Incorporate in Florida

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Incorporating in Florida can be advantageous to your business because of the pro-business regulatory environment, stable taxation, and relatively stable economy. Besides having a stable economy, there are many government incentives to encourage you to conduct business and incorporate in Florida. Some examples include targeted qualified industry tax refunds to special zones and sites that eliminate state and local taxes to encourage development. Incorporating in Florida offers shareholders protection from business debts and lawsuits, increased confidentiality, and a ready supply of skilled, able labor. While there are a number of factors that must be considered before deciding that Florida is the state best suited for your corporation, if these factors are applicable to you and your business, then incorporating in Florida can offer a substantial advantage to you and your company.

Factors to Consider

Deciding to form your corporation in Florida should be based on certain determining factors. Chief among these is whether or not you intend to physically locate your business in Florida--while there are many advantages available in Florida for services and products produced locally but exported, careful consideration to franchise taxation, the business goals for your company, where you intend to conduct the business, and where you intend to bank and establish financial/credit footholds. Incorporating in a foreign state and doing business in Florida requires the corporation to formally qualify to do business as a “foreign corporation" in Florida, along with the commensurate duplicitous out of state registered agent fees. These additional fees and annual filings cost money (about the same amount that incorporating in the state would cost anyway), and would expose the company to late penalties if annual reports are filed late. This is a special consideration because if the company is complying in other states, the Florida requirement may be accidentally overlooked and the fees would be incurred (not to mention the lapse in the corporate protection in the state--a potential “piercing of the corporate veil”). It really does make sense to incorporate in the state in which you will be conducting the majority of your business.

Tax Benefits

Florida also offers beneficial tax incentives; there is no personal income tax, subchapter S corporations are allowed (for pass-through taxation benefits), and there is no corporate franchise tax on capital stock, no state-level property tax assessment, no property tax on business inventories, and no sales and use tax on goods manufactured or produced in Florida for export outside the state.

It is also imperative to remember that you observe the general corporate formalities once your corporation is formed. This will help ensure the integrity of your “corporate veil” and provide you and your corporation with the liability, asset, and tax protection and benefits that incorporating in Florida can offer.

Assuming that you indeed intend to conduct business in Florida, establish a financial foothold there, observe the corporate formalities, and are ready to enjoy year round sunshine, we can safely say that incorporating in Florida may be right for you.

Advantages of Incorporating in Florida

• Capital Flexibility. Florida has no minimum initial capital requirement. While it is important that sufficient operating capital be present in order to provide for the safe operation of the corporation (and in order to maintain the corporate formalities), the lack of an initial capital requirement can go a long way in assisting your start-up company.
• Flexibility of Management. Florida corporations require only one director. The same person can be a Director, the President, Treasurer and Secretary.
• Business-Friendly Courts. Florida has a renown, quality, impartial Court system. Florida courts are well-versed in corporate issues.
• Business Friendly Environment. Florida’s business-minded judicial, executive, and legislative branches of government are becoming more friendly to corporations, and more and more knowledgeable about how corporations transact and interact everyday. The annual fees for forming and maintaining a Florida corporation already compare favorably with other states, and have seen double-digit reductions in recent years
• Confidentiality. Florida does not disclose, nor keep records of, stockholders. Only Directors, Officers, and registered agents are a matter of public record.

It should be apparent that incorporating in Florida offers a tremendous amount of benefits in the form of protection from liability, asset protection, favorable taxation, and business flexibility, all in a friendly, sunny business environment. Incorporating in Florida will make your Florida-based company more credible, and would be an excellent way to attract investors all the while safeguarding shareholders’ personal assets from liability. With a diligent implementation and business development strategy, you can build your business into a highly competitive, investment-attracting entity.