While California struggles with a massive $28 billion deficit, it is also trying to stem the tide of businesses leaving the Golden State in search of less stringent regulatory climates.
The nation's second largest state economy, Texas, has been a popular destination for these businesses, but the reverse migration of one Houston small business recently caught the attention of the Orange County Register.
Drake Controls LLC recently relocated from Houston to Orange County, California, so as to consolidate its assets in its most active region. However, owner and president Frank Gore immediately admitted to the Register that, in California, "if something isn't working well, they don't eliminate it, they put another layer on top."
"First thing I noticed was that (the California handbook) was twice as thick," Gore added. "Then I noticed I needed to have a state-approved lactation policy. This is exactly what's wrong with California. In Texas, if that's needed, people just do it. What's tragic is some (California) legislator felt it was something that needed a law."
While the highly bureaucratic structure of the Golden State has been somewhat of an impediment to entrepreneurs looking to incorporate in California, Texas is also struggling with a massive budget crisis - a $25 billion shortfall to be precise.
Tags : business licenses & permits, ca, taxes, tx
Posted: Jan 10th, 2011