[juandazapata]

That’s ~$67/mo to stay in business. I don’t see how this can be considered a horrible thing.

[ashconnor]

In the UK I paid a £13 a year to file accounts online to keep my dormant company running.

[mdorazio]

When you're a very small business losing money the first few years of operating and California sticks you with an $800 bill on top of local taxes that are also levied regardless of income (business personal property), it's a giant slap in the face that makes you want to move your business to pretty much any other state.

[athms]

Then move. But remember, if you do business in California, you must still pay the franchise fee if you have a company that is NOT a sole proprietor or general partnership. Incorporating in another state will not save you, you must register with Secretary of State as a foreign entity.

[mdorazio]

I closed my business last year and was about to move prior to COVID shutting everything down. California tax policies are the #1 reason I'm leaving.

[ThisIsTheWay]

Not quite. It's $67/month to just be able to try to stay in business. What benefit does that tax provide to start-ups, and why isn't it a function of the product the business produces instead of the flat rate that's imposed?

[s1artibartfast]

Probably not much for a brick and mortar store or a software consultant, but think about the vendors selling pizza or hotdogs on the street.

Alternatively, if you are involved in a few startups with losses, it can add up really fast.