Kip Hoover

Starting a Business in the Keys

The Keys and the adjoining areas welcome new business. With increased tourism and residents the region offers constant expansion, incredible opportunities and a great lifestyle. Whether you’re considering relocating a company or starting a business from scratch, The Keys wants your business.
Since we are a destination point for tourists from all over the world, meaning substantial money flows through the area, there are opportunities for expansion of existing and/or startup of niche businesses. The Tourists wants and needs plus the lifestyle of the locals make for unique opportunities..
The good news is that from a marketing standpoint it hasn't all been said and done here--it's not like launching a business in New York City--there's still plenty of room here.
BUYING AN EXISTING BUSINESS.
There are opportunities for buying an existing business or starting up your own version. Utilizing a better idea or service, better marketing or any other angle that really makes sense to a customer is always welcome. I'd recommend you look at a business that is not just tourist related, one that will draw customers year round. If you currently have a business and/or have an entrepenurial spirit-you'll quickly see where the holes or opportunities exist here. Existing business's generally return at most about 10% that is from strictly an investment standpoint- if you're going to be working the business-then there's management fees etc that you will keep.NICHE BUSINESS possibilities
The Companies that have anything to do with remodeling, are always in need of help for all phases of the jobs, drywall, painters, tilers, installers etc. If you have skills in these areas, there is opportunity to start your own business and lock in with the builders. The main thing is to be licensed, reliable and do good work. One thing you need to know is that help in these areas is hard to find---since rents are high most workers cannot live on even up to $15.00 per hour---so if you're thinking about a business other than retail that requires lot's of help, tyou may have a problem.There are also many other areas of opportunity. Remember most people that buy homes here need services--For instance the rental houses all need pest control, yard maintenance, cleaning people and a handy man. Generally what happens is an individual or couple start a lawn business. They then go to all the Real Estate offices etc and promote it plus run ads offering their service. After they get to about 50-75 homes or so they are filled up. At this point they don't accept any more work--what I'm saying is that this is constantly evolving and that small niche business can work very well in the Keys. I can tell you from my own experience if you're reliable, return phone calls and do show up you can do well down here.
SUMMARY: The best way to get a feel for what's happening is for you to come down here.
Some of the more significant advantages to living and establishing businesses in Florida, with respect to taxes are:
• No state income tax
• No corporate income tax on sub-chapter S corporations
• First $5000 of taxable income apportioned to Florida is exempt
• No state property tax on inventory or equipment
• No business inventory tax
• No corporate franchise tax on capital stock
• No corporate tax on limited partnerships, individuals, Estates and private trusts
• No collected or assessed state property tax
• No sales tax on "boiler fuels" used at a fixed Florida location in an industrial manufacturing, processing or compounding process
• No sales and use tax on goods manufactured or produced in Florida for resale or export outside Florida
• Corporation accounts receivable (one third) exempt from intangible property tax
• Exemption of employee stock options from employer
• No property tax on goods-in-transit for up to 180 days

The Keys and the adjoining areas welcome new business. With increased tourism and residents the region offers constant expansion, incredible opportunities and a great lifestyle. Whether you’re considering relocating a company or starting a business from scratch, The Keys wants your business.
Since we are a destination point for tourists from all over the world, meaning substantial money flows through the area, there are opportunities for expansion of existing and/or startup of niche businesses. The Tourists wants and needs plus the lifestyle of the locals make for unique opportunities..
The good news is that from a marketing standpoint it hasn't all been said and done here--it's not like launching a business in New York City--there's still plenty of room here.
BUYING AN EXISTING BUSINESS.
There are opportunities for buying an existing business or starting up your own version. Utilizing a better idea or service, better marketing or any other angle that really makes sense to a customer is always welcome. I'd recommend you look at a business that is not just tourist related, one that will draw customers year round. If you currently have a business and/or have an entrepenurial spirit-you'll quickly see where the holes or opportunities exist here. Existing business's generally return at most about 10% that is from strictly an investment standpoint- if you're going to be working the business-then there's management fees etc that you will keep.NICHE BUSINESS possibilities
The Companies that have anything to do with remodeling, are always in need of help for all phases of the jobs, drywall, painters, tilers, installers etc. If you have skills in these areas, there is opportunity to start your own business and lock in with the builders. The main thing is to be licensed, reliable and do good work. One thing you need to know is that help in these areas is hard to find---since rents are high most workers cannot live on even up to $15.00 per hour---so if you're thinking about a business other than retail that requires lot's of help, tyou may have a problem.There are also many other areas of opportunity. Remember most people that buy homes here need services--For instance the rental houses all need pest control, yard maintenance, cleaning people and a handy man. Generally what happens is an individual or couple start a lawn business. They then go to all the Real Estate offices etc and promote it plus run ads offering their service. After they get to about 50-75 homes or so they are filled up. At this point they don't accept any more work--what I'm saying is that this is constantly evolving and that small niche business can work very well in the Keys. I can tell you from my own experience if you're reliable, return phone calls and do show up you can do well down here.
SUMMARY: The best way to get a feel for what's happening is for you to come down here.
Some of the more significant advantages to living and establishing businesses in Florida, with respect to taxes are:
• No state income tax
• No corporate income tax on sub-chapter S corporations
• First $5000 of taxable income apportioned to Florida is exempt
• No state property tax on inventory or equipment
• No business inventory tax
• No corporate franchise tax on capital stock
• No corporate tax on limited partnerships, individuals, Estates and private trusts
• No collected or assessed state property tax
• No sales tax on "boiler fuels" used at a fixed Florida location in an industrial manufacturing, processing or compounding process
• No sales and use tax on goods manufactured or produced in Florida for resale or export outside Florida

Florida Keys and Monroe County Cost of Living

The cost of living index is based on the composite price of groceries, housing, utilities, transportation, health care, clothing and entertainment.
Cost of living indexes will generally be higher in areas that offer access to beaches, culture, arts and recreation. In addition areas, that offer a wider variety of services such as health and education will run higher due to higher wages, and increased quality of living.

Cost of living indexing explanation
A figure of 100 points is used as an average both for the USA and Florida. For example:
Boise Idaho is ranked at a 99
Boston Mass is rated at 127.60
San Francisco at 187.23
• Statewide, Florida cities come in from a low of 90 and up.
• One way to compare Florida areas to salary requirements
For example-If you were relocating from Portland Oregon (whose rate is 120) to Orlando, and you currently make $50,000 per year, the formula is as follows
• Take the destination index, in this case Orlando-94.2 and divide by Portland’s index-120, then multiply by a salary of $50,000. This will give you a figure of $39,250, which you would be required to make in Orlando and have the same quality of life.

*The Keys and Monroe county top out the state at an average Cost of Living at 160 plus. (this is due to the home price escalation in the Keys). We only have so much land and the area is heavily regulated as to building permits. The result is that It's not going to get cheaper....A tropical paradise is in the same venue as any resort destination area, be it Martha's Vineyard or Sun Valley.

However compared to other areas nationally and given the amenities of the Keys, it is a great place to live, work and play.
(Population Weighted-State Average=100

2007 stats per Sperlings best Places http://www.bestplaces.net/

Boca Raton-154.74
Bradenton-114
Cape Coral-Ft Myers-108.0
Ft Lauderdale-132.0
Fort Walton-Destin-120
Jacksonville metro-94.0
Big Pine Key fl-132.46
Key Largo-146.0
Key West-168.0
Marathon fl-162.06
Miami metro-138.0
Melbourne-92.72
Naples Fl-250.59
Orlando metro-94.0
Palm Bay-84.56
Palm Coast-Flagler-125.01
Panama City-86.35
Pensacola metro-82.0
Sarasota-108.75
Tampa 94.60
St Pete-Clearwater-91.58
Vero-Beach Indian River-122.87
West Palm Beach metro-112.05
(Population Weighted-State Average=100
See national comparisons
Cost of living (100 = nationwide average)