So, you're thinking about moving your business to the beautiful state of Florida. You've enjoyed your visits to The Sunshine State in the past, and thus, want to call the area home for the foreseeable future.
Perhaps you've lived in Florida for a while and have dreams of starting your own business. The timing is finally right and you're doing some research on the top before making a big commitment.
Regardless of your situation, you can't go wrong with incorporating in Florida. It's an absolutely wonderful state with multiple cities that would make the perfect home for your business.
So what makes Florida the perfect state for you and your business? What are the benefits of running your company out of the state? And are there any common issues that come with operating a business and living in Florida?
We've got the answers to all of those questions, plus many more, in this article! And once you're done reading, you'll see that Florida might just be the perfect spot for you and your company to thrive!
Now then, let's get started with FL incorporation!
Pro: The Weather Is Usually Wonderful
If you know anything about the state of Florida, you most likely know that the weather is some of the best in the entire country. In fact, the average temperature any given year is around 70 degrees, which is the highest in the country.
So if you're looking to be somewhere that isn't cold, or you want to open up a weather-driven business like HVAC, you can't go wrong with Florida!
Con: The Weather Can Be Catastrophic
So, this might be a bit confusing but hear us out...
While Florida's weather is usually amazing, there are times each year where things can be a bit dicey. This is especially true if you plan on setting up shop on or near the coast, where the weather can be downright terrifying at times.
If you look at common property damage claims in Florida, weather-related issues are the most common.
So, if you do decide that incorporating in Florida is right for you, make sure you have the right type of insurance so you're covered in case of an emergency.
Pro: Florida is Loaded with Tax Benefits
One of the reasons that people love living in and operating out of Florida is the various tax benefits that come with doing so.
Seriously, ask any Floridian and they'll tell you that the tax breaks that they get from living in the state are pretty and a huge perk to living in the state.
The state has no income tax, which is a huge deal and should save you thousands of dollars each year. There's also no estate or inheritance tax, as well as no tax on security income, pension income and income from an IRA or 401(k).
Also, for many cities, the cost of living is well below the national average. In fact, the entire state of Florida as a whole is surprisingly affordable to live in considering how much it has to offer to its residents.
Con: It's a Competitive Market Already
Regardless of your field, if you decide to settle down in one of the major cities, you're going to find that the market is pretty competitive already.
This can make getting your business off the ground that much more difficult, which of course can mean bad things for your business in the long run.
And while you could decide to pick a city that isn't as large of a market to open your business in, you'll be missing out on a ton of potential customers by doing so.
That means you have to have proper funding, a solid plan, and perfect execution of that plan to make your business work.
Pro: You'll Have a Large Local Customer Base
Of course, with the pressure that comes from trying to thrive in a competitive market comes to access to a large local customer base.
That can make carving out a small piece of the market share for yourself somewhat easier, as there's usually enough room for everybody to go around.
This also means that over time you could eventually become as big as you want to be. So if something like opening up multiple locations for your business interests you, that's certainly doable in the state of Florida.
Con: Tourism Can Be a Bit Overwhelming
There are quite a few cities in the state of Florida where tourism is a huge driving force. And if you're making the move from a place where tourism doesn't exist, it can be quite jarring at first, which isn't ideal.
Of course, you can eventually get used to tourism overtime. And depending on what kind of business you want to run, tourism might even be considered a pro, as you'll have access to tons of new customers each day.
The Pros and Cons of Incorporating in Florida
Well, there you have it! Those are the pros and cons of incorporating in Florida! So, using this information, you can decide if running your business out of The Sunshine State is right for you!
Things like the sunshine, various tax benefits, and a large local customer base make the state of Florida perfect for operating a business in.
With that being said, there are some cons to setting up your business in Florida that are worth noting, too.
Tropical storms, a competitive market, and tourism are all things that you need to consider before moving to Florida to start a business. And if you already live in the FL area, you're most likely familiar with and used to these issues already, making it that much easier for you to make your decision.
Looking for more information on how to start your own business in or outside of FL? Check out our blog and visit the Startups section right now!
