Small California Companies Have Two Choices: Sell or Stay Small

Because to grow a business in California is to be punished by the state for your success.  Such was the case with a local Orange County company that moved to Las Vegas last year.  The owner was commuting for awhile, but finally decided to move his family there too.  Here's why:

What happened? “Nov. 4,” Benton said.

That was the date of the last election in which Democrat Jerry Brown won the governorship, the Democrats increased their majority in the state legislature.

“It’s clear there’s not going to be any pro-business turn in the politics of California,” Benton said in a phone interview from North Las Vegas.

He sat down with his accountant and found out he would save $60,000 in business and personal taxes and workers comp insurance by moving everything to Nevada.

“California is lovely. It’s a fantastic place to live. It’s safe,” he said. “But providing a stable economic environment was more important than 72 (degrees) and sun year-round.” ...

“While I was barely hanging on in Lake Forest, my business is now flourishing in sunny Las Vegas, 42% increase over the previous year’s numbers,” he said.

“All the non-entrepreneurial folks say that I’m being greedy by not paying the taxes I should be paying in California but let me tell you what I’ve done. I’ve turned (the money I saved) back into my company with $100,000 in new equipment purchases and started two other ventures to employ additional people currently looking for work. That’s how greedy I am.” ...

“I could not have done what I am doing now in California,” he added. “I have run the numbers. Growth that I’ve enjoyed here in Vegas would have increased my tax burden significantly and I would have decided to just sell the company or stay small.”

And you can multiply this guy's story hundreds of times over all across that state.