You’ve been thinking about launching a company in Florida in the coming year. Smart thinking. According to business guru Brian Ferdinand in a recently released article, Florida in general—and Miami in particular—should be on your radar due to their many tax advantages. Miami is also known for its progressive legislation, which has allowed it to remain a global hub for both expanding and new businesses. Here, we’ll specifically explore the tax-related reasons why Miami is an attractive location for launching a small business in 2021.
Miami, Florida, Tax Benefits
In the recent article, Brian Ferdinand, the managing partner of SoBeNY, emphasizes that Florida doesn’t charge limited partnerships or subchapter S-corporations any income tax. Likewise, individuals do not have to pay taxes on their personal income in Florida, and no property tax is assessed at the state level, either.
Florida also doesn’t require people to pay a tax on their capital stock, and business inventories also aren’t subject to a property tax. In the same manner, no property tax is assessed for any good that remains in transit for as long as 180 days.
Furthermore, no use and sales taxes are placed on any goods that are produced or manufactured in Florida with the intent of being exported outside of the state. As a Florida business owner, you also won’t have to worry about paying a sales tax when purchasing a raw material that you will incorporate into a product that you will later sell. This material may range from packaging to a non-reusable container, for example.
Additional Florida Tax Benefits
In addition to avoiding a wide range of taxes in Florida, you can take advantage of many use and sales tax exemptions in Florida. For instance, tax exemptions have been placed on any equipment or machinery that you will use to process, produce, or manufacture items for sale if you are an expanding or new business.
Tax exemptions have additionally been placed on the materials, labor, and parts used to repair equipment and machinery. In addition, you are exempt from paying a tax on the electricity that you use during the manufacturing process.
Equipment and machinery that are mostly used for research and development also will not be taxed in Florida. In addition, if you plan to start a production company in the Sunshine State, you’ll receive tax exemptions for making television series, sound recordings, or music videos in 2021 and beyond.