Miami has become a business hotspot, with many of PGC’s clients favoring the area as their base for US business expansion, especially within the recruitment industry. Having recently been ranked by WalletHub as the second-best place city in the US to do business, if you’re considering starting a business in Miami, we’re going to run through the pros and cons.

Pros of Starting a Business in Miami

High Growth Rates in Miami

Keep connected in Miami - The expansion of the commuter Brightline high-speed passenger rail which connects Miami-Dade, Broward, and Palm Beach Counties has also provided businesses with an extended talent pool to choose from. Miami also provides global access to people and goods for businesses, with non-stop direct flights available at Miami international airport to over 50 regions in the US, and 18+ Europe/Middle East locations.

Booming Migration – If you’re searching for the best talent in the US, Miami could be the city for you. Having established itself as the next big tech hub in America and a location for remote workers to experience a better lifestyle, Florida is increasingly becoming home to top talent. Proving it’s popularity, Florida experienced, the highest US net migration and immigration gain of 259,480 between July 2020 and July 2021, according to the US Census Bureau data.
Bank popularity – Often coined at the ‘financial capital of Latin America’, Miami is home to one of the greatest concentrations of national and international banks in the US. If your business operates within the financial sector, Miami serves as a HQ to over 220 financial institutions, and high average financial wages, make it an attraction location for investment.
The annual mean wage in Miami is $54,790 according to US BLS data, with this wage increasing significantly within popular industries in Miami such as finance and technology.

Business incentives in Miami

Tax pros of Miami – If you’re considering moving to Miami, you will likely benefit from a larger disposable income, thanks to Florida waiving state income tax; remaining at 0%. However, businesses in Miami are subject to a 5.5% corporate tax (a reasonable corporate tax rate in the US), and a combined sales tax rate of 7%. This is the total of the state sales tax rate in Florida (6%) and the Miami Data County sales tax rate (1%).

Miami-Dade Office of the Florida Small Business Development Center - Equips businesses with training, technical assistance, industry introductions and management advice, so they have the confidence to start up, grow, and succeed in Miami.

Business Continuity Microenterprise Assistance program II - Small businesses in the City of Miami with five employees or less may be eligible for a one-time grant of $15,000.
Small Business Emergency Loan Program II – Business in Miami with 6-12 employees may be eligible for up to $35,000 for business expenses, including, but not limited to, utility payment, rents, and employee salaries.

Benefits of Living in Miami

Is Miami a good place to live for you or your employees? Chances are when you think of Miami, the first things that come to mind are sipping drinks at beach clubs and bright city lights towering over palm trees, but there is so much more than what meets the eye. Here are a few reasons why moving to Miami is a good idea.

Sunny weather - Miami is the US’s warmest location in winter, in true testament to its climate, it may not surprise you that suntan lotion was invented in Miami.

‘The cruise capital of the world’ - If cruises are your employees’ thing, you’ve come to the right place. The port of Miami is the largest in the world, with nearly 5 million passengers sailing through each year. No wonder it was voted the third most fun city in the US, attracting over 10 million tourists a year.
Activities for everyone – From Miami’s rich nightlife, miles of beaches, cultural food experiences, golf courses, and outdoor activities, you will not be bored in Miami. rich nightlife, endless outdoor activities as well as tasty food.
Scenic for the big screen - Miami is nicknamed the ‘magic city’ for a reason, and it’s likely you’ve seen the city on the big screen. The picturesque location was featured in three James Bond movies.
Miami public transport – From Metrobus, Metrorail, and MetroMover, Miami is easily commutable without a car, with various options to choose from to keep connected.

Tech Industry and Talent in Miami

If you’re starting a tech business in Miami or relocating from another state, Miami is quickly establishing itself as one of the best tech hubs in the US. Here are some of the reasons why tech companies in Miami chose the city as their base.

Ranked second ‘Emerging Tech Cities in the US’ - Forbes ranked Miami as the second-best US city for tech in 2021.

Tech companies in Miami – Several big named tech companies relocated to Miami in 2020 and beyond. High profile tech firms based in Miami include Spotify, Reef Technology, Papa and Blackstone.
Miami established as a destination fintech and crypto – Signifying the city of Miami’s rising status within the crypto world, the Bitcoin 2022 conference was held in the city when the Miami Bull statue was unveiled. This statue was based on the Wall Street charging bull in New York and was Miami’s statement the city’s intentions to be the first major city to engage with cryptocurrency and commitment to propelling Miami’s position in the world financial market.
Miami infrastructure built for tech – The Network Access Point (NAP) of the Americas is based in Miami, a 750,000 square foot primary internet exchange center and communication gateway to commercial centers in Latin America, the US and Europe. In addition to this, Miami also boasts speeds of 1,000mbps or higher for most of its population, making Miami a natural tech hub location thanks to the city’s impressive tech infrastructure.
Access to tech talent in Miami – Florida International University (FIU) Knight Foundation School of Computing and Information Sciences provides the technical talent pipeline required to support businesses moving to Florida to take advantage of its status as one of the best tech hubs in the US. Additionally, FIU has pledged over $106 million over the next decade for advancements.

Miami Mayor’s tech vision - Miami further proved its readiness to provide high quality tech talent for businesses, by the Mayor’s October 2022 commitment. As part of the Miami mayor’s vision of a technologically-centric Miami, in October 2022, the Venture Miami Scholarship Program was announced. This program is a positive sign for tech businesses hoping to source talent in Miami as it aims to provide financial support to Miami students who want to major in STEM programs in college. In addition to this. Miami Dade College also recently opened an Artificial Intelligence Center for tech education.
Miami invests in tech companies – Venture capital funding is big business in Miami. Venture capital has steadily been flowing into Miami, growing from $940 million in 2013 to a record $5.6 billion in 2021. The number of venture backed tech companies is only expected to go up over the years, making Miami the perfect destination for growing tech businesses.
Higher tech salaries than Tampa – If you are recruiting in Miami, or trying to convince tech employees that Miami is a good place to live, the higher tech salaries may be attractive. According to the US BLS. the average salaries of popular tech roles in Miami included:

Computer Systems Analysts - $93,480
Software developers - $105,790
Computer Programmers - $90,200
Database Administrators - $96,980

Cons of Starting a Business in Miami

Cost of living in Miami is relatively high – As a tourist hotspot, the prices in Miami can be inflated due to tourist demand, especially during the holiday season. According to payscale, the cost of living in Miami is 17% higher than the national average, with this figure rising to 40% higher for housing and 21% for groceries vs the rest of the US. In July 2022, economists in Florida analyzed Florida rent prices and found, average rent nationwide jumped 13.2% year-over-year to $2,031. Of this Miami had the second highest rent prices in Florida, rising 25% year-over-year to an average rent cost of $2,841. However, it is worth noting that the extra income from no personal income tax may outweigh the costs of moving to Miami.

Tropical storms are common in Miami – Miami's pro of a tropical climate leads into the con of high humidity and tropical storms. Flooding as a result of storms is common in Miami which contributes to power outages and business disruptions in the area.

Commute time in Miami – If you are considering starting a business in Miami, one con is the amount of time you may spend bumper to bumper for your office commute. Miami ranked as the ninth most traffic-congested areas in the US in 2019. However, in comparison to Tampa in Florida, Miami’s public transportation is a good resolution to this issue.

Starting a Business in Miami? We’ll Help You Get Feet on the Ground

Hopefully our list of Miami pros and cons has helped guide your decision on whether starting a business in Miami, Florida is for you. From our experience of working with clients moving business to Florida, often the choice is between Miami or Tampa.

If you’re ready to start a business in Florida, as an employer of record, we can compliantly engage and payroll your employees on your behalf, with or without a local entity. So, all you have to do is focus on is growing your business in Miami.

Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.

Starting a Business in Miami Pros and Cons