Small businesses in California continue to flee to more business friendly states like Texas - a trend that has been blamed on the Golden State's massive network of taxes and bureaucratic processes.
According to recent data released by the Tax Foundation, California is the sixth most tax-burdened state in the country. That figure, mixed with a report released Tuesday by the National Small Business Association should provide a glimpse into why small businesses continue to face trouble incorporating in California.
This year's Small Business Taxation Survey concludes that small firms nationwide are increasingly burdened by federal tax obligations during this time of the year. For example, 63 percent of respondents claimed the new W2 reporting provision, which requires businesses to declare their healthcare spending, will have a negative impact on their operations.
"One in three small business owners spends two full work weeks every year dealing with federal taxes, and the overwhelming majority (87 percent) are forced to pay an outside accountant or other tax return preparer," stated NSBA chair Larry Nannis. "The federal tax code is a massive resource drain for small businesses."
Tags : ca, incorporation news, small business management, taxes
Posted: Apr 12th, 2011