Remember the 70’s TV game show, $10,000 Pyramid? Celebrities and contestants paired up to uncover six categories by first providing single-word clues. For example, if the winning phrase was “Things unique to Florida,” the five clues could be “Disney World,” “sunny beaches,” “oranges,” “Everglades,” and “SeaWorld” – all very good clues.
Savvy business owners and business law aficionados would enthusiastically contend the sixth unique to Florida clue should be “incorporation.” That’s because Florida’s new business climate is just as warm and welcoming as its beaches. Check out 5 compelling reasons you should incorporate your business in Florida:
1. Streamlined Process to Incorporate in Florida
• Registered Agent: You are not required to live in Florida to take full advantage of its favorable business ecosystem. Even if your business is physically located outside the state, just assign a Florida-based registered agent and you’re all set. The registered agent should be available during normal business hours to receive service of process and official notices.
• Officer Designations: Many states require each corporate officer be separate individuals. For example, if you have more than one shareholder in Tennessee, the President and the Secretary must be two different individuals. In Florida, one individual can be the designated Director, President, Secretary, and Treasurer.
• Online Business Infrastructure: Named “best in the country” by GimmeLaw.com, Florida’s rich database of filings and documents is searchable, fast, and convenient.
Regardless of location, most people will agree that a business has to spend money to make money. Florida, however, minimizes your start-up costs, making the road to profitability much easier.
• Florida, unlike many other states, does not require you to fund your corporation straight out of the shoot. On the other hand, some states mandate that you fund your business with up to $1000 in capital before you’re allowed to begin operations.
• For example, here is a simple table comparing Florida and Tennessee’s start-up fees:
|Articles of Organization||$125.00||$300|
|Registered Agent Designation||$35.00||$100.00|
3. Taxes (updated 2019)
You know the old saying, there are only two things certain in life – death and taxes? Well, that’s true with incorporating in Florida as well, however, Florida’s commitment to a supportive business environment is reflected in lower taxes and more tax exemptions.
|Personal Income Tax||NONE||6%|
|State Sales Tax||6%||9.45%|
|Corporate Income Tax||5.5%||6.5%|
|Franchise Tax||No corporate franchise tax on capital stock||$.25 per $100 net worth|
|Electricity used in Manufacturing Process||EXEMPT||1.5%|
|State Aviation Taxes||EXEMPT||7% + 2.75% of sales price|
|Corporate Income Tax||Limited Partnerships Exempt||6.5%|
Business owners in Florida don’t have to disclose who they are or where they live – that’s because Florida doesn’t keep a record of corporate stakeholders’ names or addresses. This provides an invaluable layer of privacy and protection to keep your business life separate from your personal life. Anonymity also levels the business playing field. Consider Disney’s plan to build a theme park outside of DC in the 90s. Without anonymity, Disney most certainly would have experienced inflated property prices.
5. Capital Partners Law Can Help You Incorporate in Florida
If you’re going to incorporate in Florida, you must put Capital Partners Law on your shortlist. Not only can we serve as your resident agent, but our legal experience with large and small businesses will ensure that your incorporation process is compliant, complete, and sets your business up for success.
Beyond incorporating your business, Capital Partners Law can partner with you to put your business plan into action, consult on growth strategies and asset management, and mediate potential disputes. In addition to specializing in corporate and business law, our attorneys are at the forefront of what it takes to run a successful business in a global economy.
What Should You Do Next?
If you are interested in learning more or speaking with an attorney at Capital Partners Law, there are plenty of ways to get in touch:
- Call us toll-free at (833) 7-CAPLAW.
- Find your nearest office and call to schedule a free consultation.
- Complete our New Client Request Form online. (No obligation – an attorney will review your information and contact you to discuss your needs).
- Schedule a Free Initial Phone Consultation online now.
- Schedule a Free Initial Video Consultation online now.
This article is for informational purposes only. It does not create an attorney-client relationship with any reader nor should it be construed as legal advice. If you need legal advice, please contact our firm.