Why Are Businesses Moving to Florida and Will They Stay?
Businesses are moving to Florida in droves and some of the country’s brightest minds and most successful people are following suit. Florida has become a mecca for entrepreneurs, and those who want to escape the clutches of the lockdown which still may have no real end in sight as of yet.
Many corporations and people are coming from the Northeast and are lured in by loose COVID-19 rules, lower taxes, and the weather and lifestyle that have always been a draw for people.
And that’s the thing, this is not new. More people have been moving down to Florida over the past few decades, making it the third-largest state by population in recent years. The recent pandemic has only made the draw that much more powerful for people in Northeastern states.
So, why are businesses moving to Florida? We think there are 4 distinct reasons for the move.
1 – The Tax Structure is Business and People Friendly
There are no state income taxes in Florida… which means that regular people don’t have to pay more taxes to that state from their paycheck every month. That has been one of the main perks for retiring Northeastern migrants who move to Florida to save on their pensions.
But the state and sales tax for businesses is also comparatively low compared to many other business-friendly states with large metropolitan cities. In fact, in almost every category Florida taxes were much lower than the average of the US (except in sales tax).
The move to Florida from Northeastern states is nothing new at all. Florida is home to 500,000 snowbirds who travel to the sunshine state to spend the colder winter months in the warmer climate. Could it be that more of these snowbirds may elect to stay in Florida to enjoy these tax benefits?
Snowbirds aren’t the only ones moving to Florida. According to the Palm Beach County Business Development Board, as of May 2021, nearly 1,000 people are moving to Florida every day.
2 – Loose COVID-19 Restrictions
Florida has been one of the few states that have open up faster and approached pandemic restrictions with some semblance of less regard. The state has been open since July 2020 which stands in stark contrast to states like California that have only recently opened.
In states with strict COVID-19 guidelines, many businesses are struggling to remain profitable. And the pandemic may have shed some light on how fragile some small businesses really are.
But in many cases, businesses are moving to states like Texas and Florida because customers have returned to, mostly, normal life.
Additionally, Florida ranked in the top 10 states with the fewest restrictions at number 8, while Texas has many more restrictions coming in at number 33 on the list of states with the fewest restrictions.
3 – More Businesses Creates a Snowball Effect
More businesses moving to Florida will facilitate the movement of even more businesses moving to Florida. More begets more, growth begets growth.
David Coddington, Senior Vice President of The Greater Fort Lauderdale Alliance says that interest in moving to Florida has increased more than 50%. His organization helps businesses transition to Florida.
4 – More People Are Moving For the Lifestyle
Florida has always attracted people. The weather, the lifestyle, the fun in the sun attitude. And now that more people are given the opportunity to work remotely, they are moving to Florida.
You don’t have to be in Florida to work in New York, and hey, many New Yorkers have family in Florida already, making the move to Florida not as drastic or as unfamiliar as a move to any other state.
So will the move be permanent?
The number of businesses opening up online high risk merchant accounts is increasing? The number of people moving to Florida and buying a home has increased. These businesses are making Florida a temporary home, these people aren’t renting.
This move is permanent.
And many will stay in Florida at least for the foreseeable future. The state will benefit from the decisions made by others states moving forward.
My interest in the financial world started to blossom in High School. However, my parents tell me I use to watch financial programs before the age of 5. So, I guess I was born with the Financial bug. In high school I was accepted into their Finance Academy, which I attended for 4 years. In addition to graduating high school, I accumulated a substantial amount of financial knowledge few people experience at such a young age. During which time, I won the State of Florida Stock Market Contest and I also finished in the top 100 in the CNBC stock market contest which had over 1 million participants throughout the country (including some of Wall Street’s elites) with a take home prize of $1 million. These achievements allowed me to be invited to many shows and events with top people in their fields of business from around the world.