- Florida has no minimum capital requirement. Some states require that a corporation be capitalized with at least $1,000.
- For-profit Florida corporations require only one director. The same person can be a Director, the President, Treasurer and Secretary. Some states require more than one Director and require that all of the officers are different people.
- Florida has a quality, impartial Court system. Florida courts are well-versed in corporate issues. Nevertheless, if the business will be done primarily in Florida, it makes sense not to go to Court with a “foreign” corporation from a State such as Delaware.
- Incorporating in a foreign state and doing business in Florida requires the corporation to formally qualify to do business as a “Foreign Corporation” in Florida. This additional annual filing costs money (in fact, the same amount as incorporating in Florida in the first place!). and exposes the corporation to a second set of large late penalties if you file your annual report late (one more thing to keep track of). Because the corporation could be in good standing in another state, this crucial qualification may go unmonitored. Unless you can be sure a filing date won’t be missed because of having to keep track of more than one state’s requirements, it simply makes more sense to incorporate in the State that you will be doing business. Additionally, if you incorporate out of State you will be paying an out-of-state registered agent to serve as such for each year your company operates—another duplicate cost.
- Florida is becoming more friendly to corporations. The annual fees for forming and maintaining a Florida corporation are already low compared to many other states and annual fees were cut by 25% recently at the request of the Florida Secretary of State.
- The Secretary of State of Florida does not keep records of who owns the stock of a Florida corporation.
- A corporation may be formed to undertake all lawful business activities. This permits businesses formed in Florida to engage in any type or types of business (other than licensed professions, which are usually permitted to form professional associations).
