What to Know When Transferring Your Business to Florida
With lower taxes being the main driving force, tons of businesses have found themselves moving to “tax-friendly” states, like Florida, and the fantastic beach-front housing opportunities and warm year-round weather makes that move even better!
Florida, in particular, because of its SALT tax method (which allows taxpayers to itemize more deductions, such as property taxes, for greater tax breaks) is a veritable safe-haven for those who are looking to ease their tax burden. Due to Coronavirus, many are being urged to relocate to Florida in numbers as high as 1,000 per day, often bringing their work with them.
Those who are looking ahead at a business transfer to Florida can make their relocation smooth by using the following tips:
Preparing for the Legalities of the Transfer
The State of Florida requires all businesses be registered and have a business license. Sunbiz.org is Florida’s official business entity website and it is the hub for anybody coming in with a business from out-of-state. This website is where you want to go for any questions on what you need to operate a business in the state. You also can call (850) 245-6051 (the Sunbiz phone number for creating or transferring a business).
Utilize IT Tech Support from Reputable Sources
You will need to set up a new connection with a Florida-based managed IT services company. It is wise to set up your new tech support as soon as possible, and perhaps before the physical relocation, just to prevent gaps in operation. Finding a quality IT provider in Pompano Beach will help you avoid any of the pitfalls associated with a contract gap. These can include backlogged work, lack of client resources, which would lead to bad ratings or lost customers, or an inability to make connections with new clients.
Get Employees Set Up with the New Location
You may choose to keep the employees you have and find some remote workarounds to the transition, or hire new employees in Florida. You may also decide to transfer some employees to work in the Florida offices. Whichever avenue you take, you should lighten your workload by hiring IT professionals who specialize in easing employees into the technical side of remote work.
Get Accurate Business Tax Filing
Florida offers many tax benefits for businesses, but it’s essential that you get all of your tax information correct and then file your business accordingly.
While Florida corporations are subject to a 5.5 percent income tax, sole proprietorships, LLCs, and S corporations are exempt from this tax. It is likely that your business will fall under one of these categories, as long as you do not file your business as a C corporation. A C corporation would tax the business entity separately from the owner, with the biggest advantage of that filing being that the business would exist independently of the owner, with a separate legal identity.
If that would work for you and your business, great! If not, then your business will likely meet regulations to be tax exempt in Florida. Make sure you know what your business tax filing is before transferring so that you can document it correctly.
