USA - Florida

Miami – the center of entertainment and relaxation known as the „American Riviera“ does not only attract tourists from all over the world. Florida is also a popular destination among entrepreneurs and investors.

Why choose a company in Florida for business

If you look at the business environment in the United States, you will find that everything is very individual. Each state is suitable for a different type of business and for a different purpose. You should be very careful in your selection.

Companies incorporated in Florida are suitable for investors who want to do business physically in the state. We do not recommend a non-resident company. Setting up a company is relatively easy and fast, the whole process takes between two and five days depending on the speed of the authorities. As they say, time is money.

Only one shareholder and one director is required. Both functions can be performed by the same person. If you are a solo entrepreneur, Florida has the perfect conditions for you. Unlike other states, no share capital is required.

Tax system

The tax system in the United States is quite complicated and extensive. In the system, there are federal taxes intended to finance federal projects, and in addition there are state taxes, the amount of which is determined separately by each state. Since the range of state taxes varies from state to state (often significantly), some US states are more suitable for business, some less so. Federal corporate income taxes range between 15 % and 35 %, depending on the amount of taxable income. The lowest rate applies to an income of $50,000. In general, the tax system is very complex, and it is useful to consult with professionals to effectively set up the structure of taxes paid.

Before doing business in the US, it is important to review the following information. There are two basic types of corporations in the United States with different taxation.

The first type is the Corporation (C-Corp), which pays corporate income tax at both the federal and state levels. If a company wants to pay dividends, it is required to pay dividend withholding tax, which is also paid at the federal and state levels. These taxes can be quite high. However, an optimization can be done by asking the IRS to allow you to pay tax only on a personal basis (this creates an S-Corp). This means that if the company reports a profit of one hundred thousand dollars, taxes are paid as if you made the profit yourself.

The second basic type of company is the Limited Liability Company (LLC), whose profits are taxed directly in proportion to the partners' share of ownership. Florida „S“ corporations are not taxable entities. This means you don't have to file a tax return after the first year, which again saves money. State income tax is an additional 5.5%. The advantage is that Florida does not tax the profits of individuals. The basic rate of „sales tax“, which is applied to physically sold products, is 6 %.

Top Benefits of Doing Business in Florida

• The Florida business registry does not list the owner of the business, only its registered agent and „manager“. When withdrawing profits from the company, each partner will then pay an individual tax of approximately 12 % of their income up to $34,000/year.
• The state of Florida has no minimum company capital requirements.
• If you buy real estate through a Florida corporation, you will not have to pay inheritance tax on real estate owned in Florida.
• Tax optimization of your income.

Ke stažení

Back to the previous page

Latest blog posts

• Where are the best tax solutions in EU?
• 5 tips on how to overcome a business crisis
• How to smoothly transfer your company to your offspring and enjoy a peaceful retirement

Contact us