What Are the Benefits of Incorporating in Florida?
Florida is becoming one of the more popular places to incorporate a business. Reasons for this trend include a business-friendly atmosphere, and a number of tax advantages. In addition, the state of Florida allows a single person to incorporate a business. Use of an attorney is not necessary to incorporate a Florida business.
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Liability
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One of the biggest reasons to incorporate in Florida is the limited liability protection granted to shareholders and principals of a Florida corporation. Incorporating a business in Florida protects the personal assets of the company's shareholders, directors and officers. If a Florida corporation accumulates significant debts or gets sued, the personal assets of shareholders and other company principals may not be seized as compensation for the company's obligations.
Taxation
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Florida does not impose a personal income tax, or a corporate franchise tax on a corporation's stock. Corporations in Florida do not pay property tax assessments on the state level, and there is no tax on corporate business inventories. In addition, corporations in Florida do not pay income taxes to the state as long as the corporation does not conduct business transactions in the state. Furthermore, Florida corporations are not required to pay sales and use tax on goods that are made in the state, but exported to other states. Incorporated businesses in Florida are allowed to deduct expenses such as salaries paid to employees and contributions made to employee health plans. Additionally, all Florida corporations may fully deduct the company's start-up expenses, as explained on the Law Offices of Nick Spradlin website. (http://www.nickspradlin.com/benefits_of_incorporating.html)
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Fees
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Florida is one of the cheapest states in which to incorporate. As of 2010, it only costs businesses $70 to file articles of incorporation with the Florida Department of State. States such as Texas may charge as much as $300 to file incorporation documents with the state. Also, the Florida Department of State does not impose a capital requirement on Florida corporations. States such as South Dakota and Connecticut require a corporation to accumulate at least $1,000 before it can begin operating.
Anonymity
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The shareholders (owners) of a Florida corporation are not required to list their names and addresses in the company's articles of incorporation. The Florida Department of State does not keep track of stock ownership for incorporated businesses. This makes it hard for interested parties to determine who owns a Florida corporation. In addition, Florida state law allows a single person to act as a corporation's director, president, treasurer and secretary. States such as Missouri require a corporation to have at least three directors, and may not allow one person to hold all corporate officer positions.
Considerations
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The state of Florida has the 15th largest economy in the world and the 4th largest labor force in the United States, as explained on the Florida Division of Motor Vehicles website. In addition, due to the increased number of businesses incorporating in the state of Florida, the Florida court system is better equipped to preside over corporate cases in comparison to other states.
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