Whether you’re a current resident considering starting your company or you are thinking about relocating to South Florida to launch your business or move its base, there are some compelling reasons to choose the Sunshine State.
Low Tax Burden and Other Economic Advantages
As an individual, you won’t pay state income tax. Beyond that, the state offers favorable tax laws for businesses as well. Florida-based corporations do not have to pay more than 5.5%. New employers will pay just 2.7% in unemployment tax. It can be advantageous to businesses to move their center of operations to the state despite the expense associated with relocation. The low tax rate is likely to remain stable because of hospitality taxes.
Some business expenses, including newly purchased equipment, are exempt from the state’s 6% sales tax rate, which runs just above 7% on average when local taxes are added in. This could mean that if you are considering running an electric fleet, you could avoid paying taxes on electric car chargers and other equipment costs although it is best to verify this before moving forward with any new purchases for your company. You can also review a guide explaining costs, and how to install EV chargers, and charging networks.
Medicine, groceries, and other necessities do not have sales tax added. The cost of living in Florida is higher than the national average but lower than what you would pay to live in many other major entrepreneurial centers, such as the Bay Area or New York City.
By September 2026, the state minimum wage could be at $15 per hour, but again, this is in line with what is happening in other important areas for entrepreneurial activity.
Tourism Economy
With Florida being one of the must-see places to visit in the country, there will always be people in and out. Depending on the nature of your business, the large influx of tourists can mean boom time and a chance to expand your customer base.
You might also need to prepare for a low season, but thanks to the excellent climate, people are eager to visit South Florida all year round. In spring and summer, tourism from more northerly areas slows, but there will still be visitors from nearby states. Hurricane season isn’t all bad news if your company is in a sector such as construction or roofing or if you plan on opening a grocery or hardware store.
Funding
Getting access to the capital in South Florida is not a problem if you have the right idea and can make the right connections. While not a traditional home of venture capitalists and angel investors, this sector of the state’s economic scene has grown substantially in recent years, and eager startup founders can access incubators that offer resources, funding, and more.
As technology continues to make the world smaller, business owners will still be able to connect with resources nationally and globally. Openness to remote workers may expand the available talent pool, or the location itself may attract talented employees. Most businesses in the state are small ones. Among the top industries, there are real estate, professional services, construction, scientific services, transportation, and technical services.
Quality of Life
You want to start your company in a place where you also actually want to live, particularly if you’re relocating your family there specifically for that purpose. The good news is that you’ll find a much better quality of life in Florida than you would in many other entrepreneurial hotspots. If you’re tired of business wear, you’ve come to the right place. Although Miami may be fashion-forward, much of the rest of the region is casual, and you might get away with doing business in the gear you can wear down to the beach later. The vibe in general is a laid-back one.
There’s also the fact that you get many of the things that people pay thousands of dollars to experience on vacation. Not every town in on the beach, but you’ll never be too far from one, and there’s an enormous amount to do both indoors and outdoors. That includes a vibrant and eclectic food culture that offers everything from seafood to Cuban dining and much more.
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