The Pros and Cons of Doing Business in Florida – Top Issues Examined by Business Analyst Eric Dalius
Florida is well-known for its welcoming attitude to business. Its business-friendly policies have attracted thousands of entrepreneurs. However, there are also some disadvantages of doing business in Florida that entrepreneurs need to consider before investing. According to Eric Dalius A brief lowdown on the opportunities and challenges that entrepreneurs’ face doing business in Florida:
The overall low tax burden in Florida is among the top attractions for businesses to set up shop there. There is no personal income tax or capital gains tax, according to Money CNN. Like groceries and medicines the corporate income tax is also quite low at just 5.5% . The State’s business-friendly tax regime has prompted many business owners to relocate their businesses to Florida. It take advantage of the low professional and personal tax environment
Easy Access to Capital
Florida also attracts business owners by providing very easy access to capital required for establishing and growing businesses. Besides more than 150 traditional banks, Florida is home to a very large number of venture capitalists. And startup investors that provide a significant amount of investment capital. According to Eric J Dalius, the last five years have witnessed a remarkable surge in interest by venture capitalists and angel investors in promoting Florida-based businesses.
Even though the cost of living in Florida is higher than the national average, it is still lower than the other established hubs of commerce and industry like Chicago, New York, Los Angeles, Washington D.C., and San Francisco. While the cost of housing and transportation can be markedly higher, Florida provides a reasonable business for entrepreneurs. Researching local markets can be productive because they very large variances in the real estate prices depending on the area.
Labor Can Be Costly, Warns EJ Dalius
Because of the booming economy, employees can be expensive and companies find it difficult to retain existing labor pressures. On the other hand, for companies that are willing to pay well, provide attractive benefits, including flexibility of remote working, there is a lot of talent made available by several universities of repute in the state. While the labor market is competitive, business owners are also not fettered by regulations on overtime pay, severance pay, or the compulsion to provide sick leave or vacation benefits.
Very popular as a tourist destination, businesses get the benefit of booming sales in the winter months. However, since the tourist inflow dips considerably in spring and summer, small businesses operating around the year will need to face a significant downturn in business. Hurricanes are a fact of life in Florida and businesses, especially brick-and-mortar can suffer significant damage to their properties and disruption in business.
Florida is a very attractive destination for entrepreneurs with a positive business climate and a booming economy. When compared to the traditional centers of business the cost of living is on the higher side . The labor market, however, is expensive, seasonality of the tourist traffic can be a major factor to contend with.