Tax Savings w/ Move

LLC moving from Ct to Fl / TX

What kind of savings will I see for the business?

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Texas data points to consider:

  • Property tax is @ 2.5% - 3% per year (higher in certain cities… Austin, etc.);
  • Sales tax is @ 8.25%;
  • No personal income tax, but does have a business income tax (https://comptroller.texas.gov/taxes/franchise/);
  • I’ve been told that business insurance rates (workers comp, GL, auto, liability) are higher than other areas… but I’ve never paid them outside of Texas;
  • Payroll / salary expenses should be lower;
  • It isn’t the prettiest state, has plenty of bad weather & bugs & critters… but jobs and growth have been plentiful for decades.
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I don’t have current data, but they are about the same with GA and KY from 80 - 88. Yeah, I know. It’s an ancient data point.

I loved it. Was in Dallas during the above referenced time and the city was very business friendly. As for pretty, that’s in the eye of the beholder … but when you’ve got a 13lb bass that you’re trying to pull out of the stumps on Lake Fork, it looked mighty pretty to me.

What about FL?

I’m from Austin. Know plenty about the state

Texas has inventory tax that you may not currently have.

Assuming you’re personally moving with the LLC?

Texas Margin Tax applies to SMLLCs, there’s no exemption for disregarded entities. Florida follows federal treatment of DREs.

Depending on what your margin is (generally gross receipts minus 1 of 3 or 4 expense calculations) and some other factors such as where you physically perform the work, you may or may not owe margin tax.

I’m not sure about non-tax fees (formation and annual report type fees).

If the LLC is taxed as a C Corp, it’s difficult to know because theoretically, if your business is providing services, all of your customers are in FL and you perform all work in CT, the corp would owe no, or relatively no, tax to CT or FL while you’re in CT, but once you move to FL and start performing your work there, you’d owe tax to FL. Same applies to TX, sort of. If all of your customers are in CT and you move to FL and perform all work in FL, you’re likely going to get double taxed, if you have enough sales.

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Good point!
Despite just paying it, I forgot all about the “Business-owed Personal Property Tax” - it is horribly managed and enforcement varies from county to county, but it is another tax that can really add up on some types of businesses.