Florida

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

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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!

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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.

Rich tend to stay put despite high taxes

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Opponents of higher taxes on the wealthy often invoke the fable about the disastrous killing of the goose that laid the golden eggs. Over-taxing the rich, they argue, will produce the same results metaphorically. The rich will simply move, taking their money with them.

New research, however, indicates that those opposing taxes for the wealthy are playing a bit loosey-goosey with the facts.

The study “Millionaire Migration and Taxation of the Elite: Evidence from Administrative Data,” published in the June issue of the American Sociological Review, finds that most millionaires don’t move from state to state simply to avoid big tax bills.

Millionaires tend to stay put

The study is based on 45 million tax records from U.S. tax filers who earned $1 million or more in any year between 1999 and 2011. Using that data, researchers at Stanford University and economists at the Office of Tax Analysis at the U.S. Department of Treasury discovered that most millionaires aren’t very mobile.

“The most striking finding in our study is how little elites seem willing to move to exploit tax advantages across state lines,” Cristobal Young, an assistant professor of sociology at Stanford and lead author of the study, said in a press release. “Millionaire tax flight is occurring, but only at the margins of significance.”

Young and his fellow researchers found that in any given year, of roughly 500,000 individuals filing tax returns reporting incomes of $1 million or more, only about 12,000 millionaires moved to another state.

The researchers also note that millionaires are no more likely to live in states with low or zero income taxes, like Texas or Florida, than in high income tax states, such as New Jersey or California.

Moving is a hassle even for the rich

The annual millionaire migration rate of 2.4% actually is lower than the migration rate of the 2.9% moving rate of the general population, according to the study. In fact, the researchers found the highest rates of migration among low-income tax filers. Folks making around $10,000 a year move at a 4.5% rate.

“There is a widely held perception that elites are extremely mobile, that they are more attached to money than to place, and with money you can live anywhere you want,” said Young.

While we tend to see moving at will as one of the privileges enjoyed by the rich, such relocation comes with high social and economic costs, said Young. It’s difficult for folks at all income levels to uproot family, break away from social networks and restart in a new place.

Not so different after all

And while the rich definitely are different in many ways from the rest of us working stiffs, work is one thing most of us do share.

Young notes that most millionaires today are the working rich. Rather than living off inherited wealth, they rely on earnings from employment.

“They work as lawyers, doctors, managers and financial executives,” said Young. “They are at the peak of their careers and typically earn million-dollar incomes only for several years. People avoid potentially disruptive moves when they are performing at the very top of their game.”

Limited moves are to low-tax locales

Those opposed to taxing the rich do, however, get one thing right.

The study says that in the limited instances where the rich do relocate, they are more likely to move to a state with a lower tax rate. And the most popular destination for mobile millionaires is Florida.

Of course, that could mean that they like sunny days on the beach as much as they like low taxes. But that’s a topic for additional research.

 

Herman & Company CPA’s Serves Clients in Delray Beach With An Eye to the Future

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As one of only seven states with no income tax, Florida presents unique benefits when it comes to preparing your taxes. Florida also has a variety of property tax exemptions that can reduce taxes for qualified taxpayers, as well as special exemptions for senior citizens, veterans, and the disabled. With a thorough understanding of financial trends and Floridian taxation policies, Herman & Company CPA’s, PC provides year-round financial services to residents of Delray Beach— whether you own a business, are tired of navigating social security and pension plans on your own, or simply want to minimize your taxes. We are dedicated to guiding our clients in Delray Beach towards maximizing what they have and minimizing their tax bite, as well as providing year-round financial services.

Year-Round Financial Planning for Business Owners and Individuals

In a fluctuating economy, every penny counts. In addition to helping clients prepare their annual taxes, we offer comprehensive, year-round financial support.

Business owners are passionate about the services they provide and products they sell, but sometimes small details can get lost in the big picture and result in substantial losses, or missed opportunities for savings. Herman & Company CPA’s, PC offers bookkeeping and accounting services with an eye not only on the success of your company, but also its future potential and growth. Clients in Delray Beach can be assured that our attention to detail and strategic financial planning will benefit their businesses year-round.

Herman & Company CPA’s, PC also offers services to assist individuals throughout the year. With services ranging from financial and retirement planning to life insurance, pension plans, and budgeting analysis, our experienced team creates personalized services tailored to our clients’ needs. Our roster of satisfied clients attests to the success of our customized financial strategies.

Clerical errors, confusion about current taxation policies, and disorganized record keeping can result in unnecessary financial loss. Herman & Company CPA’s, PC provides meticulous and comprehensive support to ensure that our clients in Delray Beach don’t miss out on opportunities for savings and financial growth, both during tax season and every other day of the year.

Retirement Planning Means Peace of Mind in Boca Raton

Herman Boca Blog

Boca Raton offers beautiful beaches, world-class shopping, amazing restaurants and warm weather all year round, what’s not to love? That’s why, when thousands of Americans retire every year, many move to sunnier climates in Florida to enjoy the relaxation that comes with retirement. In a fluctuating economy, however, retirement planning doesn’t end on your last day of work. The expert team at Herman & Company CPA’s, PC offers unparalleled planning services to make your retirement even easier. For our clients enjoying sun and sand in Boca Raton, Florida, the team at Herman & Company CPA’s, PC provides integral support to ensure the relaxation and peace of mind that you deserve.

Retirement planning for Boca Raton

Herman & Company CPA’s, PC offers accounting services for both retirees and those planning for retirement. Wise retirement planning is all about preparation and taking stock of your portfolio! We have a well-deserved reputation for saving clients money and looking to the future to ensure optimal returns every year. As trusted financial advisors, we work with our clients to create individualized strategies to safeguard their portfolios. We take pride in navigating the complex world of taxes to save our clients time, money and undue stress.

Bright futures for Florida retirees

How you manage your investments and savings will determine the quality of your lifestyle after your retire. However, these decisions don’t need to be made alone; with offices in New York and Florida, Herman & Company CPA’s, PC is committed to helping our clients afford a lifetime of financial stability. With our personalized touch, advanced accounting tools, and up-to-date knowledge of economic trends and policy changes, we help our clients protect their savings and investments.

Retirement planning should be easy, but the complicated world of financial policy can cause unnecessary stresses and lost savings. With over thirty years of experience, the team at Herman & Company CPA’s, PC has successfully guided hundreds of clients through annual taxes and wise financial planning decisions, always with the same mission: to provide our clients with personalized support and financial stability. 

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.