12 Benefits of Incorporating Your Business in Florida
Well, it is obvious that there are many challenges that a person would have to face while competing in the global market just like choosing the right business location is a challenge. And that is why Florida being the right choice for incorporating your business in, has developed a business-friendly environment for companies to grow fast.
Incorporate your business in Florida?
Florida is a place that accurately understands what is needed for business and firmly stands in welcoming and supporting you with every possible assistance that you might need for building and growing a business here.
You can easily get a talented workforce, quality of life your company needs, global connectivity and even the top-ranked infrastructure. But this is not all! There are many other reasons to incorporate your business in Florida which are mentioned below:
One of the best things about incorporating in Florida is that you would not need to disclose all the information about the people who are the members of the company. In short, the filing of the incorporation of your company can be done anonymously, which is mostly done through a representative agent of the company.
2. Limited Liability
Another one of the main and best reasons for incorporating in Florida is that you get limited liability. The limited liability basically protects the company principles and the shareholders from the personal liability in most of the cases. Let us take for instance that the corporation is indebted. In this case, the creditors would not be able to collect any personal asset of the principals and shareholders for covering their payment.
3. Perpetual Existence
The Florida corporations have a continuous life regardless of the change in ownership. Basically, in some states, when the owner dies, the company is no more, and if an heir wants to continue it, it would be considered as a new business. But in Florida, it is not like this. Even though the Shareholders change as well, the Florida State corporation would never be affected by anything.
4. Corporate Formalities & Professional Appearance
With a Florida corporation, your company would look much more professional due to the display of the Inc. initials after the business name. This Inc. is basically the official stamp from the State of Florida Division of Corporations. With all this professionalism, your company can easily obtain loans from the banks and be successful in any other business venture.
5. Raising Investment Money
With the Florida corporation, you would able to raise money easily, not only within the state but also from the outside investors. This is since the shares in a Florida corporation is easily transferable, which means that you can sell the shares in exchange for funding.
The best part about this is that the corporation would not have to pay taxes on the money that has been raised by the sale of the stocks. In addition to this, investors are most likely to fund their money and time in a Florida company as they know it would protect their personal assets in case of a lawsuit.
6. Ease of transferability
With a simple assignment of the stock certificate, all the Florida corporation, its assets, and even the accounts can be transferred. Though, this is not very simple when it comes to a sole proprietorship or partnership company in Florida. This is because each asset of the individual and even the licenses have to be transferred individually making it more of a hectic task.
7. Benefits for Employees
The corporations in Florida are structured to support the employees, which means that you would be able to hire the best employees easily. The reason is that you would be able to adopt several employee benefit schemes like the stock option plans, etc. Moreover, you would also be able to deduct the contributions that you make for the employee disability and employee health benefit plans.
8. Low filing fees
There was already a low fee for the filing of a Florida corporation, but recently, the government decided to cut down the already low pay by 25% more. In short, incorporation in Florida is the cheapest as compared to many other states in the US. The fee is just $70 that is given to the State of Florida Division of Corporations.
9. Can undertake all lawful activities
As per the State of Florida Division of Corporations, all the companies incorporated here can perform all the lawful business ventures, except the licensed professionals.12 Benefits of Incorporating Your Business in Florida Click To Tweet
10. For-profit corporations in Florida you need only one director
Yes, incorporating in Florida would only need one director who can also be the same person as the Secretary, Treasurer, and the President. While in the other states, there is a need for more than one director, and mostly that the director and the other officials are different people.
11. No minimum capital requirement
Most of the states in the US need that the corporation has to have at least $1000 capital. While in Florida, there are no capital requirements for the Florida corporation.
12. Tax advantages
Other than the fact that you would not be double taxed if you incorporate in Florida and would just have to pay a low amount of tax, there are other tax benefits that makes Florida the right choice for your company. The following tax advantages are available for the corporations in Florida:
- All start-up expenses are deductible.
- Business vehicle expenses and Travel expenses are deductible.
- The professional fees for banking, legal or accounting services for the business as well as the business lease and rental expenses, are fully deductible.
- Your overhead expenses for running your business daily and the interest paid on capital loans are deductible.
- Paid Wages, Business Insurance, Advertising Costs, and sales tax linked to your company are deductible.
- Medical insurance for your family is deductible.
- Tax deferred trust can be put up for the owner’s retirement plan.
- There isn’t any corporate tax at state and federal level on the dividends if the owner decides to be a subchapter S corporation.
- Expenditures or loses are fully deductible for the corporation while for the sole proprietorship or partnerships, they would have to prove that there was a profit motive before the loss is deducted.
And the benefit’s list is just never-ending. So, if you have been thinking of forming a Florida company, you might be on the right path. But if you are not sure, you can contact an attorney to learn more about the advantages you have of incorporating in Florida.
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