Why create a company in Florida, Miami, Orlando… and not in Delaware?
Whether in Miami or Orlando, entrepreneurs from large European cities are particularly fond of the West Coast of the United States to set up their business. The state of Florida (where the cities of Miami, Tampa, etc. are located) offers a good international image, which favors the establishment of a company in this region. In addition, you will be able to open a bank account for your entity in the USA.
Why choose LLC in Florida rather than Delaware?
There are several reasons why you might want to form an LLC in Florida rather than Delaware. One is that Florida has no income tax, which can save you money if your entity generates a large amount of income. Another reason is that Florida is one of the states that has more flexible rules for LLCs than Delaware. For example, in Florida, you only need one member to create it, whereas in Delaware, you need at least two. You also do not need to register your business in Delaware if you choose to register it in Florida.
One of the disadvantages of setting up in Florida is that it is not considered an offshore company. Therefore, you will not receive the same tax benefits as if you were to set it up in a jurisdiction like the Cayman Islands. However, if you operate primarily in the United States, Florida is still a good choice for your Limited Liability Company.
Many French people, when talking about tax havens, automatically think of Delaware.
The advantages of creating a company in Florida and opening a bank account
Starting your business in Florida has many advantages. The State of Florida offers an ideal setting for doing business. Florida has a good image and a favorable environment for businesses because it offers many tax advantages (especially regarding taxes). In addition, starting your own business gives you access to a large market. Orlando is a great place to start your business. The city is home to a large number of businesses and offers a variety of business resources (co-working space, etc.).
Once you have gathered all the documents, decided on the headquarters of your company, you can move on to the banking stage.
Many people want to know if it is possible to open a bank account in the US without being a resident or US citizen. The answer is YES, it is possible to open one with Mercury or Chase for example.
However, opening a personal bank account requires proof of residence in the USA (water, electricity, telephone bill, etc.) even if you are not a resident/citizen of the USA.
Starting your own business in Florida is a great way to get started in business.
Everything you need to know about starting a business in Florida: the highlights
The first step is to choose a name through the public registry to see if that name is available in Florida. Once your company is domiciled in Florida, you will then obtain an Employer Identification Number (EIN) from the IRS. Our firm will take care of all the procedures. You will use this number to open a business bank account and to declare your taxes by May 1st.
The creation of a company in Florida allows you:
- Save on taxes, an LLC is not subject to the same taxation as other corporations (you must pay before May of the current year for example);
- Limit your liability, which means that you are not personally responsible for the debts and liabilities of the company;
- Opening accounts at the bank is facilitated;
- Have a reduced sales tax rate (the tax you owe is reduced compared to another state);
- To benefit from a brand image of this state.
All of these elements make LLCs a popular choice for small businesses and startups.
Overall, forming an LLC in the state of Florida is a relatively simple and straightforward process. After doing a good market study and business plan, it will be easy to get started. In addition, it offers many benefits and protections to its owners, making it an excellent choice for those looking to start a business.
Legal forms to create your company in Florida
For people wishing to create a company in the United States because it is more advantageous, there are two types of companies recommended in the United States, the LLC and the C Corporation. The choice of the legal form depends on the jurisdiction in force.
The most common form in the USA is the Limited Liability Company, better known as LLC.
The French who want to settle on the West Coast are particularly fond of the LLC.
Choose Florida and choose Merritt Middle East
Florida is the state of choice when you decide to start a business in the United States.
Our firm in Orlando, Florida takes care of all the administrative procedures for the creation of a company in the USA and the opening of bank accounts in reputable institutions in the USA.
For more information, please contact us at firstname.lastname@example.org
Located in the southeastern United States, the state of Florida attracts more and more expatriates each year. Whether they are investors, professionals or young students, all are seduced by the “Sunshine State”.
The mild climate, white sandy beaches, developed infrastructure, attractive real estate market and of course, a lenient tax system make it the ideal destination on the East Coast of the USA. Florida is the fourth most populous state in the Americas and also one of the most prosperous.
Florida seduces on all levels, here are the reasons why.
Immigrants in Florida
The state of Florida is as we have seen the fourth most populated state in the United States. Many immigrants from all over the world come here to try to conquer America. But not only, many American retirees also come to spend their old age under the Florida sun.
The real estate market in Florida
The real estate market is very attractive in this part of the country. Very good opportunities exist which attracts investors from all over the world. The prices of real estate in Florida are often lower than those in Europe, hence the interest for real estate in Florida. If we add sunshine all year round (or almost) then we do not hesitate and we settle in Florida.
Taxation as mild as the weather
The tax system in Florida is very lenient and offers many advantages to company founders and also facilitates the obtaining of visas. As a matter of fact, any investor who would invest USD 500,000 in a company could be entitled to a green card if the company presents positive financial results and creates and maintains jobs.
Unlike California, where the corporate income tax is 8.8 percent, in Florida it is only 4.458 percent. In addition, the state constitution states in black and white that the state will not levy income taxes on individuals.
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Schools in Florida
In order to revitalize the state, Florida has tried to attract as many young families as possible and has therefore relied heavily on the educational offer. The local authorities have therefore relied on the establishment of very good schools because according to them, good schools attract good students who encourage the schools to seek excellence.
In Florida, there are many students attracted by the academic potential, with universities like the University of Central Florida for example.
The cultural offer in Florida
Florida offers a multicultural environment that is suitable for everyone.
There is an ever-increasing array of cultural entertainment available, making the region an even more attractive place to stay. Events, concerts, museums, national parks, etc. are just some of the activities that make you enjoy Florida.
Florida is also known to have many attractions such as the famous Walt Disney park for example. There is something for everyone.
If you choose to live in Florida, be sure not to miss anything in terms of entertainment and this no matter your budget.
Temperatures in Florida
The climate in Florida is very mild and can be compared to the south of France. It is a subtropical climate, with hot and humid summers and dry but mild winters.
Nature in Florida
Florida, unlike many other states, is a “green” state. Who doesn’t know the Everglades? The crocodiles?
Florida is a state full of wild animals. It is quite common to see a couple of peacocks crossing a road and blocking the traffic, it is also possible to see alligators in the Everglades, racoons, etc.
If you are still hesitating to settle in Florida, this list should help you to see more clearly.
The Merritt firm, based in Orlando, will assist you in your company creation project and can also be your Registered Agent.
Contact us for more information: email@example.com
Have you heard about “the American dream”? Well, many of you have taken the plunge and conquered the American market. The United States is one of the favorite destinations when you decide to boost your career, create your company, etc.
If you decide to settle in the Sunshine State (Florida), you will need to familiarize yourself with the rules and laws of the country but also and especially with the tax system.
Although Florida offers a much more flexible tax system than France, it is still very specific unlike the 49 other states in the United States.
In the United States, the tax system is a bit complex. People have to pay different taxes at the federal and state level. But not only that, there are also taxes at the city and county level… taxes in the United States are endless.
Translated with www.DeepL.com/Translator (free version)
Which tax treaties between France and the United States?
here are two (2) tax treaties between France and the United States. The first one dates from 1978 and the second one from 1994.
A double taxation treaty (DTT) is a treaty concluded between two (2) States, which aims to avoid double taxation of persons and companies. An important point is the determination of the tax residence, i.e. the place of taxation. The goal is that the person or company is not taxed once in each country for the same income. There are of course conditions, which can be found in article 4 of the Franco-American convention of 1994 to determine the country of your tax residence (in hierarchical order):
- The country where you have your permanent home
- The country where you have your center of vital interests*
- The country of your habitual residence
- The country of your nationality
To be considered a U.S. tax resident, you must meet at least one of the following criteria:
- Be a U.S. Citizen;
- Be a Green Card holder;
- Be present in the United States for at least 183 days;
- Be present in the United States for 183 days according to the following calculation
- Number of days spent in year N: + 1/3 of the number of days spent in year N-1 + 1/6 of the number of days spent in year N-2.
A tax treaty therefore avoids double taxation and makes the transfer of assets easier.
Taxes in the United States are administered by the Internal Revenue Service, better known as the IRS. State taxes are administered at the state level.
Taxes in the USA
What about the wealth tax in the US?
Good news, there is no wealth tax. The United States, unlike France, avoids any mechanism that could scare away the wealthiest.
The federal tax in the United States is also called the national tax. As in France, the scale varies according to family situation and income. It is a progressive tax imposed on income that varies from 10 to 35%.
There are possibilities to reduce this tax through the deductions for professional expenses. If you are the manager of a company that makes less than $50,000 in income, then the rate of this tax will be 15%. The advantage is that this tax is based on the possibility of deducting professional expenses (within a certain limit).
Income tax is deducted at source, i.e. the employer collects the tax and remits it to the State. Before the tax is deducted, deductions and allowances are applied.
What is the tax rate in the United States?
- For individuals: Rates vary from 10% if you earn less than $8,925 to 35% if you earn more than $398,350 to 39.6% for incomes over $400,000. This can also change depending on your family situation.
- For corporations: The rates vary from 15% if your taxable income is less than or equal to $50,000 to 38% if your corporation has more than $15 million in taxable income.
The state tax
- Individuals: The state tax is more commonly known as the “state tax”. In the State of Florida, it is mentioned in its constitution that there was no personal income tax.
In reality, it did exist but was abolished in 2007. At that time it was called the “intangible personal property” tax.
- Corporations: Corporations in the State of Florida are subject to a 5.5% tax on their net income.
Other taxes: local taxes
The calculation of these taxes is based on declared gross income. Both residents and non-residents are affected by these taxes. In brief, some of these taxes:
- The Property Tax: in French we speak of the property tax. The basis of this tax is the real estate of individuals and companies.
This tax amounts to approximately two percent of the market price of the property in question. Note that this tax is tax deductible.
In Florida, there is also the Homestead Exemption, which allows a Florida homeowner to benefit from a tax abatement of up to $50,000 on the property tax of their principal residence.
- There is also the “Sales and Use Tax” which is similar to the local VAT that is added to the purchase price of any type of consumer goods. This tax is seven percent in Miami County…a far cry from the 20 percent applied in France.
In contrast to VAT, companies do not deduct Sales Tax. Companies pay this tax to their supplier if they are the final users of the goods. But, if the company collects Sales Tax, it can obtain a certificate that will allow it not to pay tax on goods purchased for resale. Also, it should be noted that there is no sales tax on services.
- Taxes on rental income: According to Article 6-1 of the Convention, rental income from real estate located in the United States is taxable. This income is exempt from taxation in France, but if you are a French tax resident, France reserves the right to take this income into account when calculating its tax rate.
Tax residency is not a subject to be taken lightly, especially in countries such as the United States. An omission or attempt at fraud could cost you dearly. We advise you to get in touch with a tax lawyer in your country of origin to validate all your questions regarding tax residence.
For all matters related to the creation of a company, our local team can welcome you and accompany you. For more information: firstname.lastname@example.org.