Published on August 14, 2019
Doing business in Florida sounds like a good idea, right? Not only is South Florida a warm and sunny place to live, but it’s also actually an excellent location to start a business. Whether you are starting a company, opening a new location or moving your headquarters, the Sunshine State has some great advantages to enjoy.
Florida is home to the fourth-largest economy in the nation. Its growth in 2018 significantly outpaced the U.S. at large at a rate of 3.5% compared to 2.9%. Small businesses form a big part of Florida’s economic landscape, making up 99.8% of all businesses and employing 3.3 million people, representing more than 42% of the state’s workforce.
Florida is one of only seven states in the country that doesn’t have a personal income tax making it a very attractive location for corporate legal entities, such as LLCs. The state’s sales tax for rented or purchased goods sits at 6% and corporations must file a corporate income tax return at a low top rate of 5.5%. This means you’ll be able to keep more of your money exactly where it belongs — in your bank account. If you’re looking for a prosperous place to start a business, South Florida may well go to the top of your list.
Recognizing that businesses need certainty, predictability, and efficiency, Florida’s regulatory agencies and local governments have in recent years made efforts to provide quicker, less costly and more predictable permitting processes for significant economic development projects. Ready assistance and access to enterprise bonds, micro-loans, and a growing venture capital sector further contribute to Florida’s reputation as a great place to do business.
Of course, South Florida is one of the most popular tourist destinations in the country. The relatively mild year-round weather and stream of events make for a favorable climate for steady sales and welcoming new opportunities without some of the more profound seasonal shifts found in other parts of the country. In fact, South Florida’s tourism today supports many businesses throughout the year.
South Florida has a dynamic and active entrepreneurial environment with annual small business startup activity growth hovering around 3.7% and SBA loan approvals increased by more than 56% between 2012 and 2015. That’s great news as having a thriving entrepreneurial community helps create a business atmosphere with the ongoing demand for various types of resources and support.
Florida is also a strategic and economic center of the Americas. A prime geographic location offering relative economic and political stability has put Florida at the center of trade and finance throughout much of the Western Hemisphere.
Florida is also home to a growing body of investment capital from venture capitalists and angel investors, making it an increasingly attractive place to start or growing a business.
“The idea that you have to be in huge metropolitan areas like New York or Silicon Valley for access to capital is overblown,” said Andy Latimer, founder, and CEO of Bluewater Media. “The stable business environment in Florida makes business here ripe for investment. Also, the walls of access to large markets have been broken down by technology.”
Today, Florida is home to several economic hubs considered to be incubators of innovation and startups.
Florida’s workforce is also one of the most culturally and linguistically diverse in the nation. More than 3.2 million Florida residents were born outside the U.S., and 4.4 million are speakers of languages other than English. Best represented are speakers of Spanish (3.2 million), Indo-European languages (875,000) and Asia and Pacific Islander languages (218,000).
With more than 150 banks across the state, South Florida has a great sense of community and supporting local businesses. Banesco USA offers a wide variety of services and loans to support many different businesses looking to grow in South Florida. To learn more about Banesco’s business loans please read our business loans (linked) article to learn about our services. With five business centers in South Florida – Coral Gables, Doral, Hialeah, Weston, and Aventura, we are here to help you grow and succeed.
If you are looking to starting a business in South Florida, you can reach one of our experienced personal bankers by calling +1 (888) 228-1597, or by visiting one of our convenient branch locations.