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Businesses Need to Consider States' Regulatory Frameworks
Published on May 31, 2011
Check out 'Businesses Need to Consider States' Regulatory Frameworks' at 'Time to Start Up,' the small business blog by BizFilings.
Entrepreneurs forming a company in California are likely experts on the state's myriad regulatory hurdles and burdensome tax structures. The web of red tape is such that a recent Small Business California study found 21 percent of small business owners in the state do not expect to be operating in the state three years from now.
While legislators in the Golden State have begun taking steps to make their state more friendly for businesses, Texas may be becoming the country's new hub of business innovation.
"What's driving the business exodus from California and the job growth in Texas? Business owners and analysts boil the problem - or the solution = down to one word: government," writes Jackie Hicken for Deseret News.
Texas has no statewide property or income tax and a cultural aversion to taxes. These conditions have helped the state emerge strongly from the recession and boast a below average unemployment rate. Standard & Poor's has even pointed to the Lone Star State as likely to recover quickest from the downturn.
But for all the differences, small businesses and entrepreneurs should weigh what sort of environment they are looking for, study up on their target locations and determine what area is best for them.