This is a highly relevant point. The more difficult it is to learn about and comply with regulations, the fewer businesses will attempt to do so. In some cases

This is a highly relevant point. The more difficult it is to learn about and comply with regulations, the fewer businesses will attempt to do so. In some cases, business simply ignore regulations that that are obscure or inefficient to comply with; this leads to corruption and/or shadow economies. In more cases, business is simply discouraged and doesn’t grow, or just doesn’t start at all. The messy patchwork is city, (sometimes) county and state licensing and taxation framework in the US is a huge drag on small business. I am not arguing for no regulation, licensing, or taxation, only that these entities recognize that requiring businesses to file paper tax returns every quarter, even if they have done zero business in a given city is a significant hindrance to business activity.