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Doing business in

Florida

Navigate Florida’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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Business Overview

Florida boasts a diverse economy driven by tourism, agriculture, aerospace, and international trade. With no state income tax, a strategic geographic location for international commerce, and a growing technology sector, Florida offers businesses access to Latin American markets and a business-friendly regulatory environment.

Key Facts & Figures

Category Details
Capital Tallahassee
Major Cities Jacksonville, Miami, Tampa, Orlando, St. Petersburg
State Sales Tax Rate 6%
Local Sales Tax Rate Up to 2.5% additional county sales tax
Corporate Income Tax 8.7% flat rate
Physical Nexus Threshold Physical presence through employees, offices, inventory, or representatives
Economic Nexus Threshold $100,000 in annual sales

Did you know?

Florida’s aerospace and aviation industry generates over $150 billion in economic impact annually, with Cape Canaveral being a global hub for space exploration.

Setup & Compliance

Florida offers a business-friendly environment with relatively straightforward formation processes.

Florida Business Formation Steps:

  1. Select Your Business Structure: Consider Florida’s tax advantages when choosing your entity type.
  2. Register Your Business: File formation documents with the Florida Division of Corporations.
  3. Obtain Required Licenses: Secure necessary state, county, and municipal business licenses.
  4. Register for Tax Accounts: Register with the Department of Revenue for sales tax collection.
  5. Meet Employer Requirements: Register with the Department of Revenue for reemployment tax if hiring employees.

Key Compliance Factors:

  • Annual Reports: Florida entities must file annual reports between January 1 and May 1 each year.
  • No State Income Tax: Florida does not impose personal income tax, benefiting pass-through entities.
  • Sales Tax Collection: Businesses must collect 6% state sales tax plus applicable local surtaxes.
  • Industry Licensing: Numerous professions and industries require specialized licenses through the Department of Business and Professional Regulation.
  • Fictitious Name Registration: Businesses operating under a name other than the legal entity name must register a fictitious name (DBA).

Hiring & Payroll

Florida offers a relatively employer-friendly environment with limited state-level regulations.

Florida Payroll Requirements:

  • Reemployment Tax (Unemployment): Rates from 0.1% to 5.4% on first $7,000 of wages.
  • No state income tax withholding (Florida has no state income tax).
  • Workers’ Compensation: Required for construction industry with 1+ employees or non-construction with 4+ employees.

Florida Employment Laws:

  • Minimum Wage: $11.00 per hour (increasing incrementally to $15.00 by September 30, 2026).
  • No state-mandated sick leave or family leave.
  • New hire reporting required within 20 days.
  • No state-specific requirements for final paychecks.
  • Florida is an at-will employment state with right-to-work laws.

State Incentives

Florida offers robust economic incentives to promote business growth and job creation.

Key Business Incentives:

  • Quick Response Training Program: Workforce training support for businesses.
  • Entertainment Industry Financial Incentive Program: Support for film and media production.
  • Qualified Target Industry Tax Refund: Incentives for businesses in targeted industries.

Small Business & Startup Support:

  • Florida Small Business Development Center Network: Comprehensive business consulting.
  • Black Business Loan Program: Financial support for Black-owned businesses.
  • Space Florida Bonds: Support for aerospace and technology businesses.

Regulatory Considerations

Florida maintains a business-friendly regulatory environment with clear guidelines.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer information and requiring breach notifications.
  • Environmental Compliance: Regulations protecting coastal and marine ecosystems.
  • Professional Licensing: Required for various service-based professions.

Additional Regulatory Areas:

  • Tourism and Hospitality Regulations: Specific guidelines for service industries.
  • Insurance Compliance: Strict regulations for insurance and financial services.

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