When people think of Florida, the last thing that pops in their head is starting an LLC. If you’re like most people, when you think of Florida, you’re thinking, sun, beaches, bikinis and non-stop partying! But little do people know that Florida is one of the highest-ranking states for being friendly towards business taxes in the aspect that business owners don’t even have to pay them!
Starting an LLC can be a tough and even intimidating decision to make as it is simply because there are just so many things to take into consideration. You have to consider asset protection, capital acquisition, business management, and taxes. Luckily, if you want to form an LLC in Florida, those considerations that most people worry about are the biggest perks of forming an LLC in Florida! And that’s good news because the whole point of becoming an entrepreneur is to make a living out of your passion. If you had to worry about all those things, it kind of takes the passion out and replaces it with stress.
For the budding entrepreneur, take a look at some of the biggest benefits of rooting your business in the Sunshine State.
Benefit 1: Taxes
By incorporating in Florida you will be able to keep and protect more income. This is because a corporation files tax returns and pays its income taxes within the company; this is generally at a much lower rate than what an individual would pay, while the individual shareholders report and pay personal income taxes for whatever money is paid to them by the corporation.
The fact that you’re forming an LLC in Florida also means that you have the option to elect for what’s known as a “pass-through” tax status with the Internal Revenue Service. You can do this by filing an IRS Form 2553. If you’re unsure what pass-through taxation means for your company, it means that its owners can report their share of the LLC’s profits or losses on their individual tax returns, and then pay any taxes due at the individual level.
Benefit 2: Business Management
The Florida tax climate has many benefits in business management as well. Most employees would generally prefer to work for a corporation rather than a proprietorship or partnership… there are just more perks for the employee in a corporation. The reason it’s so appealing to employees is that Florida corporations have the advantage of being able to attract and retain quality employees by offering stock options and bonus plans… talk about incentives.
In fact, incentives are one of the top reasons why people are unmotivated to work. When employees feel like they aren’t valued, they don’t feel any need or incentive to work. According to the HR Gazette, every business needs an incentive program. Now, the thing about incentive programs is that they’re not always monetarily based. Incentive programs can also come in the form of development and cross-training programs.
If you were to create a growth and development incentive program, that will show your employees that you care about their career growth and it also shows that you value them as an employee and want them to stay with the company for a long time.
Benefit 3: Asset Protection
If you need any more reason as to why Florida is a great state to incorporate in, then take a look at its asset protection benefits. Business owners in Florida can breathe easy and have peace of mind in knowing all that comes with being protected by an LLC. The biggest issue that business owners face with corporations is the threat of lawsuits and losing their personal assets.
Well, by incorporating in the Sunshine State, your personal assets are protected because they can’t be used to satisfy debts or any other liabilities caused by various transactions of the company. That’s why it’s so important to do your part and keep your personal finances completely separate from your business finances.
Are You Convinced Yet?
Now that you know the benefits of starting an LLC in Florida, do you need any more convincing? If you’re anything like most people, the taxes, asset protection, and bikinis would’ve sold them a long time ago but starting an LLC is a major business move so it’s important that you’re able to make informed decisions. Do your research and you’ll figure out what’s best for you and your business.