Residency Battle of the States- South Dakota vs Florida

South Dakota vs. Florida: The Residency Smackdown

Lately, South Dakota has been getting some bad press from location-independent residents, with more and more people pointing to Florida (and Texas) as better alternatives. But before we tackle Texas (stay tuned for the next blog post: South Dakota vs. Texas), let's dive headfirst into the Florida option.

At first, I thought researching this would take hours—maybe even days. I kept pushing it off like that closet you avoid cleaning. But to my surprise, the truth surfaced faster than expected: Florida, my friends, is not the magical kingdom of friction-free residency that some nomad resources would have you believe.

Florida Residency: Two Flavors—Tax and Asset Protection

When talking about becoming a Florida resident, you're really talking about two things: tax status and asset protection. Tax status means you're claiming a Florida address on your federal income tax returns and possibly paying Florida property taxes and sales taxes. Asset protection, on the other hand, is Florida’s promise to safeguard your assets from creditors. Sounds pretty neat, right?

Here’s the kicker: Both of these require one thing—getting a Florida driver’s license. Florida law says if you’re a resident, you need a Florida ID. And, like other states, you’ll need to cough up proof of a residential address.

So, Why Do Many Nomad Resources Hype Florida?

Well, it’s simple. Most of these resources are based in Florida. There are over 200 of them vs a dozen in South Dakota. They’ve got a bias—after all, steering people to Florida is great for their bottom line. But hold up, does that mean we’re biased towards South Dakota, too? You bet we are! But there’s a big difference. At WorldPost.io, we dug deep into Florida, Texas, and South Dakota before we chose to set up shop in the Mount Rushmore State.

Let’s Talk About Florida’s Residency Roadblocks

1. Driver’s License Drama
   To get a Florida driver’s license, you need a real residential address—none of that PMB  business. In South Dakota, however, you don’t need to jump through these hoops. One residency affidavit ,PMB receipt, and a hotel stay, and you’re good to go.

2. Voting Woes
   Want to vote in Florida? You’ll need a valid Florida ID, and yes, that means you’ll also need that residential address again. And if you're hoping for e-ballots, Florida will double-check that ID.

3. W2 Employment
   No escaping the address requirements here either. If you’re working a W2 job, your employer needs a real residential address in Florida—no PMBs allowed. It's the same story in South Dakota, but that’s about where the similarities end.

4. Insurance: The Double Whammy
   First whammy: Insurance companies often catch and cancel policies tied to a PMB address, and trust me, you don’t want that cancellation notice coming while you’re out in the middle of nowhere.
   Second whammy: Florida insurance rates are skyrocketing. We've had clients compare prices, and the difference between Florida and South Dakota? Let’s just say it's like comparing a gourmet meal to fast food.

5. Vehicle Tax
   Florida’s vehicle tax is 6%, but that’s before you add on city and county fees. South Dakota? A flat 4%. If you’ve got a fancy RV, a tow-behind, and a scooter, that’s going to add up fast.

6. Title Registration Costs
   Title registration in Florida? Expect higher base fees. In South Dakota, it's refreshingly straightforward. Do the math, and you’ll see where the savings really stack up.

7. Virtual Mail and Address Costs
   Here’s where it gets sneaky. Florida has over 200 virtual mail services, and they know they can charge premium prices because demand is so high. Residential address services? They operate in the shadows with unlisted prices and hidden fees. Spoiler alert: they add up faster than you’d think.

The Big Exception: Property in Florida
If you own property in Florida or have friends or family who do well, then Florida might make sense. It’s hard to argue with free accommodations or a built-in address. But for everyone else? It’s not the friction-free solution it's cracked up to be.

The Verdict: South Dakota FTW

In the end, the champion, by a knockout, is Kristi “Sure Shot” Noem and South Dakota. Some might argue it's a closer call, but with Florida’s higher sales tax, skyrocketing insurance rates, and hidden fees, Kristi raises her hand for the win. South Dakota stands strong as the undefeated residency champion.