Florida Isn’t
Just For Tourists:
It’s For Corporations Too!
By Alex Goumakos *
No matter what your interests, you will find something in Florida
to enjoy. Whether you like mouse ears and theme parks, the warm,
sunny beaches or the exotic wildlife, Florida attractions are hard
to beat. With an increasingly friendly business environment, Florida
is also a great place to do business!
When most people think of Florida they think of sunshine, palm
trees and fabulous winter vacations. What most people don’t
realize is that Florida is also a great place to incorporate. If
you own your own business or are considering starting one, you owe
it to yourself to discover the benefits of a Florida corporation.
For starters, there is no personal income tax in the State of Florida.
While regular corporations are subject to a 5.5% tax on federal
taxable income over $5,000, if you incorporate your Florida business
and elect S status you can have your cake and eat it too! Florida
S corporations are NOT taxable entities and are therefore not required
to file state income tax returns (except for the first year). The
result is this: you can have the benefits of a corporation, and
pay no tax! But there’s more:
Unlike most states, Florida does not have any minimum capital requirements.
So if you are just starting out and don’t have a lot of money,
you can still take full advantage of incorporating without having
to put a lot of cash into your company. Some states require you
to fund your corporation with at least $1,000 in capital. Not so
in Florida.
Another good thing about incorporating in Florida is that it’s
easy to do and you don’t have to involve a lot of different
people. For example, while many states require you to have more
than one director and a different person for each corporate officer,
in Florida the Director, President, Secretary and Treasurer can
all be the SAME person! This makes it easy for smaller businesses
that want the benefits of a corporation without all the hassle.
Florida is increasingly becoming a “business friendly”
state. It already has some of the lowest annual fees and corporate
reporting requirements in the country. But here’s some even
better news: The shareholders, directors and officers of a Florida
corporation can remain anonymous if they so choose!
The Secretary of State of Florida does not require the names or
addresses of shareholders, directors or officers to be listed in
the articles of incorporation. Since the State does not keep a
record of who owns or controls the corporation, you can conduct
business in Florida with complete PRIVACY.
One of the first decisions a business owner must make after deciding
to incorporate is selecting the proper state of incorporation.
While there isn’t a one-size-fits-all answer or standard, some
states are better to incorporate in than others. Florida happens
to be one of the better choices.
However, what’s right for some isn’t necessarily what’s
right for everybody. If you are considering incorporating your
business, then you owe it to yourself to examine all of the choices.
Before making any legal or financial decision, always consult with
an experienced and competent professional who knows you and your
unique circumstances.
And be sure to mention Florida as one of the possible choices.
Remember, Florida isn’t only for tourists: It’s for corporations
too!
Alex Goumakos is a CPA, business advisor and guest consultant of
Active Filings LLC, a professional incorporating company that provides
services in all US. (http://www.activefilings.com).
Related Links:
How to incorporate in Florida
Florida Incorporation Plans
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