Why Are So Many Companies Moving to Florida?

Why are companies moving to Florida?

Rising costs and oversaturation in areas such as Silicon Valley, Silicon Beach and New York City make them prohibitively expensive, leading many business owners to consider relocating. Here are 12 reasons they’re choosing Florida.

1. Businesses are rethinking priorities and lifestyles.

The past few years have prompted many business owners to reassess where and how they operate. Some chose to leave dense, cold and high-cost urban areas in favor of a more laid-back lifestyle in sunny Florida. The appeal of single-family homes, year-round outdoor access and a business-friendly environment continues to draw companies and entrepreneurs to the state.

2. Businesses relocate to Florida to follow their customers.

Florida has a large and varied population and a correspondingly powerful economy. In fact, as of 2025, Florida’s gross state product (GSP) was estimated at $1.4 trillion, making it the 14th-largest economy in the world. 

Numerous customer segments are well-represented in the state. For example, Florida cities — particularly Miami — attract young people for their beaches, climate and vibrant entertainment scene. Across the U.S., companies are tracking this migration toward more affordable living, and many are following those customers to Florida.

3. Florida is attractive for small businesses seeking growth. 

Florida offers a variety of business incubators and accelerators to attract and encourage business innovation, particularly in the tech sector. Some examples include Tech Runway in Boca Raton, the Goldstein Business Accelerator in Orlando, and The Launch Pad in Miami. 

When startups flock to an area, more businesses tend to follow because money typically follows opportunity. In a WalletHub study, Florida ranked fourth in the country for average growth in the number of small businesses.

4. Florida appeals to businesses looking for lower costs.

Florida is attractive from a financial perspective for businesses aiming to reduce operational costs. The cost of living is significantly lower in Florida than in states such as New York and California, giving execs and employees greater financial freedom. Real estate, labor and capital are also less expensive in Florida than in many other states.

5. Florida allows employers to tap into a youthful talent pool.

As more young people flock to Miami and other Florida cities, they form a talent pool of educated and motivated individuals. These young go-getters are excited to start their careers, making it easier to hire for a cultural fit. Growing companies are eager to tap this talent pool. 

Likewise, millennial and Gen Z workers are energized by joining forces with startup companies, especially in growing industries such as artificial intelligence, autonomous vehicles and other tech sectors. Additionally, according to the WalletHub survey cited above, Florida has the third-highest percentage of workers who report being enthusiastic about and committed to their work. [Read related article: Managing Tips for a Multigenerational Workforce: From Baby Boomers to Gen Z]

6. Florida’s quality of life helps attract executive talent and support lifestyle-driven industries.

Florida’s year-round sunshine, cultural vibrancy and international appeal don’t just draw tourists — they also help businesses attract and retain senior-level talent. Executives and seasoned professionals are often drawn to cities like Miami, Tampa and Sarasota for their beaches, golf courses, fine dining and arts scenes. These lifestyle perks support business retention while also boosting industries tied to travel, hospitality and entertainment, which are key contributors to Florida’s evolving economy.

7. Florida has low taxes.

Florida is a low-tax environment with no state individual income tax, inheritance taxes or intangible tax; it also has relatively low corporate taxes. Additionally, there is no corporate income tax on limited partnerships or subchapter corporations. Florida does not have a corporate franchise tax on capital stock, and there is no state property tax (although there are local property taxes). Florida has a general sales tax, but at 6 percent, it’s lower than the rates in many other states.

8. Florida has an educated workforce.

With a robust, affordable state university system and renowned private institutions like the University of Miami, Florida provides companies with a well-educated and skilled workforce. Additionally, Florida is a national leader in STEM graduates and offers numerous opportunities for businesses to collaborate with top-tier educational and research facilities.

9. Florida is a gateway to Latin America and the Caribbean. 

Florida is ideally suited for companies doing business in Central America, South America or the Caribbean. In addition to its physical proximity, Florida is home to Miami International Airport, which offers dozens of international flights daily. With an extensive Hispanic population, the state also has a large number of Spanish- and Portuguese-speaking individuals available for hire.

10. Florida is a business-friendly state. 

In Florida, businesses typically face less red tape and receive quicker approvals for permits and other paperwork. State and local permitting fees are often lower than in other states. Additionally, the state offers the Capital Investment Tax Credit to encourage businesses with capital needs to move to Florida. It also offers Quick Response Training and Incumbent Worker Training incentives for companies planning employee training initiatives.

Additional tax credits, funding and business grants are available for research and development, redevelopment and high-impact businesses. Other incentives include sales tax exemptions for manufacturing equipment, R&D equipment, semiconductors, defense and space technology equipment and more.

11. Florida consistently invests in its infrastructure.

Florida is a big state. To maintain a well-connected network, the state government is committed to investing in the construction and maintenance of its roads, highways, bridges and other infrastructure. Its SunPass toll system keeps traffic moving on the Florida Turnpike and other toll roads, and its ports are well-maintained and bustling. It has over 120,000 miles of roads, over 2,700 miles of freight rail tracks and 15 deep-water ports.

12. Florida is a technology hub.

Florida is the number one state in the country for new high-tech business establishments, in part due to the presence of NASA at Cape Canaveral. The state ranks second nationally for aerospace manufacturing and features technology innovation zones, research and development incentives and an educated workforce.

Florida relocation do’s and don’ts

When you’re starting a new business in Florida or relocating a business to the state, be sure to do the following:

• Do be aware of Florida’s seasonality. Florida’s tourist season runs from October through May, when the weather is mild and dry, and it’s cold elsewhere. During this time, there’s a massive influx of tourists and “snowbirds,” or seasonal residents who spend the winter in Florida. There is significantly more traffic, crowding and consumer spending during the high season than during the off-season (June through September).
• Do play some golf in Florida. Florida is home to numerous golf courses where significant business is conducted. If you play, make time to get out on the course. You never know when you might meet a new business partner or client.
• Do tap into Florida’s tourist market. Many people walking around in Florida don’t live there. Depending on the type of product or service you offer, consider how you can market it to the large number of visitors the state attracts.
• Do pay close attention to local permitting. Andrew Cagnetta, CEO of Transworld Business Advisors, advises business owners to be aware of how local regulations vary.  “Don’t assume that the county governments are all-powerful, and you can ignore the city governments,” Cagnetta said. “There are a lot of small cities throughout Florida, and the permitting and rules vary.”
• Do take time to find the right location. Cagnetta also recommends learning the differences between markets before choosing where to relocate. “Don’t assume that all of the metros are similar. There are a lot of differences between Jacksonville, Orlando, Miami and Tampa,” Cagnetta said. “There are huge differences in the communities of Miami, Fort Lauderdale and West Palm.”

Don’t do the following in Florida:

• Don’t dismiss Florida’s hurricanes. Hurricanes are common from June through November and can cause severe damage if they make direct landfall. Install hurricane shutters or board up your windows, especially in coastal areas, and always follow evacuation orders.
• Don’t limit your search to city centers. Real estate prices are booming in Florida, and finding an affordable location in downtown Miami, Tampa, Jacksonville or Orlando may be out of reach. “It is difficult to ‘centrally locate’ a business HQ,” Cagnetta cautioned. However, each of these cities has numerous surrounding communities where you may find a calmer, more suburban and affordable lifestyle. “Realize that housing is still somewhat tight and expensive,” Cagnetta added, “but it may be getting somewhat better.” 
• Don’t rely on mass transit in Florida. If you’re coming from a large city like New York, Chicago or San Francisco, you may be accustomed to commuting via train or bus. That won’t be the case in Florida, which has sprawling metropolitan areas and relatively limited public transportation options. “Don’t assume that commuting is easy,” Cagnetta warned. “There is still a need to build out good public transportation.”

How to move your company to another state

Michael Merhar, an attorney and owner of Florida-based Merhar Law, advises businesses relocating to Florida to carefully research the state’s legal and tax requirements.

“Business owners should consult with professionals familiar with Florida law, including attorneys and tax advisors, to make sure the move is legally sound and financially optimized,” Merhar said.

Consider the following best practices if you’ve decided to relocate your business, whether to Florida or another state.

1. Inform your customers of your move. If you have a brick-and-mortar business, you’ll likely lose the bulk of your local customers when you relocate to another state. Thank your customers for their business and direct them to your website to help recover lost sales. Let them know where you’re moving so they can visit your business if they’re ever in the area. If you have an online store, notify your customers and update the address on their invoices.
2. Update your licenses and permits. Sole proprietorships and partnerships must cancel their local business licenses and permits and apply for new ones in their new location. Depending on the type of business, additional steps may be required in your new state. In Florida, for instance, appropriate licensing is required for certain professions and trades. “If the business involves regulated professions or trades, appropriate licensing through the Florida Department of Business and Professional Regulation is required,” Merhar noted. [Read Related Article: What Sole Proprietors Need to Know About Business Licenses]
3. Notify the IRS of your new address. You’ll need to inform the IRS so your federal tax ID (EIN) reflects your new business address. This ensures tax documents are processed correctly and helps you avoid potential filing issues.
4. Register with your new state. Corporations must register in the new state by dissolving the corporation in the original state and restarting it in the new state, or by filing a foreign qualification in the new state. Merhar outlined specifics for new Florida businesses: “First, it is essential to register with the Florida Division of Corporations and obtain a Certificate of Authorization or file for a foreign entity qualification if the company is remaining incorporated in another state,” Merhar advised. If you dissolve the existing corporation, pay any outstanding debts and taxes.
5. Meet your new state’s tax requirements. If you’re relocating to a new state, be sure to register for applicable state and local taxes. In Florida, that includes sales tax, unemployment tax and compliance with state-specific employment laws. “Business owners will need to register with the Florida Department of Revenue for sales tax and other state tax obligations,” Merhar explained. “Employers should also register for unemployment tax and ensure compliance with Florida’s labor and employment laws, which may differ from those in their previous state.”
6. Conduct market research on your new location. If you sell locally, conduct effective market research to gather insights that will help you tailor your marketing plan and relaunch successfully in your new area.
7. Pack and transport your equipment and inventory. If you have a brick-and-mortar business with inventory, consider hiring a professional moving company to assist you. You may also be able to negotiate a package deal to move your personal furniture and belongings.
8. Set up your new location. You’ll need to settle on a new personal residence and a business location. You should also select the best business phone system available in your area that supports your operations and customer communications.
9. Update your business insurance. Relocating your business may require updating or replacing your insurance policies to meet the requirements of your new state. Coverage limits, required policies and provider availability can vary by location. For example, you may need new general liability, commercial property or workers’ compensation policies that reflect state-specific laws and risks. Consult with the best business insurance providers in your new state to ensure your business is fully protected from day one.
10. Change your address. Forward your mail and notify the post office of your new address. Be sure to update your location on your website, marketing materials, Google Business profile, Yelp and social media channels.
11. Register your vehicles. Your personal and business vehicles, including company cars,  will need new titles and registrations in your new state.
12. Market your business in its new location. Implement your updated marketing plan and start making sales to establish your presence. Stay alert for ways to improve your local marketing strategy by researching your target market and ensuring your business appears in local directories.