|As you can see, we're a big money operation.|
Since I was a kid, I've been hearing complaints from Republicans and some Democrats that policies in this state hurt small business. I generally didn't care, as I wasn't a business owner, and thought that it would only benefit the rich. Now though, as I look into starting a business, I find my state has higher rents and other start-up costs than almost anywhere. Many of the start-up costs, particularly rents, are outside government control. I understand that - it's valuable real estate. But fees like the LLC fee just add to the overwhelming cost of starting a small business.
I'm not advocating that Massachusetts adopt Colorado's $10 annual fee, but perhaps the Bay State should consider a tiered approach more like New York's. There, if I understand it correctly, LLCs that make less than $100,000 annually pay only a $25 filing fee (this doesn't take taxes into account).
I certainly support moderate-to-high taxes on business profits, but doesn't it make more fiscal sense for the state to encourage businesses with lower start-up costs and then get the money out of them by taxing profits made? To a big company, $500 doesn't seem like much, but to folks trying to scratch a few grand together to pursue a letterpress business on the side, $500 as an annual cost is frankly a huge deterrent.
What do readers think? I don't know a lot about business law, so maybe I'm not seeing how this is reasonable.