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Incorporating your business in Florida has several advantages over incorporating in most other states. Most people think of Florida as a place filled with sunshine, palm trees, and dazzling winter vacations. But besides being a top tourist destination, Florida is also an extremely attractive place to do business.
If you own your own business, or if you're considering starting one, you owe it to yourself to find about the benefits of a Florida corporation.
To begin with, the State of Florida has no personal income tax. And while regular corporations are levied with a 5.5% tax on federal taxable income over $5,000, if you incorporate your Florida business and choose the "S" status, you can have your cake and eat it too!
Florida "S" corporations aren't taxable entities. This means they're not required to file state income tax returns after the first year. The result? You can reap the benefits of a corporation, yet pay no tax!
But there's more...
Unlike most states, Florida doesn't have minimum capital requirements for incorporating your business. So if you're just starting out and don't have a lot of money, you can still take advantage of incorporating without having to dump a lot of cash into your company. Some states require that your corporation be funded with a minimum of $1,000 in capital. Florida does not.
Another benefit of incorporating in Florida is that it's simple to do and you don't have to involve many people in the process. For example, most states require your corporation to have more than one director and a different person for each corporate officer.
But in Florida, the Director, President, Secretary, and Treasurer can all be the same person! This makes it very easy for a small business to take advantage of the benefits of incorporation without all the hassle that usually goes along with it.
Florida is very much becoming a “business friendly” state. It already has some of the lowest annual fees and fewest corporate reporting requirements in the US. And the best part of all? The shareholders, officers, and directors of a Florida corporation can remain anonymous if they so desire!
The Florida Secretary of State doesn't require a list of the names or addresses of directors, officers, or shareholders to be listed in the articles of incorporation. Since the State doesn't keep a record of who owns or controls your corporation, you can conduct business in Florida with complete privacy and discretion!
One of the first decisions a new business owner must make after making the decision to incorporate is selecting the proper state for incorporation. While there is no best answer for every business, some states are better to incorporate in than others. And Florida is certainly one of the best choices.
But, of course, what's right for some isn't necessarily what's right for everyone. If you're considering incorporating your business, you owe it to yourself to examine all of the choices.
Of course, since business laws are always subject to change, before making any legal or financial decisions, it's wise to always consult with an experienced and competent professional who knows about you and your unique circumstances.
And be sure to mention that Florida is one of the possible choices. Remember, Florida isn't just for tourists, it's for corporations too!
Alex Goumakos is a CPA, business advisor and guest consultant of
Active Filings LLC, a professional incorporating company that provides services in all 50 states.
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