and other parts of Europe to vacation to Florida. What are they buying as souvenirs you wonder? Property and businesses.

I would like you to know that buying property or starting a business in Florida is very possible. It's a dream for many and a dream fulfilled for many more.

Here is a short list of benefits to think about:

Taxation

According to the Tax Foundation (taxfoundation.org)*, Florida has been ranked 5th Best Business Tax Climate in the US since 2012. The most intriguing stats in breaking down the rank are:

  • #1 for Individual Income Tax Rank - no income tax.
  • #3 for Unemployment Insurance Taxes (UI)

No Individual Income Tax

=Florida is one of seven states in which its residents pay zero tax on their income. This is a huge benefit for the obvious fact that you are saving a substantial portion of your income, but it also has the effect of simplifying your overall tax strategy. For the record, Califonians pay 13.3% of their income to in State income tax.

No State Level Property Tax

Property (Real Estate) tax in Florida is assessed at the local level (by county). There are many tax exemptions to be aware of, so when you purchase property it is critical to speak with a knowledgeable attorney or accountant that can ensure you take advantage of all applicable exemptions. Also, paying property tax early provides additional savings as well.

Low and Simplified Unemployment Insurance.

Unemployment Insurance (UI) is a social insurance program to which all states contribute. The program supplies benefits for individuals that are unemployed through no fault of their own. Florida has one of the lowest rates of UI tax, because of it's low maximum tax rate.

Comparatively Low Sales Tax

At 6% (plus local tax of up to and additional 1.5%), Florida has one of the lower sales tax rates compared to the 45 states that collect sales tax. Tennessee and Arkansas have the highest rates, at this time over 9%. Sales tax is applied to most goods purchased in the Florida, excluding food. It is similar to the VAT of Europe and GST of Canada.

LLC Tax Benefits

Forming an LLC for your business and/or real estate investments provides owners with a “pass through” tax status. This means business owners are not taxed twice like a C corporation. Profits and loses for LLC members are reported on their individual tax returns.

Business

Not Just Hospitality:

Florida is one of the most attractive states to visitors. This means that a lot of people pass through to spend money. Service, retail and hospitality are obvious thriving industries in Florida, but Florida is also the 2nd fastest growing for tech jobs. Florida cities, like Tampa and Orlando have focused on attracting corporations to open office and have had success because of our low taxes and available workforce.

Inexpensive:

Forming an LLC in Florida is very affordable. To make sure, it is done properly and maximize the protection of your LLC, make sure to speak with an attorney when creating your LLC.

Location:

Florida may seem like it's far from the action, but our state is attractive to businesses around the world. Tampa, Orlando and Miami have major international airports making it easy to find a one way ticket around the world. Of course, Florida is a welcoming place so you may find that you never have to leave for business.  The Ports are also excellent sources of commerce by allowing easy access for imports and exports. 

Quality of life:

Living in Florida, especially Sarasota and the greater Suncoast, is all about lifestyle. I'm going to ask you a few simple questions:

  • When you're done reading this article, do you want to go to the beach?
  • Do you want to finish your emails on the water watching a sunset?
  • How would you like to unwind with a live performance at the Opera or Theater?
  • Any interest in enjoying your evening after work outside?

Is Florida the best place to own a business? I'm afraid that question is too rhetorical for even the best attorney to answer. However, we encourage you to ask business owners in Florida how much they enjoy the business life here. We wouldn't want our business anywhere else.

Give Jo Ann a call to get the whole picture and all the benefits of owning a business and property in Florida.

Click here for more information about buying in Florida

 

*http://taxfoundation.org/article/2015-state-business-tax-climate-index

 

Jo Ann Koontz

joann@koontzassociates.com 941-225-2615