Not all states are created equal, and in addition to plentiful sunshine, Florida offers quite a few tax advantages for businesses. As of 2016, the incentives fall into three areas: corporate income, insurance premiums, and sales and use. Not only that, starting a small business is relatively easy.
Small Business Regulations Are Minimal
Founding a small business in an area such as Palm Beach, Florida is a breeze, particularly since the county website is so friendly and provides a step-by-step guide of the process. Basically, you need to name your business and check with county officials about zoning, any licenses and any state sales tax issues. Working out of your home is most likely fine, but it is always good to confirm. That’s it! The process for other areas of the state, besides Palm Beach, is relatively similar.
There Is No State Income Tax Unless You Are a C-Corporation
The only Florida businesses that pay taxes are C-corporations, but even then, the taxes are low compared to what C-corporations have to pay in other parts of the country. This means that sole proprietorships and partnerships get huge savings. As for limited liability corporations, they also do not have to pay state tax unless they are one of the infrequent LLCs that has opted for incorporation.
Many Florida small businesses take the form of an S-corporation; it offers the dual benefits of no business tax and quite a few similar legal protections available to C-corporations. However, S-corporation owners do need to pay federal taxes on their S-corporation income.
Tax Incentives Are Varied
Florida provides many tax incentives, such as a research and development tax credit, and a sales tax exemption for industrial machinery and equipment purchases for eligible manufacturing businesses. No matter what type of business you want to go into, there may be a Florida tax incentive for you. Enlist the help of an accountant to learn more, or click on applicable links from the Florida Department of Revenue.
How Herman & Company CPA’s, P.C. Can Help
Herman & Company CPA’s, P.C. offers many solutions for businesses to maximize profit in Palm Beach, Florida. Whether you need assistance with accounting and bookkeeping needs and/or tax planning, Herman & Company CPA’s, P.C. will do a free consultation. Get in touch to see how we can be of service!