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Benefits of Starting a Business in Florida

Florida offers amazing lifestyle amenities, warm weather, and picturesque beaches. However, the Sunshine State is so much more than just a great place to live it is a place where savvy entrepreneurs can thrive. Starting a business in Florida offers several tax benefits, incentives and support programs, and a business friendly environment.


Woman holding an open sign in front of a storefront after starting a business in Florida.


Tax Benefits of Starting a Business in Florida

 

Florida offers significant tax benefits for business owners. With no state sales tax and multiple incentives to foster job creation and economic growth, Florida entrepreneurs


No State Income Tax

Florida is one of the few states in the United States that does not impose a

personal income tax. As a business owner, this means you won't have to pay state income tax on your share of business profits.


Property Tax Benefits

Florida has a few property tax benefits that may be relevant to businesses. For instance, the state offers a 10% cap on annual assessment increases for non-homestead properties. This can help businesses control their property tax expenses.


Corporate Income Tax Reduction

Florida has a relatively low corporate income tax rate. As of July 2023, the state imposes a 5.5% tax on corporate income, which is applied to C corporations. This rate is favorable compared to many other states. Florida ranks number four on the Tax Foundation's State Business Tax Climate Index Ranking.


Sales Tax Exemptions

Depending on the nature of your business, you may qualify for sales tax exemptions on certain purchases. For example, manufacturing machinery and equipment used exclusively for production may be exempt from sales tax.


Florida Tax Incentives for Businesses

The Sunshine State offers a multitude of tax incentives to promote business development that facilitates job creation and overall economic growth. There are tax incentives related to jobs, investment, energy, and more. Visit the Florida Department of Revenue's Tax Incentives for Business List to see if your business will qualify for any incentives.


Qualified Target Industry Tax Refund (QTI)

This incentive provides tax refunds to businesses in targeted high-growth industries, such as information technology, manufacturing, and life sciences, that create new, high-wage jobs in Florida. Visit Enterprise Florida's Qualified Target Industry Tax Refund summary for details.


Rural & Urban Job Tax Credit

This credit is available to businesses in certain designated rural and urban areas that create new jobs. Visit Florida Jobs to learn more about these tax credit programs.


Research and Development (R&D) Tax Credit

Florida offers a Research and Development Tax Credit to eligible businesses engaged in qualified research activities within the state. This credit can help offset a portion of the costs associated with research and development. If your business is in the manufacturing, life sciences, information technology, homeland security and defense, aviation and aerospace, cloud information technology, materials science, marine sciences, or nanotechnology industry, visit the Florida Department of Revenue for details.


Qualified Defense and Space Contractor Tax Refund (QDSC)

Companies in the defense and space industries that meet specific criteria can receive tax refunds based on eligible defense and space contract expenses.


The word taxes being cut in half to symbolize tax benefits of starting a business in Florida.


Incentives & Support Programs for Florida Business Owners

 

Florida offers several incentives and support programs to assist business owners and encourage economic growth. Some of these incentives include:


Enterprise Florida Incentives

Enterprise Florida is the state's economic development organization that offers various incentives, such as tax credits, training grants, and infrastructure assistance, to eligible businesses that create jobs and invest in the state.


Florida First Capital Finance Corporation (FFCFC)

FFCFC helps businesses access capital by providing low-cost, long-term, fixed-rate financing through the Small Business Administration's 504 Loan Program.


Quick Response Training (QRT) Grant

The QRT grant assists new or expanding businesses in Florida by providing funding for customized training for newly hired employees. Visit CareerSource Florida to see if you qualify for the QRT grant.


Please note that incentive programs and their details can change over time, so it's crucial to check with official sources like the Florida Department of Economic Opportunity or local economic development agencies for the most up-to-date information and eligibility criteria.


Business-Friendly Environment

 

Starting a business in Florida offers a pro-business climate. The state offers strong asset protection laws, which can be beneficial for business owners looking to safeguard their personal assets from potential business-related liabilities. There is a vibrant entrepreneurial ecosystem with networking events, startup accelerators, and incubators, fostering a culture of innovation and collaboration. Home to numerous universities and colleges, business owners have access to a well-educated and skilled workforce . In addition to skilled labor, Florida entrepreneurs enjoy a diverse and rapidly expanding economy, providing opportunities in various industries like tourism, healthcare, technology, and real estate, among others.


Tourists exploring storefronts to symbolize the business friendly environment in Florida.


Starting Your Florida Business

 

Starting a business in Florida offers a plethora of advantages from tax incentives to a pro-business climate offering heightened liability protection and a growing economy with skilled labor and a robust population. If you have set your sights on the Sunshine State for your next business venture, you need an experienced business formation attorney to build a strong foundation for your business.


The team at Start a Florida Business will save you significant time and money on your path to success in The Sunshine State. We offer a comprehensive business formation bundle which includes your EIN application, state and county registration, drafting of operating agreement or bylaws, a compliance consultation, and industry-specific essential business forms. Click on the button below to schedule a free consultation with an experienced Florida business formation attorney.



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