Entrepreneurs looking to launch a green tech LLC in California are in the right place. The state leads not only the U.S. but the world in alternative energy startups and entrepreneurial ventures. However, a number of initiatives and competitions are beginning to pose a threat to the Golden State's dominance.
According to a report by research firm Clean Edge, China's green energy industry has lower labor costs, higher productivity and stronger incentives. Germany, Denmark and Mexico are also moving ahead with their own blossoming industries and have proven cheaper than California, with its heavy taxes.
On top of competition from other regions, a new initiative, Proposition 23, will face California's voters next month. If passed, the law will suspend an existing California law requiring state utilities to obtain a third of their energy from renewable sources by 2020 until state unemployment drops to 5.5 percent for at least a year.
Opponents argue that the initiative will divert billions of dollars in startup investments, thereby worsening the unemployment problem and all but halting green energy technologies.
Even so, many California business owners believe the state is already a regulatory nightmare and that further provisions such as Proposition 23 are just more fuel for the flame. "I don't see a real benefit to staying here," said Arnold Klann, CEO of BlueFire Renewables in Irvine to the LA Times. "I'm dead serious - all the good boils down to the weather."
Tags : business licenses & permits, ca, incorporation news, taxes
Posted: Oct 8th, 2010