Florida

3 Reasons to Start a Small Business in Palm Beach, Florida

palm-beach-florida

Not all states are created equal, and in addition to plentiful sunshine, Florida offers quite a few tax advantages for businesses. As of 2016, the incentives fall into three areas: corporate income, insurance premiums, and sales and use. Not only that, starting a small business is relatively easy.

Small Business Regulations Are Minimal

Founding a small business in an area such as Palm Beach, Florida is a breeze, particularly since the county website is so friendly and provides a step-by-step guide of the process. Basically, you need to name your business and check with county officials about zoning, any licenses and any state sales tax issues. Working out of your home is most likely fine, but it is always good to confirm. That’s it! The process for other areas of the state, besides Palm Beach, is relatively similar.

There Is No State Income Tax Unless You Are a C-Corporation

The only Florida businesses that pay taxes are C-corporations, but even then, the taxes are low compared to what C-corporations have to pay in other parts of the country. This means that sole proprietorships and partnerships get huge savings. As for limited liability corporations, they also do not have to pay state tax unless they are one of the infrequent LLCs that has opted for incorporation.

Many Florida small businesses take the form of an S-corporation; it offers the dual benefits of no business tax and quite a few similar legal protections available to C-corporations. However, S-corporation owners do need to pay federal taxes on their S-corporation income.

Tax Incentives Are Varied

Florida provides many tax incentives, such as a research and development tax credit, and a sales tax exemption for industrial machinery and equipment purchases for eligible manufacturing businesses. No matter what type of business you want to go into, there may be a Florida tax incentive for you. Enlist the help of an accountant to learn more, or click on applicable links from the Florida Department of Revenue.

How Herman & Company CPA’s, P.C. Can Help

Herman & Company CPA’s, P.C. offers many solutions for businesses to maximize profit in Palm Beach, Florida. Whether you need assistance with accounting and bookkeeping needs and/or tax planning, Herman & Company CPA’s, P.C. will do a free consultation. Get in touch to see how we can be of service!

 

Establishing Residency in Boynton Beach, Florida For Tax Purposes

Boynton Beach, Florida

Moving to Boynton Beach Offers Premium Tax Benefits

Imagine having year-round access to miles of sandy beaches, championship golf courses and waterfront parks, not to mention great weather. Sound too good to be true? Not if you live in Boynton Beach, Florida. Boynton Beach is a mid-size community located in Palm Beach County. Best of all, residents receive all the great tax benefits that Florida has to offer. This helps to make setting up a residency near the beach very affordable.

Florida Tax Benefits

Income Tax

Florida is one of the few states in America that does not have a state income tax. While you will still have to pay federal income tax, you won’t pay state income tax on your Florida wages, pension or social security benefits.

Inheritance Tax

Another cost savings benefit Floridians receive is no inheritance tax. The Florida State Constitution bans this type of separate taxation, so you will never have to worry about state death tax whether you are planning to inherit an estate someday or leave assets behind for your loved ones.

Homestead Exemptions

Florida has what is referred to as a “homestead exemption.” This exempts homeowners from paying property taxes on the first $50,000 value of their property. You must apply for this exemption in order to obtain this special benefit.

Establishing Residency

According to the Pension Source Tax Act of 1996, it is illegal for another state to try to levy their taxes on you if you live in Florida but receive a pension from another state. However, it is crucial to establish an official residency in Florida. If you do not set up your residency properly, you risk having another state trying to levy their taxes on you. This is especially true if you have a dual residency with another state.

Here are several things you can do to establish residency and ensure you get all the tax benefits you deserve.

  • Obtain a Florida driver’s license and vehicle registration.

  • Register to vote in Palm Beach County.

  • Apply for the Homestead Exemption (if you own property in Florida).

  • Establish a bank account in Florida and change your direct deposits to this account.

  • File federal income tax using a Florida address.

  • Make sure you are physically present in the state for at least 183 days.

  • File a domicile with the Palm Beach County Clerk of Courts and submit a copy to your previous county tax office.

Herman & Company CPA’s, P.C. can help answer any questions you have about establishing residency in Boynton Beach, Florida. Our team of financial professionals can assist you with everything from tax planning and preparation to estate and retirement planning. We not only will help you save money by minimizing your tax burden, but we will provide professional advice to help you plan for your future.

 

Misplaced decimal means big property tax bills

By Bankrate

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

taxes-blog-Misplaced-decimal-means-big-property-tax-bill-shutterstock-mst

Remember that tax tip about double checking your math before submitting your return? It applies to tax agencies, too.

A misplaced decimal by Jupiter, Florida, tax officials prompted a panic by some homeowners who recently received larger-than-expected property tax bills.

One dot means 10 times tax trouble

The annual tax bills were 10 times greater than they should have been. Instead of a 0.233 millage rate used to calculate a portion of the local property taxes, the town used 2.33.

Fortunately for the seaside community’s property owners, Jupiter officials realized their error — after hearing from angry residents — and have corrected it.

“When I was entering the Town’s Debt portion of the millage rate for the preliminary tax notice I inadvertently typed 2.330 instead of .2330,” Jupiter Finance Director Mike Villella told The Palm Beach Post.

And there’s an even brighter silver lining. Jupiter officials are considering a slight decrease to the overall property tax rate.

I suspect the upcoming public hearing on the proposed property tax rate will be quite well attended.

Review your tax bills

All of us property owners can learn from the Jupiter math error. Everyone makes mistakes, so we need to pay close attention to those property tax assessments we receive, as well as our eventual actual tax bill.

When you think your property tax bill is too big, you have options to correct it. Start with these 3 steps to lower your property taxes:

1. Review your property assessment amount.
2. Apply for homestead and any other exemption amounts for which you qualify.
3. Freeze your assessment if you are part of an eligible property group, such as a member of the military or a senior citizen.

You can get an idea of what type of exemptions your tax officials offer by checking your state’s property tax section at Bankrate’s state tax pages.

Appeal your assessment

If after receiving all the exemptions you deserve you still find your property tax bill is larger than you believe it should be, you can appeal it to the taxing officials.

It takes some work as homeowners who’ve gone through the appeals process can attest, but when you get a correct, lower bill, it’s worth it.

Do you regularly check your real estate tax assessments and bills, or do you just pay what the tax collector says you owe? Have you ever appealed a property tax bill?

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.