FLORIDA
GEOGRAPHY
Probably no geographical feature identifies North America as easily as the peninsula of Florida. Florida is divided into 67 counties. To the north and west, the “panhandle” shares borders with Georgia and Alabama. The bottom two-thirds of the state lies on the distinctive peninsula, surrounded by water on three sides. Florida’s location near the Atlantic Ocean, the Gulf of Mexico, and the Caribbean Sea has made it a crossroads of European, North American, and South American history. When geographers study Florida, they look at its physical conditions-land, water, plants, animals, and climate. Just as important, though, is the study of human geography: the study of people, who they are, where they live, and how they live. Today, more than ever before, geographers are also interested in how humans relate to and interact with their environment.
HISTORY
Florida, which joined the union as the 27th state in 1845, is nicknamed the Sunshine State and known for its balmy climate and natural beauty. Spanish explorer Juan Ponce de Leon, who led the first European expedition to Florida in 1513, named the state in tribute to Spain’s Easter celebration known as “Pascua Florida”. During the first half of the 1800s, U.S. troops waged war with the region’s Native American population. During the Civil War, Florida was the third state to secede from the Union.
Beginning in the late 19th century, residents of Northern states flocked to Florida to escape harsh winters. In the 20th century, tourism became Florida’s leading industry and remains so today, attracting millions of visitors annually. Florida is also known for its oranges and grapefruit, and some 80 percent of America’s citrus is grown there.
Date of Statehood: March 3, 1845 Capital: Tallahassee
Population: 21,3 Millions (2018) Size: 65,758 square miles
Nickname(s): The Sunshine State Motto: In God We Trust
Total GDP (2018): 1,036,323 M. $ GDP GROWTH (2018): 3.5%
Historically, Florida’s economy has been based primarily upon agricultural products such as cattle, sugar cane, citrus fruits, tomatoes, and strawberries. Economic prosperity in the 1920s stimulated tourism to Florida and related development of hotels and resort communities. Devastating hurricanes in 1926 and 1928, followed by the Great Depression, brought that period to a halt. Florida’s economy did not fully recover until the military buildup for World War II. In the 1960s, many refugees from Cuba arrived in Miami, where the federal government used the facility to process, document and provide medical and dental services for the newcomers. In recent decades, more migrants have come
for the jobs in a developing economy. Today, Florida is distinctive for its large Cuban expatriate community and high population growth, as well as for its increasing environmental issues. The state’s economy elies mainly on tourism, agriculture, and transportation, which developed in the late 19th century. The state is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Atlantic Ocean. Florida is the 3rd most populous and the 8th most densely populated of the U.S. states. Jacksonville is the most populous municipality in the state and the largest city by area in the U.S. Miami is the metropolitan area most populous in Florida. Tallahassee is the state’s capital. Florida has a total of 4,510 islands. This is the second-highest number of islands of any state in the U.S. Much of the state is at or near sea level and is characterized by sedimentary soil. The climate varies from subtropical in the north to tropical in the south. Along with Hawaii, Florida is one of only two states that has a tropical climate. This is the only continental state that has botha tropical climate and a coral reef. The Florida Reef is the only living coral barrier reef in the continental United States, and the third-largest coral barrier reef system in the world.
SOCIAL CULTURE AND RELIGION
Demography
Without any doubts Miami is an incredible multicultural metropolis, home to lot of Americans coming from US States as well as Latin America and Caribbean countries. Moreover, also European communities deeply influenced Miami’s population and culture. In fact, in 2012 the US Census Bureau estimated that 58% of the population was represented by recent immigrants, but what may be astonishing is that Cuban people achieved almost a third of Miami’s population. Actually, several Latin America inhabitants decided to settle in Miami generating a profound impact on its cultural life, habits and language. Today around two-thirds of Miami’s population speak Spanish.
Cost of living
State and local governments are committed to keeping low its tax environment, which provides no Individual Income Tax (0%) and a Corporate Income Tax with one of the lowest rate (5.5%) in USA, giving companies great incentives to invest in Florida. Today Miami’s cost of living is below that of other cities with similar economic growth, from different points of view, and the salary needed to maintain the current standards of living in Miami-Dade County is much lower than in the major U.S. cities.
Religion
The religious life of Florida follows that of the rest of the USA. The State is predominantly Christian with Roman Catholics and Baptists each making around one-third of the total. The other religions of the world such as Judaism and Islam are also represented.
Employement
Florida’s seasonally adjusted unemployment rate was 3.2 percent in October 2019, unchanged from the September 2019 rate, and down OF 0.1 percentage point from a year ago. There were 331,000 jobless Floridians out of labor force of 10,465,000. The U.S. unemployment rate was 3.6 percent in October. Florida’s seasonally adjusted total nonagricultural employment was 9,079,000 in October 2019, an increase of 21,400 jobs (+0.2 percent) over the month. The state gained 228,600 jobs over the year, an increase of2.6 percent. Nationally, the number of jobs rose1.4 percent over the year.
POLITICS
Like the national government, the state systems are composed of three branches: executive, legislative and judicial, which generally carry out the same functions as their correspondents at the federal level. The head of the state executive is the governor, elected by the people, generally for four years. Florida is a state that experiences an internal political conflict between the liberal region of the south-east and the traditionally conservative northern region. From 1952 to 1964, most voters were democratic, but the state voted for the Republican presidential candidate in all elections except on occasion. Florida is one of nine states that do not impose a personal income tax.
Cabinet
Florida is unique among U.S. states in having a strong cabinet-style government. Members of the Florida Cabinet are independently elected, and have equal footing with the governor on issues under the Cabinet’s jurisdiction. The Cabinet consists of the attorney general, the commissioner of agriculture and the chief financial officer. Along with the governor, each member carries one vote in the decision making process. In the event of a tie, the side of the governor is the prevailing side. Cabinet elections are held every four years, on even numbered years not divisible by four (such as 2010, 2014, etc.).
The Florida attorney general is the state’s chief legal officer. As defined in the Florida Constitution,the attorney general appoints a statewide prosecutor who may prosecute violations of criminal law occurring in or affecting two or more judicial circuits. The attorney general is responsible for the Department of Legal Affairs. The attorney general is head of the Florida Department of Legal Affairs.
The Florida chief financial officer’s duties include monitoring the state’s finances and fiscal well being, auditing and assuring that state programs are properly spending money and overseeing the proper management of the revenue and spending of the State. The chief financial officer is the head of the Florida Department of Financial Services (FDFS).
Juridical branch
The Supreme Court of Florida is the highest court of Florida and consists of seven judges: the chief justice and six justices. The Court is the final arbiter of Florida law, and its decisions are binding authority for all other state courts. The five Florida District Courts of Appeal are the intermediate appellate courts. The 20 Florida circuit courts are trial courts of original jurisdiction for most controversies
VISA – Green card
A Green Card holder (permanent resident) is someone who has been granted authorization to live and work in the United States on a permanent basis. As proof of that status, U.S. Citizenship and Immigration Services (USCIS) grants a person a permanent resident card, commonly called a “Green Card.”IE
ECONOMY
Florida’s $1.0 trillion economy is the fourth largest in the United States. If it were a country, Florida would be the 16th largest economy in the world. In 2017, Florida’s per capita personal income was $47,684. Florida exports nearly $55 billion in goods made in the state.
The Miami Metropolitan Area is by far the largest urban economy in Florida and the 12th largest in the United States with a GDP of $345 billion as of 2017. This is more than twice the number of the next metro area, the Tampa Bay Area, which has a GDP of $145 billion. Florida is home to 51 of the world’s billionaires with most of them residing in South Florida.
1920: Economic prosperity in the 1920s stimulated tourism to Florida and related development of hotels and resort communities. Combined with its sudden elevation in profile was the Florida land boom of the 1920s, which broughta brief period of intense land development.
1926-1945: Devastating hurricanes in 1926-1928 followed by the Great Depression, brought that period toa halt. The growing availability of air conditioning, the climate, anda low cost of living made the statea haven. Migration and the Northeast sharply increased Florida’s population after 1945.
1960: In the 1960s, many refugees from Cuba arrived in Miami. More migrants came there for the jobs in a developing economy.
TODAY: The state’s economy relies mainly on tourism, agriculture, and transportation, which developed in the late 19th century.
- Tourism: In Orlando are concentrated the theme parks that employ 66.000 Florida residents. Walt Disney World is the largest single-site employer in the nation, spending more than $1.2 billion on payroll and $474 million on employees benefits. Florida’s cruise industry generated 11.5 million passenger and crew visits, accounting for almost 50% of all passenger and crew visits in the United States. Onshore spending by passengers and crews produced just over $1 billion.
- Agriculture: Florida’s agriculture industry employs 2 million people and contributes more than $104 billion to the state’s economy each year. Florida’s warm climate offers farmers a growing season from 100 to 200 days longer than other regions of the country. The nation’s highest annual average precipitation of any state also increases yield production to create ideal growing conditions. The top five agricultural commodities in 2018 were greenhouse and nursery products, oranges, tomatoes, dairy products, and sugarcane. Florida produces 70% of the annual U.S. production of citrus, and 95% of commercial orange production in the state is mostly used for producing 40% of the world’s orange juice supply.
- International Trade: Florida is one of the largest export states in the United States and is a major gateway for merchandise trade between North America, Latin America, the Caribbean, and other world regions. Forty percent of all U.S. exports to Latin and South America pass through Florida. Given the convenient geographic layout of the state, most companies are a short drive to one of four major cargo gateway ports located in Florida. This access gives even small companies opportunities to export products overseas.
- Aerospace and Aviation: The annual economic impact of aviation-related activities in Florida is estimated at $144 billion, and its 19 commercial airports account for 10% of the nation’s total passengers. As of 2017, 1,755 aerospace and aviation companies are located in Florida, employing more than 103,000 workers making an average salary of $66,000. Florida is home to 20 major military installations and more than 50,000 active duty military. No other state rivals Florida’s history in the aerospace industry, and it is uniquely positioned to continue to be a leader in the field for some time. It is home to two of the nine active spaceports in the United States: Cape Canaveral Spaceport and the Cecil Field Spaceport.
- Life Sciences: Florida is home to world-renowned biomedical research institutes, pharmaceutical and medical device companies, and more than 46,000 healthcare establishments. Over 200 pharmaceutical and medicine manufacturing companies specializing in the development and manufacturing of new treatments.
- Financial Services: Florida has the highest percentage of bank deposits held at out-of-state headquartered banks. Taking advantage of Florida’s business-friendly legislation, favorable tax climate and large market, finance, insurance, and professional services firms represent 11% of the state’s employment, with nearly 130,000 firms employing almost 900,000 Floridians.
IMPORT/EXPORT
U.S.A. IMPORT
The United States of America imported US$2.614 trillion worth of goods from around the globe in 2018. That dollar amount reflects an 8.4% gain since 2014 and an 8.5% uptick from 2017 to 2018. From a continental perspective, 45.4% of America’s total imports by value in 2018 were purchased from providers in Asia. Fellow North American trade partners supplied 25.8% of import sales to the U.S. while 21.9% worth originated from Europe. At 4.9%, suppliers from Latin America excluding Mexico but including the Caribbean accounted for a smaller percentage of American import purchase, with an even tinier 1.4% coming from Africa and 0.6% from Oceania led by Australia. Given America’s population of 329.3 million people, its total $2.614 trillion in 2018 imports translates to roughly $7,900 in yearly product demand from each U.S. resident.
The following product groups represent the highest dollar value in America’s import purchases during 2018. Also shown is the percentage share each product category represents in terms of overall imports into the US.
- Machinery including computers: US$386.4 billion (14.8% of total imports)
- Electrical machinery, equipment: $367.1 billion (14%)
- Vehicles: $306.7 billion (11.7%)
- Mineral fuels including oil: $241.4 billion (9.2%)
- Pharmaceuticals: $116.3 billion (4.5%)
- Optical, technical, medical apparatus: $93.4 billion (3.6%) ● Furniture, bedding, lighting, signs, prefab buildings: $72.1 billion (2.8%)
- Plastics, plastic articles: $61.9 billion (2.4%)
- Gems, precious metals: $60.8 billion (2.3%)
- Organic chemicals: $54.6 billion (2.1%)
USA’s imports of pharmaceuticals had the fastest-growing increase in value among the top 10 import categories, up 20.5% from 2017 to 2018. In second place for expanding import purchases was machinery including computers via an 18.6% uptick. US imports of mineral fuels-related goods delivered the third-fastest improvement thanks to its 18.3% gain, propelled by America’s higher purchases of crude and refined petroleum oils.
FLORIDA EXPORT
Florida shipped US$57.2 billion worth of goods around the globe in 2018. That dollar amount reflects a 4.2% increase from 2017 to 2018 and a 6.2% upturn since 2015. Florida mostly occupies a peninsula in the southeastern-most region of the continental United States separating the Gulf of Mexico and the Atlantic Ocean. Florida is America’s eighth-biggest exporter by state well behind front-runners Texas, California, New York and Washington state. The value of Florida’s exports equals 3.3% of United States’ overall exported products for 2018. Based on statistics from the US Department of Commerce’s Bureau of Economic Analysis (BEA), Florida’s exported products represent 5.4% of the state’s total economic output or real Gross Domestic Product in 2018 ($1.059 trillion in current dollars based on BEA statistics).
Given Florida’s population of 21.299 million people, its total $57.2 billion in 2018 exports translates to roughly $2,700 for every resident in the Sunshine State.
Florida’s unemployment rate was 3.4% as of April 2019.
The following export products represent the highest dollar value in Florida global shipments during 2018. Also shown is the percentage share each export category represents in terms of overall exports from Florida.
- Aircraft including engines, parts: US$6.6 billion (11.5% of Florida’s total exports)
- Cell phones: $2.9 billion (5.1%)
- Gold (unwrought): $2 billion (4%)
- Modems, similar reception/transmission devices: $1014 million (1.8%)
- Integrated circuits (processors/controllers): $887 million (1.5%)
- Small portable digital computers: $791 million (1.4%)
- Polyamides: $698 million (1.2%)
- Computer parts and accessories: $656 million (1.1%)
- Medical/surgical/dental/veterinarian instruments: $649 million (1.1%)
- Perfumes, toilet waters: $645 million (1.1%)
Florida’s top 10 exports accounted for over a quarter (29.3%) of the overall value of the state’s global shipments.
Polyamides were the fastest-growing among the top 10 export categories, up by 31.5% from 2017 to 2018. In second place for improving export sales were medical, surgical, dental and veterinarian instruments or appliances which rose 9.3%. Florida’s third-fastest gain was 8.4% year over year for two product categories namely modems and similar reception or transmission devices, and computer parts and accessories.
The leading decliners among Florida top 10 export products were small portable digital computers (down – 10.6%) and unwrought gold (down – 10.4%).
Thirty-five of Florida-based corporations rank among Fortune 1000 Companies, a list that showcases America’s largest businesses. Selected examples are shown below.
- Dycom Industries (telecommunications)
- Tupperware Brands Corp (household goods, cosmetics, personal care)
- Platform Specialty Products Corp (chemicals)
- B/E Aerospace (aircraft-related products)
- Citrix Systems (software, cloud computing technologies)
- Roper Technologies (systems, controls, instruments)
- Watsco (air conditioning, heating, refrigeration related goods)
- MasTec (pipelines, wireless communications, infrastructure)
- Harris Corp (communication, electronic, space, intelligence systems)
- Ryder (transportation/supply chain management goods)
ASPECTS TO CONSIDER FOR BUSINESSES
Taxes
Florida doesn’t have a personal income tax, an estate tax, or an inheritance tax, although it does impose sales and property taxes. The state’s overall tax burden has consistently ranked among the nation’s lowest for decades, according to the Tax Foundation, a non-profit and non-partisan educational and research organization. It was just 8.9 percent in 2017.
The Florida property tax
The Florida constitution reserves all revenue from property taxes for local governments— the state itself doesn’t use any of this money. Property taxes are based on the “just value” or market value of properties as assessed bya local appraiser on Jan,1st of each year. Increases in value are limited to3% of the previous year’s assessment or the Consumer Price Index (CPI) in Florida, whichever is less. Taxes are based on millage rates set by local governments, with 10 mills being equal to 1%. The millage rate is multiplied by the value of the property to determine the dollar amount of property tax. County, city, and school districts are permitted to levy taxes at up to 10 mills each.
PROPERTY TAX EXEMPTIONS
Florida offers several property tax exemptions that can help reduce the tax bill if someone qualifies for any of them. They include a homestead exemption of up to $25,000 as of 2018, or $50,000 for married taxpayers. Exemptions are also available for senior citizens over age 65 and the disabled. Veterans can qualify for four different types of exemptions, and widows and widowers are entitled to a $500 exemption provided they haven’t remarried and weren’t divorced at the time of the ex-spouse’s death. Homeowners who are legally blind are also entitled to a $500 exemption.
FLORIDA INCOME TAX
Florida is one of only seven states that has no personal income tax. The state tax on intangible assets such as stocks, bonds, and mutual funds was repealed in 2007, so this type of property is no longer taxed, either.
STATE CORPORATE TAXES
Florida does impose a 5.5% corporate income tax. Florida Democrat Andrew Gillum vowed to increase this to 7.75% when he campaigned for governor in November 2018. His goal was to raise an additional $1 billion a year in revenues which would go mostly to education, but he was narrowly defeated by a .2% margin. The tax rate remains at 5.5%. There are no “death taxes” in Florida, either on the value of estates or on gifts received by beneficiaries. The Florida estate tax was repealed effective Dec. 31, 2004 and it cannot be reinstated. The state’s constitution prohibits it.
OTHER FLORIDA TAXES
Florida state taxes apply to several types of purchases. A stamp tax of 70 cents per $100 of value is assessed on documents that transfer interest in Florida real estate, such as warranty deeds and quit claim deeds. A tax is also levied on notes, bonds, mortgages, liens, and other written obligations to pay that are filed or recorded in Florida. The rate for these types of contracts is 35 cents per $100 of value as of 2018. Counties are permitted to add additional fees. Florida charges a sales tax of 6%. Food, prescription drugs, and non-prescription drugs are exempt from taxation. Counties can charge their own additional sales taxes, bringing the tax rate up to 9.5% in some areas. Of Florida’s counties, 55 charge an additional sales tax. The Florida gas tax is actually somewhat exorbitant, offsetting some of the state’s other tax breaks—at least for those who drive a lot. It’s 59.76 cents a gallon as of 2018, although this figure includes a federal excise tax. Florida ranks eighth for the highest gas tax in the country. The state charges a $1.34 tax on each pack of cigarettes. There’s also a surcharge for other tobacco products, excluding cigars, that’s equal to 60% of the wholesale price. Still, the state ranks 33rd overall for this tax rate. Hotel tax rates vary by county. They range from 2% to 6% and this is in addition to the sales tax rate of 6%. These taxes are known as the Tourist Development Tax and are charged on hotel rooms, but rooms that are leased for more than six months are exempt. On the bright side, you can buy a flag in Florida, either the U.S. flag or that of the state—without paying any tax at all.
OPPORTUNITIES
HOW TO START A BUSINESS?
- How many small businesses are there in Florida?
There are about 2.5 million small businesses in Florida. They make up 99.8% of all businesses in the state and employ 3.3 million workers, which is about 42.2% of the state’s private sector workforce.
- How do you start a small business in Florida?
To start a business in Florida, you should first check with your county’s tax collector to determine whether your business requires a license. You also must register your business with the state Department of Revenue, along with the federal IRS. If you are operating a corporate entity or a business with a fictitious name, you must also register your company with the Department of State
- How much does it cost to start a business in Florida?
The cost of starting a business can vary depending on the exact nature of your company. However, all businesses are subject to a $100 fee to file articles of organization with the Florida Secretary of State’s office, as well as a $25 registered agent fee.
In addition to these costs, you might be required to secure a business license and business insurance. If you wish to obtain a copy of your articles of organization, the state charges an added fee of $30, as well as a $5 fee for a Certificate of Status.
What are the requirements for small business insurance in Florida?
Florida does not require businesses to carry commercial liability insurance, although it is wise to carry some insurance to protect your assets. Also, if your business operates cars or trucks, you must purchase a commercial vehicle policy.
Workers’ compensation insurance is mandatory for any company with at least four employees in Florida, regardless of whether they are full-time or part-time. Also, employers are required to report claims within seven days after they are notified that an accident or injury occurred.
- Do you need a business license in Florida?
Most businesses are required to obtain a business license to legally operate in Florida. A general business license is called a business tax receipt and can be obtained when registering your business with the county tax collector. Any additional licenses or permits, as well as their costs, will vary depending on the type of business you operate and its location. Failure to obtain the proper licenses and permits for your business could result in fines and, ultimately, the closure of your business.
- What is the cost of a business license in Florida?
The minimum cost of obtaining a business license in Florida is $125. However, it could be higher if your business requires additional licenses or permits.
When launching your business, check with local, county and state officials to understand your specific obligations under Florida law.
- What is the processing time to form your Florida LLC?
In Florida, the standard processing time to form your LLC is six to eight business days, which is relatively quick by national standards. An expedited filing in Florida could process as quickly as two to three business days. Processing times are never guaranteed and are subject to the speed with which government offices are able to review and approve all filings.
- What are Florida’s new hire reporting requirements?
Florida state law requires all employers to report any newly hired or rehired employees to the state directory within 20 days of their start date. This includes self-employed individuals who must report themselves as new hires to the state. Independent contractors, however, are exempt from the law.
INTERNATIONAL RELATIONS
China-USA war trade
The trade war between China and United States is a commercial dispute that began on March 22, 2018, after US President Donald Trump announced his intention to impose $ 50 billion of customs duties on Chinese products pursuant to Article 301 of the United States, the Trade Act of 1974, motivating such action with “unfair commercial practices” and the theft of intellectual property operated by the government and Chinese companies. In retaliation, on April 22, 2018, China Imposed duties on more than 128 US products, in particular soy, one of the leading US export products to China.
Effects
Globally, foreign direct investment has slowed. The trade war has hurt the European Economy, particularly Germany, even though trade relations between Germany and China and between Germany and the U.S. remain good. The Canadian economy has seen negative effects as well. Like the U.S., Britain, Germany, Japan and South were all showing “a weak manufacturing performance” as of 2019. Several Asian governments have instituted stimulus measures to address damage from the trade war, though economists said this may not be effective. Some countries have benefited economically from the trade war, at least in some sectors, due to increasing exports to the United States and China to fill the gaps left by decreasing trade between these two economies. Beneficiaries include Vietnam, Chile, Malaysia and Argentina. Vietnam is the biggest beneficiary, with technology companies moving manufacturing there. South Korea has also benefited from increased electronics exports, Malaysia from semiconductor exports, Mexico from motor vehicles, and Brazil from soybeans.