Need to Incorporate a New Business? You Found the Right Spot – Florida

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
  • 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.
  1. Cost

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:
Item Florida Tennessee
Filing Fee $35.00 $100
Articles of Organization $125.00 $300
Certified Copies $8.75 $20.00
Registered Agent Designation $35.00 $100.00

 

  1. Taxes

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.

Tax/Exemption Florida Tennessee
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%

 

  1. Privacy

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.

  1. Eskander Loshak, LLP

If you’re going to incorporate in Florida, you must put Eskander Loshak on your short list. 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, Eskander Loshak 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.

For a free consultation, call (954) 334-1122.

 

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