I know it seems like that on the outside, but taxes, rent, food are not all of it. As an employee, you get paid more to compensate you for that. If money is rea

I know it seems like that on the outside, but taxes, rent, food are not all of it. As an employee, you get paid more to compensate you for that. If money is really an issue, live in NJ, CT, or LI and commute in. My car is $300 a month + insurance + gas, eliminating all that and replacing it with $80 a month unlimited metro card saves me more than the change in cost of living. As for starting a business, there are three reasons why NYC is the place. VCs, enterprise, and employees. Our startup was 2 floors below the VC in the space previously occupied by del.icio.us. If we were in delaware, sure we wouldn't have taxes but we wouldn't have as much access to the VC. If you are selling to businesses, where will you be more efficient, the place where you can be at any company headquarters in 10 minutes, or in Delaware with a 3 hour+ car ride to get there (minor caveat with the banks in Wilmington but aside that). And if you want employees, NYC is a magnet for great talent and they are easy to find. Its not for everyone, but I highly object to people saying there is an exodus. I am more inclined now after the economic downturn to move into NYC than before. Rents are falling, engineering jobs are still paying well, the wall streeters have less bluster - it sounds great.