Florida ranks among the top states in which to start a business, thanks to its competitive corporate income tax rates, strong economic growth, and lack of personal income tax. The state attracts a range of industries – including international trade, tourism, and agriculture – making it fertile ground for new ventures.

Below, we’ll look at Florida’s business environment and information on how to register your business and start operating. Whether you’re a first-time entrepreneur or looking to expand your business footprint, here’s what you need to know to start a business in Florida.

What’s in this article?

• What sets Florida apart from other states for entrepreneurs?
  
• How to start a business in Florida
  
• Industries that are most likely to benefit from registering in Florida
  
• Advantages and disadvantages of starting a business in Florida
  
• Resources for starting a business in Florida
  

What sets Florida apart from other states for entrepreneurs?

Here’s how Florida differs from other states regarding starting a business:

• No personal income tax: Florida is one of the few states with no personal income tax, which makes it an attractive destination for entrepreneurs and high-income individuals who want to maximise their earnings.

• Tourism and hospitality: Florida is a leader in tourism and hospitality, attracting millions of visitors every year and creating a vast market for entrepreneurs in the hotel, restaurant, theme park, and entertainment industries.

• Real estate market: Florida has a strong real estate market, driven by population growth, tourism, and investment. This presents opportunities for entrepreneurs in real estate development, construction, property management, and related services.

• International business hub: Florida is a major gateway to Latin America and the Caribbean, with several international airports and seaports that facilitate international trade and business connections.

• Climate and lifestyle: Florida’s warm climate, beaches, and outdoor lifestyle are a major draw for entrepreneurs seeking a high quality of life.

• Aerospace and aviation: Florida has a strong presence in the aerospace and aviation industries and hosts major players such as the National Aeronautics and Space Administration (NASA), SpaceX, and several aerospace manufacturers. This provides opportunities for entrepreneurs in aerospace technology, space exploration, and related fields.

• Healthcare and life sciences: Florida has a growing healthcare and life sciences sector, with a concentration of hospitals, research institutions, and medical device manufacturers. This presents opportunities for entrepreneurs in healthcare technology, pharmaceuticals, biotechnology, and medical services.

• Regulatory environment: Florida has a business-friendly regulatory environment with fewer restrictions than many other states. This reduces compliance costs and administrative burdens associated with starting and running a business.

How to start a business in Florida

Once you have a comprehensive business plan and you’re ready to get your business off the ground, you can follow this step-by-step guide on how to formally register and begin doing business in Florida:

Choose a name

Choose a unique name, then confirm its availability in Florida by searching the Florida Department of State’s Division of Corporations Sunbiz website. If you’re operating under a name other than your legal name, you’ll need to register a fictitious name (also known as “doing business as” [DBA]). If you want to protect your business name, consider trademarking it.

Choose a corporate structure

Every business structure has different legal and tax implications. Consult with a lawyer or accountant to determine the best fit for your business. Here are the types of business structures:

• Sole proprietorship: This is the simplest business structure. A downside of a sole proprietorship is you’re personally liable for business debts.

• Partnership: In this business structure, two or more people share ownership and responsibility.

• Limited liability company (LLC): This structure offers personal liability protection and flexible management options.

• Corporation (S corp or C corp): This business structure is a separate legal entity with shareholders, directors, and officers. It has the strongest liability protection but more formalities.

Choose a registered agent

Every Florida business must have a registered agent who can receive legal documents and official notices on behalf of the business. You can be your own registered agent if you’re a Florida resident, or you can hire a registered agent service.

File registration documents

File the necessary registration documents to register your business with the state. LLCs must file articles of organisation, and corporations must file articles of incorporation. You must also pay the filing fee associated with registering your business, online or by mail.

Apply for relevant licences and permits

Depending on your industry and location, you might need different federal, state, or local licences and permits to operate legally. These could include sales tax permits, professional licences, zoning permits, or health permits. Research the requirements for your business type and location to ensure compliance.

Apply for an EIN, and open a bank account

Register for an Employer Identification Number (EIN) and open a business bank account to start doing business.

• EIN: An EIN is like a Social Security Number for your business and is required for tax purposes. You can apply for an EIN through the IRS website.

• Business bank account: A business bank account lets you separate your personal and business finances.

Research insurance and legal obligations

Ensure you have the appropriate insurance coverage and are clear on your legal responsibilities before doing business.

• Insurance: Necessary insurance coverage might include general liability, property, and workers’ compensation insurance.

• Taxes: Register with the Florida Department of Revenue for sales tax and other relevant taxes.

• Local regulations: Check with your city or county for any additional local regulations that might apply to your business.

Industries that are most likely to benefit from registering in Florida

Registering in Florida can be particularly advantageous for these industries:

• Tourism and hospitality: Businesses catering to tourists – such as hotels, restaurants, entertainment venues, and water sports activities – have an advantage in Florida thanks to its beaches, theme parks, and warm climate.

• Real estate and construction: Florida’s growing population and desirable location drive demand for housing and commercial spaces.

• Agriculture: Florida’s climate supports a strong agricultural industry, and the state is a natural home for agribusinesses and food processing businesses. Citrus fruits, sugarcane, tomatoes, and other crops are major contributors to the state’s economy.

• Aerospace and aviation: With major hubs such as the Kennedy Space Center and a strong presence of aerospace businesses, Florida is a thriving environment for the aerospace and aviation industries.

• Healthcare and life sciences: Florida’s ageing population and medical research institutions have created a favourable market for healthcare services and innovation focusing on senior care, medical devices, and pharmaceutical research.

• Marine industries: Florida’s extensive coastline and waterways make it a hub for marine industries. Boat manufacturing, fishing, and marine tourism are all prominent sectors in the state.

Advantages and disadvantages of starting a business in Florida

Florida offers a favourable climate for starting a business thanks to its tax advantages, diverse economy, and supportive government policies. But entrepreneurs should carefully weigh potential risks and challenges before making a decision.

Advantages

• No personal income tax: This is a major draw for entrepreneurs and employees. It allows for greater financial flexibility and helps attract skilled workers.

• Relatively low corporate taxes: Florida’s corporate tax structure is more favourable to businesses than that of many other states.

• Strong economy and diverse industries: Florida has a diverse economy with strengths in tourism, agriculture, aerospace, and healthcare. This provides a wide range of opportunities for new businesses.

• Large and growing population: Florida’s large – and growing – population offers a substantial customer base.

• Business-friendly regulations: The state government aims to create a business-friendly environment with straightforward regulations and processes.

Disadvantages

• Natural disasters: Florida is prone to hurricanes and other natural disasters, which can disrupt business operations and cause substantial financial losses.

• Competition: The state’s large population and diverse industries also mean increased competition for new businesses.

• Cost of living: The cost of living in Florida, particularly in popular areas, can be a hurdle for startups with limited budgets.

Resources for starting a business in Florida

Here are some important resources for starting a business in Florida:

State government resources

• Open MyFlorida Business: This official state portal provides step-by-step guidance for starting, operating, and growing your business in Florida. It has information on licences, permits, taxes, and regulations.

• Florida Department of State, Division of Corporations: This is where you register your business entity and file annual reports.

• Florida Department of Revenue: This department handles business tax registration and collection.

Business support organisations

• Florida Small Business Development Center (SBDC) Network: This network provides free consulting, training, and resources for small businesses.

• SCORE: This business mentoring organisation has free mentoring and workshops from experienced business professionals.

• FloridaMakes: This organisation helps manufacturers improve their competitiveness and access resources.

• SelectFlorida: This state economic development organisation offers assistance and resources for businesses of all sizes.

Local resources

• Local chambers of commerce: Local chambers of commerce provide networking opportunities, business development programmes, and advocacy for local businesses.

• Economic development organisations: Many counties and cities in Florida have economic development organisations that provide resources and assistance for new businesses.

• Small-business incubators and accelerators: These programmes provide mentorship, office space, and resources to help startups grow.

Online resources

• US Small Business Administration (SBA): This agency has a wide range of resources including loans, grants, and counselling for small businesses.

• MyFlorida.com: This official portal for the Florida state government provides services and information.

• Florida Trend: This business magazine has articles and resources on Florida’s economy and industries.

Additional resources

• Industry-specific associations: Many industries have associations or organisations that provide specialised resources and support for businesses in their field.

• Professional services firms: Consider consulting with lawyers, accountants, and others who specialise in business formation and compliance in Florida.

• Networking events: Attend industry events and conferences to meet other entrepreneurs and potential partners.