July 2022 - Setup-usa-Company.com

July 28, 2022/in blog/by Rachida

Located in the southeastern United States, the state of Florida attracts more and more expatriates each year. Whether they are investors, professionals or young students, all are seduced by the “Sunshine State”.

The mild climate, white sandy beaches, developed infrastructure, attractive real estate market and of course, a lenient tax system make it the ideal destination on the East Coast of the USA. Florida is the fourth most populous state in the Americas and also one of the most prosperous.

Florida seduces on all levels, here are the reasons why.

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  1. Immigrants in Florida
  2. The real estate market in Florida
  3. Taxation as mild as the weather
  4. Schools in Florida
  5. The cultural offer in Florida
  6. Temperatures in Florida
  7. Nature in Florida
  8. The advantages of choosing Florida to create your business
  9. Choose the LLC in Florida
    1. Create an LLC in Florida
    2. What is an LLC?
    3. What image for an LLC in Florida?
    4. The advantages of an LLC in Florida
  10. Which tax treaties between France and the United States?
  11. Taxes in the USA
    1. What about the wealth tax in the US?
    2. Federal Tax
    3. Income tax
    4. The state tax
    5. Other taxes: local taxes

Immigrants in Florida

The state of Florida is as we have seen the fourth most populated state in the United States. Many immigrants from all over the world come here to try to conquer America. But not only, many American retirees also come to spend their old age under the Florida sun.

The real estate market in Florida

The real estate market is very attractive in this part of the country. Very good opportunities exist which attracts investors from all over the world. The prices of real estate in Florida are often lower than those in Europe, hence the interest for real estate in Florida. If we add sunshine all year round (or almost) then we do not hesitate and we settle in Florida.

Taxation as mild as the weather

The tax system in Florida is very lenient and offers many advantages to company founders and also facilitates the obtaining of visas. As a matter of fact, any investor who would invest USD 500,000 in a company could be entitled to a green card if the company presents positive financial results and creates and maintains jobs.

Unlike California, where the corporate income tax is 8.8 percent, in Florida it is only 4.458 percent. In addition, the state constitution states in black and white that the state will not levy income taxes on individuals.

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Schools in Florida

In order to revitalize the state, Florida has tried to attract as many young families as possible and has therefore relied heavily on the educational offer. The local authorities have therefore relied on the establishment of very good schools because according to them, good schools attract good students who encourage the schools to seek excellence.

In Florida, there are many students attracted by the academic potential, with universities like the University of Central Florida for example.

The cultural offer in Florida

Florida offers a multicultural environment that is suitable for everyone.
There is an ever-increasing array of cultural entertainment available, making the region an even more attractive place to stay. Events, concerts, museums, national parks, etc. are just some of the activities that make you enjoy Florida.

Florida is also known to have many attractions such as the famous Walt Disney park for example. There is something for everyone.

If you choose to live in Florida, be sure not to miss anything in terms of entertainment and this no matter your budget.

Temperatures in Florida

The climate in Florida is very mild and can be compared to the south of France. It is a subtropical climate, with hot and humid summers and dry but mild winters.

Nature in Florida

Florida, unlike many other states, is a “green” state. Who doesn’t know the Everglades? The crocodiles?

Florida is a state full of wild animals. It is quite common to see a couple of peacocks crossing a road and blocking the traffic, it is also possible to see alligators in the Everglades, racoons, etc.

If you are still hesitating to settle in Florida, this list should help you to see more clearly.
The Merritt firm, based in Orlando, will assist you in your company creation project and can also be your Registered Agent.
Contact us for more information: support@merritt.group

https://www.setup-usa-company.com/wp-content/uploads/2022/07/pourquoi-vivre-en-floride.png400950Rachidahttps://www.setup-usa-company.com/wp-content/uploads/2019/12/USA-300x84.pngRachida2022-07-28 13:00:092022-07-06 06:04:36Life in Florida: a relocation magnetJuly 16, 2022/in Uncategorized/by Rachida

Did you know that the state of Florida has been ranked by Chief Executive Magazine as the number 2 best state for business in 2021?

Florida is also known for having the fourth largest economy in the country. There, the industries with the highest GDP are: tourism, construction, agriculture, science and health.

The advantages of choosing Florida to create your business

Due to its pro-business status, Florida, also known as the “Sunshine State”, is considered a prime destination for doing business in the United States.

Many young entrepreneurs move there to start a business.

WalletHub ranks Florida in fourth place just after Texas, Georgia and California. The ranking is done among the 50 states and is based on three (3) measures namely business environment, business costs and access to resources.

Choose the LLC in Florida

When one thinks of creating a company in the United States, one immediately thinks of the state of Florida. But why? As mentioned above, Florida is a very popular state for its taxation. Taxes are low and there are solutions to avoid being taxed in the USA. USA-UAE SOLUTION

Let’s see what are the advantages of creating a company in Florida.

  • The taxation on LLC is null in Florida;
  • There is no income tax;
  • The register of directors is not public;
  • There is no shortage of cities to choose from to locate your business. You can choose between Miami, Orlando, Tampa, Jacksonville, etc.

Create an LLC in Florida

The first question that entrepreneurs automatically ask themselves concerns the legal status of the company they are going to create. Most often, when one chooses Florida, it is the LLC status that is chosen. Indeed, it is much easier to start a business in Florida under this legal form.

What is an LLC?

LLC stands for Limited Liability Company and is also known as a Limited Liability Company. This type of entity is the solution for start-ups, small and medium-sized businesses in the United States.

In other words, you get the benefits and protection afforded to large Florida corporations but with much more flexible rules.

The LLC is much more protective than other types of corporations.

What image for an LLC in Florida?

Although taxation is non-existent in other states, Florida remains at the top of the list for company formation in the U.S., thanks to its positive image in the business world.

As a reminder, the state of Florida has a zero income tax rate and a sales tax rate of only 6 percent.

Florida, unlike other states, enjoys a prestigious brand image. Although there is no income tax and low taxation, Florida does not appear on any of the OECD lists.

You also have the choice to run your business from within the US or outside the US, the choice is yours.

This state is also appreciated for all activities related to trade. There are many e-commerce companies, dropshipping, Amazon FBA, etc.

The advantages of an LLC in Florida

The reason why company founders in the USA choose this state is because it offers many advantages to LLCs. Among these advantages are:

  • With LLC status, liability is limited to the business and allows beneficiaries to avoid liability and/or personal assets;
  • The capital of the LLC does not have to be deposited or owned;
  • The number of members in an LLC in Florida is not limited;
  • Legal requirements are flexible with simplified accounting and quick annual reporting;
  • The cost of the annual report is only $138.75 per year;
  • If you have other sources of income outside the United States, then no income tax will be levied by the State of Florida.

Suggested reading:The advantages of starting a business in Florida

The State of Florida is therefore the ideal state to conquer the United States with the creation of a limited liability company also called LLC. Many advantages are offered to the entrepreneurs in particular a light taxation or even null.

Our cabinet in Orlando, Florida takes care of all the administrative procedures for the company formation in the USA and the opening of bank accounts in reputable institutions in the United States.

For more information, please contact us at support@merritt.group

https://www.setup-usa-company.com/wp-content/uploads/2022/07/vivre-en-floride.png400950Rachidahttps://www.setup-usa-company.com/wp-content/uploads/2019/12/USA-300x84.pngRachida2022-07-16 13:36:572022-07-06 05:47:18Why settle and live in Florida? July 4, 2022/in blog/by Rachida

Have you heard about “the American dream”? Well, many of you have taken the plunge and conquered the American market. The United States is one of the favorite destinations when you decide to boost your career, create your company, etc.

If you decide to settle in the Sunshine State (Florida), you will need to familiarize yourself with the rules and laws of the country but also and especially with the tax system.

Although Florida offers a much more flexible tax system than France, it is still very specific unlike the 49 other states in the United States.

In the United States, the tax system is a bit complex. People have to pay different taxes at the federal and state level. But not only that, there are also taxes at the city and county level… taxes in the United States are endless.

Translated with www.DeepL.com/Translator (free version)

Which tax treaties between France and the United States?

here are two (2) tax treaties between France and the United States. The first one dates from 1978 and the second one from 1994.

A double taxation treaty (DTT) is a treaty concluded between two (2) States, which aims to avoid double taxation of persons and companies. An important point is the determination of the tax residence, i.e. the place of taxation. The goal is that the person or company is not taxed once in each country for the same income. There are of course conditions, which can be found in article 4 of the Franco-American convention of 1994 to determine the country of your tax residence (in hierarchical order):

  • The country where you have your permanent home
  • The country where you have your center of vital interests*
  • The country of your habitual residence
  • The country of your nationality

To be considered a U.S. tax resident, you must meet at least one of the following criteria:

  • Be a U.S. Citizen;
  • Be a Green Card holder;
  • Be present in the United States for at least 183 days;
  • Be present in the United States for 183 days according to the following calculation
  • Number of days spent in year N: + 1/3 of the number of days spent in year N-1 + 1/6 of the number of days spent in year N-2.

A tax treaty therefore avoids double taxation and makes the transfer of assets easier.

Taxes in the United States are administered by the Internal Revenue Service, better known as the IRS. State taxes are administered at the state level.

Taxes in the USA

What about the wealth tax in the US?

Good news, there is no wealth tax. The United States, unlike France, avoids any mechanism that could scare away the wealthiest.

Federal Tax

The federal tax in the United States is also called the national tax. As in France, the scale varies according to family situation and income. It is a progressive tax imposed on income that varies from 10 to 35%.

There are possibilities to reduce this tax through the deductions for professional expenses. If you are the manager of a company that makes less than $50,000 in income, then the rate of this tax will be 15%. The advantage is that this tax is based on the possibility of deducting professional expenses (within a certain limit).

Income tax

Income tax is deducted at source, i.e. the employer collects the tax and remits it to the State. Before the tax is deducted, deductions and allowances are applied.

What is the tax rate in the United States?

  • For individuals: Rates vary from 10% if you earn less than $8,925 to 35% if you earn more than $398,350 to 39.6% for incomes over $400,000. This can also change depending on your family situation.
  • For corporations: The rates vary from 15% if your taxable income is less than or equal to $50,000 to 38% if your corporation has more than $15 million in taxable income.

The state tax

  • Individuals: The state tax is more commonly known as the “state tax”. In the State of Florida, it is mentioned in its constitution that there was no personal income tax.In reality, it did exist but was abolished in 2007. At that time it was called the “intangible personal property” tax.
  • Corporations: Corporations in the State of Florida are subject to a 5.5% tax on their net income.

Other taxes: local taxes

The calculation of these taxes is based on declared gross income. Both residents and non-residents are affected by these taxes. In brief, some of these taxes:

  • The Property Tax: in French we speak of the property tax. The basis of this tax is the real estate of individuals and companies.

This tax amounts to approximately two percent of the market price of the property in question. Note that this tax is tax deductible.

In Florida, there is also the Homestead Exemption, which allows a Florida homeowner to benefit from a tax abatement of up to $50,000 on the property tax of their principal residence.

  • There is also the “Sales and Use Tax” which is similar to the local VAT that is added to the purchase price of any type of consumer goods. This tax is seven percent in Miami County…a far cry from the 20 percent applied in France.

In contrast to VAT, companies do not deduct Sales Tax. Companies pay this tax to their supplier if they are the final users of the goods. But, if the company collects Sales Tax, it can obtain a certificate that will allow it not to pay tax on goods purchased for resale. Also, it should be noted that there is no sales tax on services.

  • Taxes on rental income: According to Article 6-1 of the Convention, rental income from real estate located in the United States is taxable. This income is exempt from taxation in France, but if you are a French tax resident, France reserves the right to take this income into account when calculating its tax rate.

Tax residency is not a subject to be taken lightly, especially in countries such as the United States. An omission or attempt at fraud could cost you dearly. We advise you to get in touch with a tax lawyer in your country of origin to validate all your questions regarding tax residence.

For all matters related to the creation of a company, our local team can welcome you and accompany you. For more information: support@merritt.group.

https://www.setup-usa-company.com/wp-content/uploads/2022/07/Les-impots-dans-lEtat-de-Floride-1.png8001900Rachidahttps://www.setup-usa-company.com/wp-content/uploads/2019/12/USA-300x84.pngRachida2022-07-04 11:39:552022-07-04 12:13:35Taxes in Florida

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