The choice to incorporate a small business in Florida has several advantages. Corporations are separate legal entities and, as such, the corporation rather than individual owners pay both the taxes and the liabilities. If you are thinking of running (or are currently running) a small business, incorporating in Florida might be a good idea because you would no longer held personally liable if your business suffered a downturn. Small business incorporating in Florida also means that you do get to enjoy the perks and incentives that come with running a small business. For example, businesses in the technology sector and certain manufacturing sectors can qualify for grants if they are deemed to be beneficial towards national defense. Additionally, the U.S. Small Business Administration might qualify you for one of its loan programs. With regard to Floridas general business climate, the state offers very good tax advantages. For example, Florida does not tax corporate income on subchapter S-corporations and state personal income. There additionally is no corporate franchise tax on capital stock, no state-level property tax assessed, no property tax on business inventories, no property tax on goods-in-transit (up to 180 days), and no sales and use tax on goods manufactured or produced in Florida for export outside the state. In addition, there is no sales tax on purchases of raw materials that are incorporated in a final product for resale, no sales/use tax on boiler fuels, and last but not least, there is no sales or use tax on co-generation of electricity. Some specific industries receive additional support in Florida. For example, the Florida Aerospace Finance Corporation (FAFC) is a valuable resource for Florida-based businesses in the aerospace sector. The FAFC was created to expand aerospace business opportunities within the state. This entity promotes Florida as The Place for Space by providing direct loans and innovative financing strategies for small aerospace businesses. These are just a few examples of the business supports in place to help a small business grow in Florida. |
