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 after the pandemic.

The pandemic prompted many business owners to rethink their locations. Many decided to leave behind dense, cold and expensive urban areas in favor of a more laid-back lifestyle in sunny Florida. After being cooped up inside small apartments during social distancing periods, people understandably found the idea of single-family homes with year-round outdoor access extremely attractive. With the pandemic in the past, Florida is still a popular destination for its desirable weather and atmosphere. 

2. Businesses relocate to Florida to follow their customers.

Florida has a large population and a correspondingly large economy. In fact, if Florida were a country, it would have the 14th largest economy in the world. Numerous customer segments are well-represented in the state. For example, Florida cities, particularly Miami, draw young people because of the beaches, climate and vibrant entertainment scene. Companies all over the U.S. track the movement of young people seeking more affordable living situations, and plenty of them are moving to Florida. 

3. Florida is attractive for small businesses seeking growth. 

Florida offers various business incubators and accelerators to attract and encourage business innovation, particularly in the tech sector. Some examples include the 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 the highest 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 much 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 lets employers source a youthful talent pool.

As more young people flock to Miami and other Florida cities, they form a talent pool of educated people. 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 businesses. [Read related article: Managing Tips for a Multigenerational Workforce: From Baby Boomers to Gen Z]

6. Florida appeals to business owners seeking a good quality of life.

Florida’s climate and beaches are big draws, especially for people living in the snowy mountains of the Northeast and Midwest. Cities like Miami are increasingly cosmopolitan, with world-class restaurants, cultural attractions, and nightlife, creating a vibrancy that is missing in other cities.

Residents embrace creativity through art, music, museums and festivals. The area is also an international melting pot and has a consistent influx of tourism that helps create an evolving cultural identity.

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 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 is lower than many states.

8. Florida has an educated workforce.

With a robust, affordable state university system and renowned private universities like the University of Miami, Florida provides companies with a well-educated and skilled workforce. Additionally, Florida is a leader in the U.S. in STEM graduates and provides numerous opportunities for businesses to work 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 physical proximity, Florida boasts the Miami International Airport, which has dozens of international flights daily. With an extensive Hispanic population, plenty of  Spanish-speaking and Portuguese-speaking people are available to hire.

10. Florida is a business-friendly state. 

In Florida, businesses typically have less red tape to deal with and quicker approvals for permits and other paperwork. State permitting fees are 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 boasts 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 keep it well-connected, the state government is committed to investing in building and maintaining 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 in good repair and bustling. It has over 120,000 miles of roads, over 2,700 miles of freight rail tracks and 14 deep-water ports.

12. Florida is a technology hub.

Florida is the No. 1 state in the country for new high-tech business establishments, partly because of the presence of NASA at Cape Canaveral. Florida ranks second in the country for aerospace manufacturing and boasts 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 Florida, be sure to do the following: 

• Do be aware of Florida’s seasonality. Florida’s tourist season is October through May, when there’s mild, dry weather and it’s cold elsewhere. There is a massive influx of tourists and “snowbirds” — people who spend the winter in Florida. There is much more traffic, crowds, and money spent during the high season than during the off-season, from June through September.
• Do play some golf in Florida. Florida is home to many golf courses, where much business is transacted. 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 what kind of product or service you provide, consider how you can market it to the throngs of visitors to Florida.

Don’t do the following in Florida:

• Don’t dismiss Florida’s hurricanes. Hurricanes are common from summer through November and can cause severe damage if they hit directly. Get hurricane shutters or board up your windows, especially near the coast, and always follow evacuation orders.
• Don’t only consider Florida’s 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. However, each of these cities has numerous surrounding communities where you may be able to find a calmer, more suburban and affordable lifestyle.
• 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 using trains and other mass transit to commute to work and get around. That won’t be the case in Florida, which has sprawling metropolitan areas and relatively few trains and buses.

How to move your company to another state

If you’ve decided to relocate to Florida or another state, follow these best practices: 

1. Inform your customers of your move. If you have a brick-and-mortar business, you’ll likely lose the bulk of your customers when you relocate to another state. Thank your customers for their business, and direct them to your website to salvage lost sales. Let them know where you will be moving so they can visit your business when they’re in the area. E-commerce and other virtual businesses should notify customers and change the address on their invoices.
2. Notify the proper entities. Sole proprietorships and partnerships must cancel their local business licenses and permits and apply for new ones in their new location. You will also have to inform the IRS, so your federal tax ID number has the correct business address on file. 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. If you dissolve the existing corporation, pay any outstanding debts and taxes.
3. Conduct market research on your new location. If you sell locally, researching your new location will give you the insight you need to modify your marketing plan to get up and running quickly.
4. Apply for new business licenses and permits as needed. Be sure to research what registrations are required in your new state because there may be different rules. [Read Related Article: What Sole Proprietors Need to Know About Business Licenses]
5. Pack up and ship your things. If you have a brick-and-mortar business with inventory, consider hiring a professional mover to help. You may also be able to negotiate a package deal to move your personal furniture and belongings.
6. Set up your new location. You’ll need to settle on a new personal residence and a business location. You’ll also have to set up a new business phone system and choose business insurance for your location and industry. [See our picks for the best business phone systems and our business insurance guide.]
7. Change your address. Forward your mail and change your address with the post office. Be sure to update your address on your marketing materials and business website. You’ll also need to change your business address on Google, Yelp, and your social media profiles.
8. Register your vehicles. Your personal and business vehicles, including company cars,  will need new titles and registrations in your new state.
9. Market your business in its new location. Implement your new marketing plan, and start making sales to establish your presence in your new location. Stay alert for ways to improve your local marketing strategy in your new location by researching your target market and ensuring you appear in local directories.