Miami – center of entertainment and pleasure, known as a “America’s Riviera” not only attracts tourists form all over the world, but in fact a popular destination for entrepreneurs.
Basic information about Florida:
- 27th US state, located in the south of United States
- With total area of 170,304 square kilometers with nearly 20 million inhabitants
- Tallahassee is a capital , but obviously Miami is the most popular city
- Pleasant temperature, that attracts tourists
- Important! Due to the climate and geographical location is Florida frequently targeted by the devastating hurricane that lives there during their season from December to March, so be careful 😉
If you look at the United States business establishment sector, you will find, that everything is very individual. Every single state is made for different type of businesses and you should be very careful, when you choose one.
- In Florida, company, based in the state is suitable for investors who wish to do business physically, non-resident companies are not recommended.
- Foundation is relatively quick and easy, the whole process takes between two to five business days, depending on the speed of the authorities. Saving your time-saving your money, we say!
- Only one shareholder and director is required, it can be performed by the same person , so if you are a solo businessman, Florida has perfect conditions
- No minimum capital requirements, like some states
Taxation. Before doing business in USA, please go through this information.
In the United States there are two basic types of companies with different ways of taxation.
- First is Corporation (C-Corp), which pays tax on corporate income at both federal and state levels. If the company wants to pay dividends and has yet to pay withholding tax on dividends, which is also a federal state. Taxes of that type of company are very high. This type of company can be optimized by asking the US tax authority to allow us to pay taxes only on a personal level (this creates an S-Corp). This, if a company earns a hundred thousands.
- Second basic type is a Limited Liability Company (LLC), where earnings are taxed directly to the shareholders in proportion to their ownership of the company. Florida "S" corporations are not taxable entities. This means they're not required to file state income tax returns after the first year resulting in saved tax dollars.
- Florida state income tax is an additional 5.5%. The advantage is that Florida imposes zero tax on income of individuals. Base rate "sales tax", which is added to physically sold products is 6%.
Tax system in the United States.
Tax system in the United States is quite complicated and extensive. There are federal taxes that are used to finance projects of federal and state taxes, which is determined by each state separately. Precisely because of state taxes, some states are better for business, because the sizes of these taxes can be a noticeable difference. The federal tax on corporate income ranges from 15% to 35% depending on their taxable income. The lowest rate applies to earnings $ 50,000. Generally, the tax system in the US is very comprehensive, and effective adjustment of structure and selection of the company is always useful to their situation individually consulted with professionals.
Discuss Establishment in USA, choose the best state with Zenron Agent!