[gamblor956]

In California you can register a business in literally minutes yourself (https://www.sos.ca.gov/business-programs/business-entities/f...).

If you paid a third party to do so...that's on you. You weren't required to use a third party agent for service of (legal) process. Moreover, if you decided to register in a second state (Delaware), that's on you as well. If you don't want to pay taxes for your business in the places where it does business...then why did you register in multiple states in the first place?

I also have to file physical paperwork with my local city (despite no physical presence) and pay yet more fees.

This makes no sense. How do you not have a physical presence in your "local" city. The physical presence is a pretty key part of the "local" bit. (Note that "physical presence" includes employees (and employee-owners) not just dedicated offices or facilities.)

Basically, you're complaining entirely about self-inflicted problems.

[ghomrassen]

Registering is one part of a thousand part process. Ask a small business owner, other than geography, would you rather operate in California or Texas. 9 out of 10 will say Texas.

[gamblor956]

I have asked that question, and 9 out of 10 said they would prefer California. Bigger market, better employees, better access to materials and cheaper, and better access to international markets.

Also, when I was still at a firm providing tax services to companies large and small (including a number of YC companies), I had more than a dozen clients move to CA from TX, and only one company move from CA to TX. They moved because Texas simply wasn't a viable place to do business unless you're in oil or energy (and the one client that moved there was in energy).

Texas is where companies go when they aren't strong enough to survive real competition.