CA near bottom for small-business friendliness

[Saddle Bronc 124]

http://jan.freedomblogging.com/2008/12/10/...endliness/5732/

California 49th in small-business friendliness

2008/12/10 Jan Norman

California is one of the worst states in which to own a small business, according to the 13th annual ranking by the Small Business & Entrepreneurship Council in Washington D.C.

New Jersey is the only state with a lower ranking in the report called “Small Business Survival Index.” The District of Columbia, though not a state, perennially holds last place in the rankings, which are based on 36 tax and policy issues that impact businesses.

California also ranked 49th in the 2007 report.

On several criteria, California is dead last:

• Personal income tax is highest in the nation
• Individual capital gains tax is also highest
• Gasoline and diesel taxes are highest

California is also near the bottom (which means our costs are among the highest) on:

• Corporate income tax and corporate capital gains taxes (42nd and 43rd)
• Workers compensation insurance costs (46th)
• Per capital spending by state and local governments (47th)
• Trend in state and local government spending (41st)
• Condition and performance of highways and roads (44th)

California ranks high (meaning costs are lower) in a few categories:

• Unemployment tax rates (1st) --WFT
• Electricity costs (4th)
• Number of government employees per 100 residents (7th)
• Property taxes (14th)

“The U.S. economy is in a serious downturn, and the outlook for a robust recovery seems remote,” said SBE Council Chief Economist Raymond J. Keating, who authored the study. “That means state and local policymakers face some very difficult decisions, especially on budget matters. Depending on the policy course that state lawmakers choose, they can either make the economic situation in their own state better or far worse.

“Quite often, policies have unintended consequences for small businesses when they raise costs, create uncertainty and diminish incentives for starting up, investing in and building a business.”

The index is the most comprehensive measure of the states in terms of the environment for small businesses from a government-cost perspective.

The top-ranked states are:

1. South Dakota
2. Nevada
3. Wyoming
4. Florida
5. Washington

Joining California at the bottom are:

47. Rhode Island

48. Maine

49. California

50. New Jersey

51. District of Columbia

Full Report

[Otto 83]

Not surprising - CA is so difficult (and expensive) to do business in (large or small) that unless you have to, it's best to avoid the state entirely.

[YuAndDan 153]

Thanks for sharing, I have been looking to relocate for a while, and California has always been OFF my list of places to move because it is worse than where I already live for (Property, and income tax) also housing is RIDICULOUSLY expensive.

Nice to see Nevada up there, one of the states I have been considering.

[SpiritAlight 1]

BUGGERS!

And I want to live there.

I had looked up how much it costs to register and LLC in various states.

California was $800/yr!!!

Illinois was pretty bad too.

Some states it costs only $50.

Such differences...

[YuAndDan 153]

BUGGERS!

And I want to live there.

I had looked up how much it costs to register and LLC in various states.

California was $800/yr!!!

Illinois was pretty bad too.

Some states it costs only $50.

Such differences...

One of the reasons you always hear radio commercials about Incorporating in Nevada.

[Ilya R. 0]

Jersey still has the biggest number business opening and closing

haha