Company Registration in Florida
The "Sunshine State" has made a significant leap in the last 6 years: its GDP has increased by 4%, surpassing $1.6 trillion, and employment is growing by more than 2% annually on average. As a result, Florida's economy is now the fourth largest in the United States. And it continues to gain momentum thanks to its main drivers - tourism, real estate, and service industries. The travel and leisure industry is supported by excellent climate, hundreds of kilometers of sandy beaches with comfortable hotel complexes and the world's largest Disneyland. Additionally, the state has a developed mining industry: for example, 75% of the country's agricultural phosphates are produced here. The agricultural-industrial complex also maintains its position, supplying everything from tomatoes to sugar cane to the market.
The fact that since 2021, headquarters of many major American corporations have been relocated from California to the "Sunshine State" speaks for itself. This is an increasingly favorable jurisdiction for starting your own business, primarily in the form of LLC and corporation. How to start a business in Florida? Here's what you need to know at the start of your project.
7 Arguments to Register a Company in Florida
- Diversity of special programs to support startups and small businesses. There are also generous grants in the high-tech sector.
- Low tax burden compared to most other American jurisdictions. For example, the local corporate tax is only 5.5%.
- Great variety in choosing business sectors (tourism, trade, services, construction, finance, IT, etc.).
- Ability to register a company remotely.
- Active labor market (many specialists with good education and experience).
- Access to innovative technologies.
- Minimal requirements for the number of participants (one director and one shareholder).
How to Open an LLC Company in Florida
LLC (similar to LLC) is one of two business structures (the second is C-corporation) that a non-resident can open in America. It can be registered for a single beneficiary, in which case they are exempt from filing financial reports. If there are several participants, each reports their income and pays tax on turnover.
LLC Advantages:
- protection of personal assets from creditors,
- simpler, pass-through taxation system,
- no ownership restrictions, business can be easily sold without closing it,
- flexible management form, no need to gather shareholders annually.
If you plan to register a company (Florida) as an LLC, first reserve the company name. It must be different from existing ones in the market, reflect the business sector, its essence, and include the words Limited liability company, LLC, L.L.C, Corporation, Incorporated, Limited, Company or their abbreviations.
The general registration process is similar to C-corporation and is discussed below.
How to Open a Corporation
While S-corporation organization is legally impossible for non-US citizens, C-corporation is an available and popular option among them. Its peculiarity is that double taxation applies. That is, both the company makes deductions to the budget from its income, and shareholders from received dividends.
Advantages of this form:
- participants are not liable for company debts and obligations with their personal property,
- rigid organizational form, possibility to sell shares completely or partially,
- the enterprise can be inherited without paying tax.
Company registration in the form of C Corp also begins with choosing a unique name not yet registered in the state, mentioning the words Corporation, Incorporated, Company or abbreviations Corp., Inc., Co and the essence of future activities.
Required Documentation Package
When submitting an application, specify:
- company name, address, creation purposes,
- organizational-legal form and management structure,
- information about managers, their positions and powers, residential addresses,
- details about planned operations.
Corporations additionally inform about the number of shares to be issued and their value. To optimize and speed up the process at this stage, it's better to involve a qualified registration agent. This can be either an individual or a business structure with local registration.
Registration Process
After you've reserved the name and collected the documentation package, the action algorithm for LLC and C-corporation generally looks like this.
- Submit an application to the state secretary
- Get an EIN
After company registration, get a nine-digit employer identification number EIN by filling out a form on the tax service website. EIN is necessary for filing annual declarations, paying taxes, opening a bank account, and hiring staff. If double taxation applies, you'll also need a separate number at the state level.
- Open a bank account
This requires your personal presence or delegation of powers to the company secretary.
Taxes in Florida: Key Features
The taxation system in the state is one of the most attractive in the country. There is no income tax or inheritance tax for individuals, and legal entities are exempt from budget contributions if they conduct business exclusively abroad.
Companies pay:
- federal income tax - 21%,
- local budget fee - 5.5%, with the first $50,000 of income exempt from corporate tax,
- sales tax - 6%, however there are additional local fees from 0.5 to 1.5%,
- use tax (applies to products purchased outside the state without VAT payment) and some others.
Besides exemption from corporate tax on the first $50,000 of income, you can also count on benefits in the form of tax deductions (initial, rental, overhead, insurance, travel and transportation expenses related to business, plus banking, legal and accounting fees).
Among the fees - also property tax (1.1% of its value), communication services (general rate - 7.44%) and fuel (about 36 cents per gallon).
Consider also the costs of obtaining a license (usually it costs less than $100). Licensing, in particular, applies to work in the agricultural sector, mining industry, energy sector, transport, logistics, telecommunications.
Why Choose Us?
Experts at US Business Services will quickly and error-free process your company registration in Florida, accompanying you at every stage.
All services are provided remotely, without the need for personal presence, saving your time and giving you freedom of action.
We'll help with opening a bank account, annual reporting, and asset protection for the reliability and growth of your business.
