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:
- Select Your Business Structure: Consider Florida’s tax advantages when choosing your entity type.
- Register Your Business: File formation documents with the Florida Division of Corporations.
- Obtain Required Licenses: Secure necessary state, county, and municipal business licenses.
- Register for Tax Accounts: Register with the Department of Revenue for sales tax collection.
- 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.
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:
- Select Your Business Structure: Consider Florida’s tax advantages when choosing your entity type.
- Register Your Business: File formation documents with the Florida Division of Corporations.
- Obtain Required Licenses: Secure necessary state, county, and municipal business licenses.
- Register for Tax Accounts: Register with the Department of Revenue for sales tax collection.
- 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.
