If you run a business, you’ve probably heard about the growing trend of companies relocating to Florida. With its sunny climate, business-friendly tax policies, and affordability compared to other states, the Sunshine State has become an increasingly popular destination for businesses looking to reduce overhead costs while boosting employee satisfaction.
However, is relocating your company to Florida all it’s cracked up to be? Will the move pay off with increased profits and productivity? As you weigh the pros and cons, here’s what you need to know about the benefits of moving your business to Florida.
Benefits of Relocating to Florida
If you run a business, relocating to another state represents a monumental decision that requires careful evaluation of the pros and cons. When considering a significant move, one state that more and more companies are choosing is Florida.
Its warm climate, business-friendly tax structure, talented workforce, and other key attributes make Florida an appealing destination for out-of-state firms looking to expand or seeking fresh geography. What exactly are the bottom-line benefits of moving your company to Florida? Here are the top incentives attracting operations to plant new roots in the Sunshine State.
Lower Operating Costs
Florida’s tax structure allows businesses to retain more profits than other states. There is no personal income tax and no estate tax, which leaves more money in the pockets of business owners and employees alike.
According to Forbes, commercial rents also tend to be around 30% lower than the national average. With cheaper real estate and fewer taxes, Florida makes opening up a new location or expanding existing operations easier.
In addition to the direct tax and rent savings, the warm climate lowers utility bills and other secondary costs. Far less is spent on heating bills and snow removal services compared to northern states. The abundant sunshine and mild winters make it easier to keep operating costs down.
Access to a Large Talent Pool
Florida has the nation’s third-largest labor force. Over 10 million residents make for an immense pool of potential talent to recruit from as your company scales up operations.
Florida’s workforce is highly diverse and educated and possesses key skills across industries like hospitality, healthcare, finance, and more. The state is also attracting new residents faster than anywhere else in the U.S. Over 900 people move to Florida per day on average.
Many are employees getting transferred down by the growing list of major corporations with regional HQs in Florida, including American Express, Microsoft, and Boeing. This steady influx of working professionals makes finding qualified candidates to join your team easy.
Increased Employee Satisfaction
Beyond direct business factors like taxes and real estate, one of the biggest perks of relocating to Florida is likely to be happier employees. Florida is routinely ranked one of the best states for work-life balance. Employees can take advantage of outdoor activities year-round, from beach trips to theme park getaways.
Relocated employees also benefit from Florida’s lack of income tax. The average worker moving from New York to Florida sees their take-home pay go up by $15,000 per year. With more sunshine and savings, your team will likely be more motivated, engaged, and loyal.
Business-Friendly Regulations
Florida offers a regulatory climate that makes it simpler to operate a business. There are incentives like cash grants, tax exemptions, and bonding programs to attract out-of-state companies.
The state also limits regulations that drive up costs for entrepreneurs and companies. There are no government-mandated family leave or sick leave policies, for example. The flexible business regulations in Florida empower companies to customize their employee benefits programs.
Thriving Industries
The industries thriving in Florida represent prime opportunities for companies looking to expand or relocate operations. Sectors like hospitality, healthcare, logistics and distribution, aviation and aerospace, financial services, and more all have an established presence.
Florida’s booming tourism industry powers massive demand for hospitality businesses. Over 122 million visitors spent nearly $100 billion in Florida in 2021 alone. The state’s aging population also drives growth in healthcare, creating openings for everything from assisted living facilities to medical device manufacturers.
Meanwhile, Florida’s geographic advantages have made it a hub for shipping and logistics to serve North and South America. And the state invests billions into infrastructure initiatives like ports and airports to enable trade. The healthy business ecosystem provides a wealth of partnership and growth opportunities across sectors.
Why Are Businesses Moving to Florida?
As the benefits reveal, plenty of compelling reasons drive companies to relocate their headquarters and operations to Florida. Here are some of the top factors attracting businesses:
Cost Savings
The potential for significant overhead savings remains the #1 reason most companies move to Florida. The lack of corporate income and estate tax generates millions in annual savings. Commercial rental rates are far lower than in other parts of the country. For labor-intensive businesses, the low cost of living also helps keep wage rates in check.
Lifestyle Appeal
Beyond dollars and cents, many entrepreneurs and employees call Florida home simply for its lifestyle perks. Florida offers endless opportunities for recreation and relaxation amid sunny weather year-round. Moving to Florida represents a chance to improve work-life balance for many.
Talent Acquisition
Access to Florida’s large and growing talent pool is another benefit luring companies down south. The state’s pipeline of qualified workers enables expansion and growth. Thanks to desirable locations and the lack of income tax, Florida also makes it easier for companies to attract talent.
Favorable Business Environment
Florida’s market-friendly approach to economic development and relatively limited regulations help reduce barriers to entry for new businesses. The state offers a range of tax breaks, grants, and other incentives to continue attracting companies as a growing hub for global commerce. The broader legal and regulatory climate empowers business owners with flexibility.
Thriving Industries
For businesses involved in sectors like hospitality, logistics, healthcare, aviation, and more, Florida offers a chance to situate operations right at the heart of critical industry clusters.
The demand for products and services in these segments continues rising thanks to tourism, retirees, and infrastructure development.
Considerations When Relocating Your Business to Florida
Although the benefits shine through, relocation requires careful planning, too. Here are a few key considerations when moving your company to Florida:
- Research locations thoroughly – Choose a specific metro area and neighborhood that aligns with budgets, workforce needs, and growth plans. Factor in logistics like transportation and recruiting.
- Prepare for compliance changes – Understand Florida’s sales tax policies, business registration processes, and other regulatory shifts. Work with lawyers and accountants to ensure a smooth transition.
- Help employees relocate – Offer relocation assistance and onboarding plans to help employees acclimate. Promote Florida’s benefits to get staff excited about the move.
- Expansion plan – Look for flexible real estate options that allow room to grow operations over time. Seek opportunities to meet expected market demand increases.
- Adjust branding and marketing – Announce the new corporate HQ and highlight Florida as a customer selling point. Repurpose messaging to reflect the relocation.
Relocating to Florida: FAQs
How much do taxes drop by moving to Florida?
Florida levies no personal income tax, while most states have income taxes near 5% or higher. For a company with over $1 million in profit, those income tax savings could exceed $50,000 per year. Estate taxes offer more significant savings for business owners.
How difficult is it to register and establish a business entity in Florida?
Florida makes starting a business easy. You can form an LLC or corporation with the state electronically in a single day after drafting organizational documents. Register for tax IDs and business licenses and undergo regulatory processes like any other state.
What types of incentives exist for relocating to Florida?
Florida provides cash grants, tax refunds, infrastructure aid, and other incentives to companies bringing high-paying jobs to the state through relocation or expansion. Incentive values can reach millions of dollars for large employers.
What are the disadvantages to consider about moving to Florida?
Hurricane risks and year-round heat pose challenges in Florida. The fast pace of growth also makes commercial and residential real estate more expensive in major metros. Prepare for tight, competitive talent markets for specialized roles in growing sectors.
How do I estimate employees’ willingness to relocate to Florida?
Survey staff to gauge interest in moving or opening a new Florida office. Assess workforce composition – younger, single employees may be most receptive. Consider rotation programs for staff not wanting to relocate full-time. Highlight relocation packages and quality-of-life perks.
Why are companies moving to South Florida?
South Florida, particularly the Miami metro area, offers increased access to global commerce that many companies find advantageous. The region is a gateway to Latin America and a hub for international banking, trade, logistics, and immigration.
Miami International Airport serves as a major cargo and passenger airport connecting North America, Europe, and Latin America. South Florida’s diversity also helps attract multi-lingual talent to staff international business functions. These and other globally-focused attributes drive relocations to the southern half of the state beyond Florida’s broader business incentives.
Final Thoughts
Relocating your company’s office or headquarters to Florida remains one of the hottest business trends nationwide. Driven by Florida’s low costs, tax savings, talent gains, and other benefits, more executives are choosing growth in the Sunshine State. Florida offers an optimal launchpad to boost profit margins and access new markets across the Americas.
If you are considering your company relocating to Florida, ARC Relocation can help. Contact ARC Relocation today to set up a free consultation call.