CALIFORNIA MAKES BUSINESS SALES MORE DIFFICULT WITH RECENT POLICIES!
Written By: Mel Jones
As if business wasn't tough enough in the Golden State, then comes the ABC and the BOE to make it tougher. As the State of California tries to grab revenue from any and every possible source, they hinder the business of selling businesses.
Believe it or not, the ABC is now charging double fees. For example, if a license annual renewal is due July 1, 2012 and a business is schedule to close June 1, 2012, the ABC is requiring the Seller to pay for the annual fees for the license despite the fact the license fees are not due until July 1, 2012. This is in addition to the fees the buyer has alreaday paid to transfer the license. YES FOLKS, THIS IS PLAIN ROBBERY!
Next, the Board of Equalization (BOE) has stepped in to grab unwarranted revenues as well (which the word itself is a joke because it is a tax) by charging "advance sales tax" for three months of business. Yes, the BOE is now requiring buyers in many cases to pay three months of sales tax in advance! So if a restaurant has monthly revenue of $50,000, the BOE now requires $15,000 advance sales tax be paid before allowing escrow to close.
One of the main reasons the State of California is in trouble is because these state departments have adopted business unfriendly positions, positions the general public never hear about. I was born and raised in California and I loved the state. 50 years ago it was called the Golden State for a reason. But today, it has lost its gold and its compass by corrupt special interests, namely the state employees unions, and the liberal policies implemented by legislators to support those unions and the state employees obscene salaries, retirement benefits, and fat administration departments.
Change California, change before it is too late!
<< back to articles