Florida: The New “Wild West”

TODD GREEN – Florida’s residential population and business’ incorporation is growing. It’s comparable to the old wild west- growth as far as the eye can see and the freedom to make dreams into reality. It does not have the same types of ceilings that stifle growth like the presence of prominent and dominating business people. Florida is a place where the opportunities are endless because there are still many industries that have not established themselves like they have in older, better-known states like New York and California.

Over the past twenty years, Florida, in particular central and south Florida, has become one of the fastest growing populations in the United States of America. Forbes ranked Florida the ninth fastest growing state and CBS ranked Florida the seventh fastest growing state. The CBS news article also points out that Florida is expected to become the third most populous state in the country. If this happens, Florida would have a larger population than New York. Not only has the population been on the rise, but corporations and economic growth have followed as a result- Forbes says that Florida has four cities that rank in the top twenty fastest growing cities(Orlando #9, Cape Coral #14, Palm Bay #15, North Point #18). This growth can be inferred from the current laws that govern Florida’s residents and corporations. Florida laws favor growth and a higher chance of success than some of the more “powerful” states like California and New York.

The main reasons for Florida’s higher potential for growth are the tax incentives. Florida is one of seven states that do not have personal income tax. Florida also has one of the lower corporate tax rates in the US. The corporate tax rate is 5.5% and is also a fixed number. Other states have a rate that increases after reaching certain brackets. This flat tax rate makes it easier for businesses to calculate decisions by not needing to do more arduous math when dealing with different levels of income streams. The case law on corporations in Florida is also a strong indicator of the protection’s a corporation receives by incorporating in Florida. For example, Burger King v. Rudzewicz illustrated that Florida contracts seem to hold weight even when a Florida party conducts business in another state. In Burger King, the court held that sophisticated parties that conduct the primary business within a different state are held to the forum and choice of law clauses that are stated in the executed contracts and agreements.

Florida’s “tech boom” has also contributed to its increase in population and strengthening economy. The tech boom has brought a large amount of innovation and investors from all over the world. It is clear from these articles that South American countries with unstable economies like Venezuela and Argentina see South Florida, particularly Miami, as a smart investment to create revenue but also a way to protect their money from an unstable government. The international investors have started to leave a positive mark on South Florida. It is clear that Miami is going to be one of the most international cities in the county if it is not already.

The real estate market explosion has also given these international investors an incentive to settle in South Florida. Zilbert International Realty, a premier luxury real estate firm in south beach, shows on their website that there are over thirty preconstruction residential buildings in the greater Miami area. These buildings are high-end luxury buildings and they will attract healthy investors from all over the world. Most of the prospective international buyers are from countries such as Argentina, Canada, China, Russia, and Venezuela. Internationals and Americans alike see Miami as a “dream city”- a place where one can protect their assets and create a strong future for themselves and their families.

Some of the largest corporations and companies in the country as well as around the world – ADT Security Services, Fidelity, Carnival, Norwegian Cruise Line, Royal Caribbean, Checkers, Hard Rock Café, Hooters, Home Depot, Office Depot, Ryder, Publix, and PGA Tour – are all incorporated in Florida. These corporations not only impact Florida, but affect areas around the world, like Latin America and Asia by making Miami an international center for business by connecting one country to one another.

Florida has been growing at an exponential rate. This fairly uncharted territory, in terms of potential business and corporation growth, leads to great chances of opportunity and progress. It is important for all aspiring entrepreneurs to make sure that if they chose Florida as the state in which they incorporate that they are following up with all the necessary laws and guidelines. Taking advantage of the tax and incorporation laws as well as the swell of international investors and understanding the future trends of Florida will benefit and allow an individual and corporations to take educated risks to increase their growth for years to come.