Many small businesses are choosing to leave New York and migrate to Florida for various reasons. The days of businesses paying costly rent to stay in New York and other high-cost living areas seem to be coming to an end with the rise of remote work. Small businesses aren’t the only ones moving to Florida, as many large corporations are also making the switch, such as Goldman Sachs. The trend of moving a company to another state only accelerated during the pandemic, with many businesses adopting remote work and hybrid work models.
Why Businesses are Leaving New York
Making the switch to Florida is an appealing option for many companies due to the tax savings. State taxes in Florida are much lower than in New York and other states. There are also concerns about the government increasing the corporate tax rate, which further accelerates the number of businesses leaving New York. High-income individuals even benefit by living in Florida due to income tax deductions limited to $10,000 on federal income tax returns.
Another reason why many businesses are moving to Florida is that the state has far fewer restrictions on residents and companies compared to New York. These fewer restrictions make Florida an attractive option for business owners, as they don’t have to constantly worry about being put in another lockdown in response to the pandemic. The shift to remote work and hybrid work remodels gives companies the flexibility to let employees work at home.
Additional Reasons Why Businesses are Moving to Florida
The cost of living in New York and other locations creates significant challenges for business owners. Finding an affordable living arrangement is nearly impossible for many people. On the other hand, houses throughout Florida are a much more affordable option. Operating your company in a lower-cost living area makes it much easier to manage your business operations.
New York also has a reputation for being unfriendly to businesses due to different regulations. Staying in compliance with these rules only gets more difficult each year. However, Florida is a state with a much more business-friendly reputation, whether it’s fewer environmental regulations, minimal health requirements, or a better tax structure. The booming Florida economy also makes it much more attractive for business owners.
Florida is Open for Business
Businesses of all sizes are welcome to move to Florida, as the state recently created its “Open for Business” campaign. Florida is continually rated as one of the top states for business due to the lesser number of rules and friendly tax structure. Companies don’t even have to worry about paying a state income tax. The Florida economy is even the 17th largest in the entire world, and the quality of life is excellent for anyone that enjoys sunny weather.
Investing in infrastructure is another top concern in Florida, as it has led the nation to more than $10 billion in infrastructure funding for the last six years. Accessibility is another major selling point for anyone considering the move. It is the gateway for emerging markets across the Americas and access to international trade through the Panama Canal. Florida is also consistently ranked in the top five in the nation with its education system that helps prepare today’s youth for the workforce.
Quality of Life in Florida
Dealing with the brutal winters in the Northeast isn’t a fun experience. Constantly dealing with ice and snow can quickly get tiring for anyone living in New York. On the other hand, Florida is the place for anyone who enjoys warm temperatures throughout the year. The pristine beaches on the coast are also a major attraction. Remote work and hybrid work models provide employees with the flexibility to spend time in the beautiful outdoors while still being productive.
The lower cost of living makes Florida one of the top destinations for business owners. You can quickly recruit the best talent available for remote work or invest in hybrid work models to better meet the needs of your business. Either way, you have the flexibility of operating your company in a business-friendly environment without all of the extra hassles that are associated with other states.
Closing Thoughts
Moving a small business to another state is a big decision that is never taken lightly. Learning about the different benefits of living in Florida is essential if you are undecided. The quality of life, low cost of living, lower tax bills, and the thriving Florida economy are just a few of the many reasons the sunshine state is such a favorite destination for many businesses in New York. Ultimately, the future looks bright throughout the state due to its business-friendly environment.
