- Speaker #0
Hey everyone and welcome back to the Business Growth Collective podcast. We're here to help Florida businesses thrive.
- Speaker #1
You got it.
- Speaker #0
Especially in this crazy world of entrepreneurship.
- Speaker #1
Absolutely.
- Speaker #0
You know we've got some pretty unique advantages here in the Sunshine State.
- Speaker #1
Yeah a lot of people outside Florida don't even realize it.
- Speaker #0
Exactly.
- Speaker #1
It's true Florida's business environment really has a lot going for it especially when you think about the digital space. Right. But things are changing and it's important for business owners, you know, like you listening right now to really understand the shifts that could impact you.
- Speaker #0
That's exactly why we're doing this deep dive today. Yeah. We want to give you the inside scoop on the tax changes happening nationally and globally.
- Speaker #1
That's right.
- Speaker #0
So that you can stay ahead of the curve. Absolutely. And keep your business growing.
- Speaker #1
You can think of us as your shortcut to staying informed.
- Speaker #0
Exactly.
- Speaker #1
You know, you're busy running your business. So we've done all the hard work. We've. read all the latest news and research and we're going to break it all down for you. Yeah. In a way that's understandable and I think maybe even a little interesting.
- Speaker #0
A little more than a little.
- Speaker #1
Hopefully more than a little.
- Speaker #0
Yeah. Nobody wants to wade through pages of legal jargon.
- Speaker #1
Yeah. Who wants to do that?
- Speaker #0
And dry tax reports. No.
- Speaker #1
No. Absolutely not.
- Speaker #0
We're going to make this fun. I promise.
- Speaker #1
Yes.
- Speaker #0
And if you want even more resources to help your Florida business grow, head over to bizgrowthcollective.com. Yes. Or just shoot us a text. Love it. We'd love to connect with you.
- Speaker #1
Absolutely. We're all about community here at the Business Growth Collective.
- Speaker #0
That's right.
- Speaker #1
Okay, so let's jump right in. Okay. One of the things that makes Florida so unique for businesses is that we don't tax digital goods.
- Speaker #0
Wait, seriously? Yeah. I mean, I knew Florida had some tax advantages, but that's huge.
- Speaker #1
It's a big one.
- Speaker #0
So we're talking software, e-books, online courses. Streaming services, all that stuff.
- Speaker #1
All of it, yeah. Wow. It's a really big deal, especially in today's digital economy. You know, businesses in other states, they're scrambling to keep up with all the rules and regulations for taxing digital products. Yeah. But here in Florida, you've got that simplicity.
- Speaker #0
That's awesome.
- Speaker #1
And it's not just about compliance headaches either.
- Speaker #0
Okay, so what's the bigger picture here? Yeah. What does this mean for Florida businesses in terms of, you know, the bottom line?
- Speaker #1
Well, think about it this way. Okay. If you're selling digital products in Florida, you're essentially getting like a 7% price advantage. Wow. Right off the bat compared to your competitors in states with sales tax. Yeah. And that can make a huge difference when you're attracting customers and boosting your sales.
- Speaker #0
7%. That is a significant edge.
- Speaker #1
It is.
- Speaker #0
I'm starting to see why Florida has become such a hotbed for digital entrepreneurs.
- Speaker #1
Yeah.
- Speaker #0
But hold on a sec. If we're one of the few states not taxing digital goods, Does that mean it could change?
- Speaker #1
That is the million-dollar question. And it's definitely something that Florida businesses need to be watching very closely. You know, as other states generate more revenue from tax and digital products, Florida might feel the pressure to follow suit.
- Speaker #0
So it's not just about staying ahead of the competition. It's about staying ahead of potential changes in Florida's tax laws.
- Speaker #1
You got it.
- Speaker #0
This is getting interesting.
- Speaker #1
It is, and that's why we're here.
- Speaker #0
I know. I'm excited to keep going.
- Speaker #1
To help you navigate these changes and make sure you're prepared for whatever comes next. Yes. Okay. Let's shift gears for a minute. Okay. And talk about another key aspect of Florida's tax landscape. Economic nexus.
- Speaker #0
Economic nexus. Yes. Okay. Break that down for me. It sounds a little intimidating.
- Speaker #1
It's actually pretty straightforward.
- Speaker #0
Okay. Good.
- Speaker #1
In simple terms, if your business makes more than $100,000 in sales to Florida customers in a year. Okay. You need to collect and remit sales tax in Florida. Okay. Even if you're based in another state.
- Speaker #0
So if I'm running an online store, let's say in New York, and I ship a bunch of products to Florida customers, I got to pay Florida sales tax.
- Speaker #1
You got it. Now here's where things can get a little tricky.
- Speaker #0
Oh boy.
- Speaker #1
And this is something that trips a lot of businesses up.
- Speaker #0
Okay. I'm all ears. What's the catch?
- Speaker #1
The catch is that sales you make through online marketplaces, like Amazon Etsy or... even your own shop hosted on Shopify, they don't count towards your personal $100,000 economic nexus threshold.
- Speaker #0
So they don't count towards mine.
- Speaker #1
They don't count towards yours. Okay. Those sales are attributed to the platform's overall sales in Florida.
- Speaker #0
Oh, interesting. Yeah. So wait a minute. If I'm selling handmade soaps on Etsy and I make, say, $50,000 in sales to Florida customers, that doesn't count towards my $100,000 limit.
- Speaker #1
Exactly. That $50,000 goes on Etsy. Etsy's tab, so to speak. And if Etsy as a whole surpasses that $100,000 threshold in Florida sales, then they're responsible for collecting and remitting the sales tax.
- Speaker #0
So is that a good thing or a bad thing for individual sellers?
- Speaker #1
That's a great question.
- Speaker #0
I mean, it sounds like it simplifies things. But is there a downside?
- Speaker #1
It's a little bit of both. It definitely simplifies things in terms of compliance for individual sellers like you. Right. But it also means you need to be extra careful about understanding how these marketplace facilitator laws impact your overall tax strategy.
- Speaker #0
It's like this whole other layer of complexity that we need to be aware of as business owners.
- Speaker #1
Exactly. Yeah. And this is where having a really good tax advisor or CPA can be incredibly valuable. Absolutely. They can help you navigate all these nuances and make sure you're not accidentally triggering any unexpected tax liabilities.
- Speaker #0
Right. Because the last thing you want is to get hit with a surprise tax bill from the state or the IRS.
- Speaker #1
No one wants that.
- Speaker #0
OK, so we've covered Florida's unique advantage with digital goods.
- Speaker #1
Yeah.
- Speaker #0
And the whole economic nexus situation, especially for those of us selling on online marketplaces. Right. But we also need to talk about what's happening outside of Florida.
- Speaker #1
Right? Yes, definitely.
- Speaker #0
Because the tax world doesn't stop at the state line.
- Speaker #1
You're telling me, in fact, the national and global tax landscape. It's changing so rapidly that it can feel like trying to hit a moving target. Right. But don't worry, we're going to break it all down for you.
- Speaker #0
All right. I'm ready for it. What are some of the big trends that are happening outside of Florida that could potentially impact us here in the Sunshine State?
- Speaker #1
Well, one thing that's really interesting is how other states are starting to get creative. Okay. With new ways to generate tax revenue, especially as the digital economy continues to grow.
- Speaker #0
Oh, creative. Give me some examples.
- Speaker #1
Well, some states are starting to tax things that Florida currently doesn't. Okay. Like digital advertising services and data collection.
- Speaker #0
They're taxing data collection now.
- Speaker #1
They are, yeah.
- Speaker #0
That seems like a whole new can of worms.
- Speaker #1
It is, and it's a trend that's gaining momentum. Wow. California, for example, has been leading the charge on this. Huh? And other states are watching closely to see how it plays out.
- Speaker #0
So is this something that Florida businesses should be worried about? I mean, could we see similar taxes popping up here in the future?
- Speaker #1
It's definitely something to keep an eye on as other states generate more revenue from these types of taxes. Florida might feel the pressure to follow suit.
- Speaker #0
OK, so it's like a domino effect. Yeah. One state starts doing something new. Do that. And then others jump on board.
- Speaker #1
Yep. And that's why it's so crucial for Florida businesses to stay informed and be proactive. OK. We're going to dive deeper into these national trends and their potential impact on Florida in part two of this episode. OK,
- Speaker #0
great.
- Speaker #1
But before we go, I want to leave you with a little bit of homework. Ooh,
- Speaker #0
homework. I love it. Yeah. What do we need to be thinking about?
- Speaker #1
Here's the question I want you to consider knowing that these changes are happening outside of Florida. What steps can you take today? to make sure your business is adaptable and resilient enough to navigate whatever comes next.
- Speaker #0
Love it. So stay tuned for part two, where we'll continue our deep dive into the ever-changing world of business taxes. That's right. And in the meantime, don't forget to check out all the amazing resources we have over at bizgrowthcollective.com.
- Speaker #1
Absolutely. And a huge thank you to our partners at Build a Space for their support. Yes. Be sure to visit them at buildadotspace.com. all your workspace needs. Definitely. We'll see you back here soon.
- Speaker #0
We'll see you next time. Welcome back to the Business Growth Collective podcast. Yeah. We're in the thick of things now, exploring how Florida businesses can not only survive. Right. But truly thrive in the face of all these tax changes we've been talking about.
- Speaker #1
Yeah. In part one, we dug into some of Florida's unique advantages, like the lack of tax on digital goods. Right. But we also started to see the storm clouds gathering on the horizon with all these new tax trends popping up across the country and even globally.
- Speaker #0
Exactly. And we left our listeners with a big question. Yeah. How can Florida businesses stay adaptable and resilient in this ever-changing tax landscape?
- Speaker #1
Right.
- Speaker #0
So let's dive into some answers and give our listeners some actionable strategies they can start implementing right away.
- Speaker #1
Sounds good. I think one of the most important things for Florida businesses to remember is that. These changes, while they might seem overwhelming, can actually present some incredible opportunities for those who are prepared and proactive.
- Speaker #0
I like that spin. Yeah. So it's not just about dodging bullets and avoiding tax headaches. Right. It's about actually using these changes to your advantage.
- Speaker #1
Yeah, exactly.
- Speaker #0
But how do we do that? Yeah. Where do we even start?
- Speaker #1
Well, the first step is to make sure you really understand the current lay of the land. Okay. That means taking a good hard look at your current tax setup. and making sure you're in a strong position to adapt as things change.
- Speaker #0
This is kind of like doing a tax checkup for your business. Exactly. Making sure everything is up to date and compliant.
- Speaker #1
You got it. You want to identify any potential weaknesses or areas where you might be exposed to risk as tax laws evolve. Think of it like reinforcing your business's foundation before the storm hits.
- Speaker #0
Okay, that makes sense. So step one is to assess our current situation and make sure we're on solid ground. What comes next? How do we actually make our businesses? more adaptable and resilient.
- Speaker #1
Well, one of the most powerful tools you can use is automation. Okay. I know automation can sound a bit buzzwordy. Yeah. But trust me, this is something that can truly revolutionize the way you handle your business taxes.
- Speaker #0
Okay. I'm intrigued. Tell me more about this automation magic.
- Speaker #1
All right. So think about all the time and energy you currently spend on things like calculating sales tax filing returns. Yeah. keeping track of all the different tax rules and regulations.
- Speaker #0
It's a lot.
- Speaker #1
It's a lot,
- Speaker #0
right? Yeah, and honestly, sometimes it feels like a full-time job in itself.
- Speaker #1
Yes, especially when you're juggling all the other demands of running a business. Oh, yeah. But here's the good news. Okay. There are some amazing software platforms out there that can automate a lot of these tasks for you.
- Speaker #0
What?
- Speaker #1
Yeah, these platforms can calculate sales tax in real time. Wow. Based on the specific location of your customers. Okay. And they can even generate and file your tax returns automatically.
- Speaker #0
Wait, hold on. They can actually file my taxes for me. Sign me up.
- Speaker #1
It's pretty close.
- Speaker #0
That sounds like a dream come true.
- Speaker #1
I know. And it's not just about saving time and effort either. Automation can also dramatically reduce the risk of human error. Right. Which can lead to costly penalties and audits.
- Speaker #0
Okay. You've convinced me automation is definitely something I need to look into. Yeah. Are there any specific platforms or software you recommend for Florida businesses?
- Speaker #1
You know, I can't really recommend specific... platforms here. Okay. As everyone's needs are different.
- Speaker #0
Fair enough.
- Speaker #1
But I can tell you what to look for. Okay. You want a platform that's specifically designed for businesses operating in multiple states, one that can handle the complexities of Florida's tax laws, as well as the evolving rules in other jurisdictions.
- Speaker #0
Right. Because it's not just about staying compliant in Florida. It's about being prepared for potential expansion into other states as your business grows.
- Speaker #1
Exactly. And another... key feature to look for is seamless integration with your existing accounting software. You want a platform that can talk to your other systems and share data smoothly to avoid double entry and headaches.
- Speaker #0
Okay, that makes sense. It's all about creating a streamlined and efficient system. Yeah. So automation is a big one. Yep. What else can Florida businesses do to build that resilience we've been talking about?
- Speaker #1
Well, another strategy that can be incredibly powerful is diversifying your revenue streams. Okay. And I know I know this is something you hear all the time, the business world. Right. But it's especially important in the context of these evolving tax landscapes.
- Speaker #0
Okay. I'm listening. Why is diversification so crucial for navigating these tax changes?
- Speaker #1
Think of it like this. If all of your business eggs are in one basket, so to speak. Okay. And that basket gets hit with a new tax or regulation. Yeah. It can have a devastating impact on your bottom line.
- Speaker #0
Oh, yeah. I see what you mean. It's like putting all your faith in one particular product or market. If that market dries up or that product becomes obsolete, you're in trouble.
- Speaker #1
Exactly. But if you have multiple revenue streams, you spread that risk out. So if one area of your business is negatively impacted by a tax change, you have other areas that can help cushion the blow.
- Speaker #0
OK, that makes a lot of sense. Yeah. But how do we actually go about diversifying our revenue streams? Yeah. I mean, it's easy to say, don't put all your eggs in one basket. Right. But. It's another thing entirely to actually figure out how to create those additional baskets.
- Speaker #1
That's a great point. And it's definitely something that requires some strategic thinking and planning. But here are a few ideas to get your creative juices flowing. Okay. First, think about expanding your product or service offerings. Okay. Do you have any complementary products or services you could offer to your existing customer base? Or could you create a new product or service that taps into a different market segment?
- Speaker #0
Interesting. So if I'm selling, let's say, handmade jewelry online.
- Speaker #1
Yeah.
- Speaker #0
Maybe I could start offering jewelry making workshops or create a line of DIY jewelry kits.
- Speaker #1
That's a great example. And by expanding your offerings, you're not only diversifying your revenue. Right. But also potentially attracting new customers and creating new opportunities for growth.
- Speaker #0
Okay. I'm starting to see the possibilities. What other diversification strategies can we explore?
- Speaker #1
Another option is to explore new geographic markets. Okay. If you're currently selling primarily within Florida, could you expand your reach to other states or even internationally? Interesting. This can not only open up new revenue streams, but also help you hedge against potential tax changes in any one particular location.
- Speaker #0
Right. And with the rise of e-commerce and digital marketing, it's easier than ever to reach customers beyond your immediate geographic area.
- Speaker #1
Exactly. Of course, expanding into new markets comes with its own set of challenges and considerations. Sure. including understanding the tax laws and regulations in those new jurisdictions. But with careful planning and the right support, it can be an incredibly rewarding way to grow your business and build resilience.
- Speaker #0
Okay, so we've got diversification as a key strategy for navigating these tax changes. What else should Florida businesses be thinking about?
- Speaker #1
Well, one of the most important things you can do is surround yourself with a team of experts who can help you navigate the complexities of the tax world.
- Speaker #0
I'm sensing a theme here. We've talked about the importance of having a good tax advisor or CPA, especially when it comes to things like marketplace facilitator laws.
- Speaker #1
Exactly. And it's not just about having someone who can crunch the numbers and file your tax returns. You want a trusted advisor. who understands your business goals, who can proactively identify potential tax liabilities, and who can help you develop strategies to minimize your tax burden legally and ethically.
- Speaker #0
It's about finding someone who can be a true partner in your business's success.
- Speaker #1
Absolutely. And it's not just about tax advisors either. Depending on the nature of your business, you might also want to consider bringing on a legal advisor who specializes in business law. And can help you navigate any legal challenges or opportunities that arise.
- Speaker #0
So it's about building a team of experts who can provide guidance and support in all areas of your business.
- Speaker #1
Exactly. And don't forget, the Business Growth Collective is here to help connect you with those experts and provide you with the resources you need to thrive.
- Speaker #0
Right. We've got a whole network of trusted professionals and a ton of valuable content over at bizgrowthcollective.com.
- Speaker #1
And speaking of valuable resources. A huge shout out to our partners at Build-A-Space for their continued support.
- Speaker #0
Absolutely.
- Speaker #1
Be sure to visit them at Build-A-Dot-Space for all your workspace needs.
- Speaker #0
Yes, we're so grateful for their partnership. Yeah. Okay, so we've covered a lot of ground in part two. We have. We've talked about the importance of conducting a tax checkup, embracing automation, diversifying revenue streams, and building a strong team of experts. But we're not done yet. Nope. There's still more to unpack.
- Speaker #1
That's right. In part three, we're going to dive even deeper into specific strategies and navigating the national and global tax trends that could impact Florida businesses in the years to come.
- Speaker #0
So stay tuned for part three, where we'll continue our deep dive into the ever-evolving world of business taxes. In the meantime, keep asking those great questions, keep learning, and keep growing. Welcome back to the Business Growth Collective podcast for the final part.
- Speaker #1
Yeah.
- Speaker #0
Of our deep dive into Florida business taxes in a changing world.
- Speaker #1
It's been a journey.
- Speaker #0
I know we've talked about Florida's unique advantages.
- Speaker #1
We have.
- Speaker #0
Explored some potential challenges. And even started to map out a game plan for staying ahead of the curve.
- Speaker #1
Exactly. We've laid a solid foundation in parts one and two. And now it's time to put all the pieces together and equip you with the knowledge and strategies. Yes. You need to not just survive, but truly thrive in this evolving tax landscape.
- Speaker #0
Okay. I'm ready for the grand finale.
- Speaker #1
All right, let's do it.
- Speaker #0
Give us those golden nuggets of wisdom. that will help Florida businesses like mine navigate these changes successfully.
- Speaker #1
Well, one of the things I want to emphasize is the importance of staying informed. I know it sounds simple. Right. But in the world of taxes, knowledge truly is power.
- Speaker #0
It's true. But it's easy to get overwhelmed with all the information out there. Yeah. Where should Florida businesses even begin when it comes to staying informed about these tax changes?
- Speaker #1
That's a great question. And honestly, it doesn't have to be as complicated or time consuming as you might think. One of the easiest things you can do is subscribe to industry newsletters and publications that focus on tax issues relevant to Florida businesses. There are some fantastic resources out there that provide updates on new legislation, court rulings, and other developments that could impact your business. Okay,
- Speaker #0
so subscribing to a few key newsletters is a good starting point. Yeah. What else can we do to stay in the loop?
- Speaker #1
Another strategy I highly recommend is attending webinars and conferences that focus on tax and business law. These events often feature experts who can provide insights and practical advice on navigating specific tax challenges and opportunities. Plus, they're a great way to network with other business owners and learn from their experiences.
- Speaker #0
Ooh, I love the networking aspect. Yeah. It's always helpful to connect with other entrepreneurs who are going through similar challenges.
- Speaker #1
Absolutely. And don't underestimate the power of those informal conversations and connections. You might pick up a valuable tip or insight that you wouldn't find anywhere else.
- Speaker #0
Right. Okay, so we've got... Subscribing to newsletters, attending webinars and conferences. Yeah. Any other tips for staying informed?
- Speaker #1
Well, this might seem obvious, but it's worth mentioning. Don't be afraid to reach out to your tax advisor or CPA and ask questions. They're there to help you understand the complexities of tax law and guide you through the ever-changing landscape.
- Speaker #0
Right. And I think sometimes as business owners, we're hesitant to ask for help because we don't want to seem like we don't know what we're doing. Yeah. But honestly, it's much better to ask a question and get clarification than to make a costly mistake because we were too afraid to speak up.
- Speaker #1
I couldn't agree more. Your tax advisor is your ally in this journey, so don't be afraid to tap into their expertise and ask for their guidance.
- Speaker #0
Okay, so we've talked about the importance of staying informed, but what about actually implementing changes within our businesses to adapt to these evolving tax laws? Yeah. Are there any specific strategies we can use to make this process smoother?
- Speaker #1
Absolutely. One of the most effective strategies is to build flexibility into your business model from the ground up.
- Speaker #0
Okay, flexibility. I like the sound of that. Good. But how do we actually build that flexibility into our businesses?
- Speaker #1
Well, it starts with thinking about potential tax changes as you're making decisions about things like your pricing structure, your product offerings, and even your marketing strategies. For example, if you're considering expanding into a new market factor, potential tax implications into your cost analysis and pricing model.
- Speaker #0
So it's about being proactive and anticipating potential changes rather than reacting to them after the fact.
- Speaker #1
Exactly. And this proactive approach can also help you identify potential opportunities. For instance, if you know that a certain state is considering implementing a new tax on digital services, you might be able to adjust your business model to take advantage of that change.
- Speaker #0
Ooh, interesting. So it's not just about mitigating risk. It's also about potentially turning these changes into opportunities for growth.
- Speaker #1
Exactly. And another key aspect of building flexibility is to have a solid understanding of your financial position. That means having accurate and up-to-date financial records, monitoring your cash flow closely. and having a plan in place for managing potential financial challenges.
- Speaker #0
Right, because if a sudden tax change throws your financials out of whack, you need to be able to adapt quickly and make adjustments to stay afloat.
- Speaker #1
Exactly, and this is where having a good relationship with your financial advisor or accountant can be invaluable. Yeah. They can help you develop a financial strategy that's resilient and adaptable to changing conditions.
- Speaker #0
Okay, so we've talked about staying informed. building flexibility into our business models and having a strong financial foundation. Any other final words of wisdom for our Florida business owners?
- Speaker #1
Well, I would say this. While all these changes can feel daunting, it's important to remember that you're not alone in this journey. There are countless resources available to help you navigate these challenges and succeed.
- Speaker #0
Right. And the Business Growth Collective is one of those resources. We're here to provide support, guidance, and a sense of community. for Florida entrepreneurs.
- Speaker #1
Absolutely. We've got a wealth of information on our website, BizGrowthCollective.com. Yes. And we're always just a text away.
- Speaker #0
And of course, we couldn't do this without the amazing support of our partners at Build-A-Space. Check them out at Build-A-Dot-Space for all your workspace needs.
- Speaker #1
They're truly an invaluable resource for businesses of all sizes.
- Speaker #0
Okay. So as we wrap up this deep dive into Florida business taxes, I want to leave our listeners with this thought. Okay. Change is inevitable. It is. But with the right knowledge, strategies, and support, you can not only adapt to those changes, but actually use them to your advantage and propel your business to new heights.
- Speaker #1
Beautifully said. Stay curious, stay informed, and most importantly, keep growing.
