4 ms·

No, you get to do business in the 6th largest economy in the world. If you don't like it don't do any business here.

by neo4sure 9y ago

deleted 9y ago
[deleted]
homero 9y ago
There's a few businesses I wanted to try but paying $800 was absurd so I forgot it
- jjeaff 9y ago
  You do know you don't have to form an LLC to try out a business? Just got for it as a sole proprietorship and file an LLC later if it starts working.
  - homero 9y ago
    No you can get sued pretty quick
    - jjeaff 8y ago
      And when you are sued, your one man, tiny operation LLC will offer essentially zero protection. Unless you are selling parachutes to base jumpers, you'll be fine.
exclusiv 9y ago
That type of thinking has pushed entrepreneurs and businesses to move to more friendly and competitive states. It's simply a bad policy to start aspiring small businesses in debt. $800 isn't much to many of us on here but it is for a lot of people that want to be entrepreneurs in different fields from different backgrounds. Most businesses have other startup costs as well. California already has the highest state income taxes. The privilege of doing business here is already accounted for. The franchise tax fee is just a bad policy and it's regressive.
- dragonwriter 9y ago
  > $800 isn't much to many of us on here but it is for a lot of people that want to be entrepreneurs in different fields from different backgrounds. And, so, they start businesses as sole proprietorships, or general or limited partnerships, and reorganize as LLCs or corporations once they've proven the idea. They are exposed to more (and the public exposed to less) risk of unmet business liability, but they can still run a business. We always see entrpreneurs praised for taking risk, why are we hearing so much complaint that California charges for the privilege of offloading risk on to the public?
- JKCalhoun 9y ago
  > That type of thinking has pushed entrepreneurs and businesses to move to more friendly and competitive states. Or simply get an LLC from another state. Seems like there are states (Utah?) where there is no annual fee/tax. I believe you only need a CA LLC if you hire employees in CA.
  - mark212 9y ago
    Not quite that simple but you’re right that if you can be physically present outside the state and do business for California clients then you’re probably not going to pay the franchise tax. But no state allows you to register any entity for free. Lowest I’ve seen is South Dakota at $50 per year with no other tax on receipts.
    - jjeaff 9y ago
      ND is $50 to renew, but $150 filing fee. Wyoming is $100 filing fee and also $50 to renew.
- inferiorhuman 9y ago
  > California already has the highest state income taxes. California has a pretty progressive income tax. It's the highest at the top income bracket (> $1 mil is taxed at around 13%), but it's significantly lower at the low end than many other states including Alabama, Arizona, Connecticut, Kansas, Maine, Maryland, Minnesota, New York, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin, and DC.
stickfigure 9y ago
If you don't like it don't do any business here. Ask Detroit how that worked out for them.
- neo4sure 9y ago
  Seems to me like all the states where its so easy to do businesses there are no businesses. Maybe that's why they are making it so easy because no one comes there. You are complaining about CA but forget why it grew in the first place. CA governments have been leading the way for many years on what is required to be done for the economy.

No, you get to do business in the 6th largest economy in the world. If you don't like it don't do any business here.

deleted 9y ago

[deleted]

homero 9y ago

There's a few businesses I wanted to try but paying $800 was absurd so I forgot it

jjeaff 9y ago
You do know you don't have to form an LLC to try out a business? Just got for it as a sole proprietorship and file an LLC later if it starts working.
- homero 9y ago
  No you can get sued pretty quick
  - jjeaff 8y ago
    And when you are sued, your one man, tiny operation LLC will offer essentially zero protection. Unless you are selling parachutes to base jumpers, you'll be fine.

exclusiv 9y ago

That type of thinking has pushed entrepreneurs and businesses to move to more friendly and competitive states. It's simply a bad policy to start aspiring small businesses in debt. $800 isn't much to many of us on here but it is for a lot of people that want to be entrepreneurs in different fields from different backgrounds. Most businesses have other startup costs as well. California already has the highest state income taxes. The privilege of doing business here is already accounted for. The franchise tax fee is just a bad policy and it's regressive.

dragonwriter 9y ago
> $800 isn't much to many of us on here but it is for a lot of people that want to be entrepreneurs in different fields from different backgrounds. And, so, they start businesses as sole proprietorships, or general or limited partnerships, and reorganize as LLCs or corporations once they've proven the idea. They are exposed to more (and the public exposed to less) risk of unmet business liability, but they can still run a business. We always see entrpreneurs praised for taking risk, why are we hearing so much complaint that California charges for the privilege of offloading risk on to the public?
JKCalhoun 9y ago
> That type of thinking has pushed entrepreneurs and businesses to move to more friendly and competitive states. Or simply get an LLC from another state. Seems like there are states (Utah?) where there is no annual fee/tax. I believe you only need a CA LLC if you hire employees in CA.
- mark212 9y ago
  Not quite that simple but you’re right that if you can be physically present outside the state and do business for California clients then you’re probably not going to pay the franchise tax. But no state allows you to register any entity for free. Lowest I’ve seen is South Dakota at $50 per year with no other tax on receipts.
  - jjeaff 9y ago
    ND is $50 to renew, but $150 filing fee. Wyoming is $100 filing fee and also $50 to renew.
inferiorhuman 9y ago
> California already has the highest state income taxes. California has a pretty progressive income tax. It's the highest at the top income bracket (> $1 mil is taxed at around 13%), but it's significantly lower at the low end than many other states including Alabama, Arizona, Connecticut, Kansas, Maine, Maryland, Minnesota, New York, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin, and DC.

stickfigure 9y ago

If you don't like it don't do any business here. Ask Detroit how that worked out for them.

neo4sure 9y ago
Seems to me like all the states where its so easy to do businesses there are no businesses. Maybe that's why they are making it so easy because no one comes there. You are complaining about CA but forget why it grew in the first place. CA governments have been leading the way for many years on what is required to be done for the economy.