Unfortunately, some states today are simply taxing themselves out of consideration for new businesses, while others — such as the state of Florida — are using their state tax structure to make themselves more appealing to prospective business owners.
Invest in Florida — Less Taxes, More Opportunity
In Florida, the only businesses that are required to pay state income taxes are traditional corporations, or C corporations.
Very few small businesses start out as traditional corporations. Generally, new businesses begin as either sole proprietorships or S corporations, or limited liability partnerships. Neither of these are required to pay state income taxes in Florida.
In addition, individuals in Florida also aren’t required to pay state income taxes. So Florida business owners don’t have to pay taxes on income that passes through his or her small business.
Invest in Florida — Lower Corporate Income Taxes
When small businesses grow large enough to become C corporations, their tax burden is still lower than most other states. The standard corporate tax in Florida on federal taxable income is just 5.5 percent.
Exemptions can lower a small business’s corporate tax rate even more. Corporations are required to pay the higher amount of the standard rate less all exemptions and credits. Or, they can pay an alternative minimum tax rate of 3.3 percent.
However you look at it, that is still significantly lower than the standard tax rate of many other states, making Florida one of the most attractive places for launching a new small business.
If you are considering ways to invest in Florida, consider a franchise opportunity such as Amazing Explorers Academy. Not only can you benefit from one of the most lucrative state income tax structures in the US, but you can invest in an innovative business model that appeals to a rapidly growing mass market of prospective customers.