Florida: The New Hotspot For US Business
Florida has been dubbed the ‘new wall street’ since the pandemic due to the influx of established financial companies and quality talent relocating to the sunshine state. Deutsche Bank, Blackstone Group, and Citadel are just a few of the many big names, considering or already soaking up the sunshine Florida has to offer (and that’s not just the rays). If you are considering expanding to the U.S. or relocating to another state, we’d recommend you consider Florida.
Why are businesses moving to Florida?
Florida Offers a Great Quality of Life
With the shift to conducting work remotely showing no signs of slowing down, some workers are no longer required to be based in larger cities. For the first time, workers can hold the reins on where they work from. As Florida boasts one of the best climates in the U.S., it is no wonder many are favoring the more spacious, sunny state. Additionally, living costs and house prices are generally much lower in Florida when compared with New York, which is enticing remote workers.
The quality of life Florida offers is appealing to businesses who are seeking other cost-effective locations that help them retain top talent. Another major driver for the latest influx has been the state’s ‘open for business’ status one year on since COVID-19. Florida has eased lockdown restrictions faster than other states, making it a more feasible option for leaders seeking to get back to business.
Florida Offers a Business-friendly Tax Climate
Florida’s business-friendly tax advantages make it a profitable location for businesses relocating to the state. The state was ranked amongst the best states The Tax Foundation’s State Business Tax Climate Index, coming in at an impressive fourth place.
Some of the attractive tax incentives Florida offers include:
No corporate income tax on limited partnerships
No corporate income tax on subchapter S-corporations
No property tax on business inventories
No sales and use tax on goods manufactured or produced in Florida for export outside the state
No corporate franchise tax on capital stock
No state-level property tax assessed
High-income workers also benefit from Florida’s relaxed taxations, by not having to contribute to state personal income tax. The option to have more disposable income is a huge attraction for talented remote workers, which in turn, provides businesses with a greater supply of talent to choose from.
...No wonder why Florida’s taxes is one of the most prominent reasons why Florida is becoming a hot spot for businesses relocating to within the U.S.
Florida’s Infrastructure Makes Connecting Businesses Easy
Florida’s world-class infrastructure is a huge selling point for businesses not only seeking to expand across the U.S but internationally as well. For many businesses, choosing to relocate to Florida from New York City, is a wise strategic move. Businesses benefit from being in the same time zone and are within easy reach to connecting flights. Despite the growing popularity of other U.S. locations, such as Nashville and Salt Lake City, Florida shines for being closer in both culture and time to the Big Apple.
Florida is also known for its worldwide connectivity, a reason why it is one of the top five telecom hubs in the world. Miami is home to The Network Access Point (NAP), which is a major switching station for internet traffic to and from Latin America. In a world where the future of business appears to be reliant on virtual calls, you can count on Florida to make sure you’re connected.
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.
Planning to Relocate Your Business to Florida?
A recent study found that at least 20% of Wall Street financial services firms have considered relocating their workers to locations outside of New York, with Florida being one of the hot spots. Low taxes, affordable rent, and accessibility to other states represent the perfect mix of reasons why Florida’s status has elevated.
If you’re thinking about expanding your business to another state, it is important that you’re aware of and compliant with differing state legislation and employment laws. If you need any advice on getting feet on the ground in Florida, we’re here to help.
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.