LA = Entrepreneurial City (Los Angeles, London: real estate, how much, income)

[newjitty]

so besides the obvious as being the entertainment city, LA seems to get a rep as a very, very entrepreneurial city. Why is this so?

based out of NYC, I can see how entrepreneurs might have it tougher back east (even after post-financial apocalypse) in comparison to here. Higher NYC rents sq/ft, higher RE tax, generally more red tape to zoning, local bureaucracy (city/town level), etc..

Besides the general 'everyone leaves you in your bubble' mentality here in LA, since it's much more spread out, are there actual tax/legal implications that make it much more attractive than other parts of the nation to start your own professional service shop? Any accountants out there? Thanks.

[Island_OnThe_Land]

The RED TAPE in LA & Calif (in general) is no walk in the park. When it comes to zoning/development it RANKS as the toughest in the nation. Trust me, I have worked in development/urban planning.

CEQA (The California Environmental Quality Act) was passed in 1971 and applies to all local jurisdications considering development projects. By far, the toughest environmental review law of any in the nation. It has served as a model for many states over the years looking to adopt more strict environmental laws. Property taxes are capped here, but the state's income tax is among the most progressive in the nation.

To your larger point, the US census reports that LA has more "foreign born" residents than any other large US city (NYC included). The immigrant population is VERY entrepreurial (from small businesses to international trade to fashion to restaurants to real estate, etc.). '

By extension, LA's position on the Pacific Rim makes its port the LARGEST trading center in the USA. Again, the entrepreneurial opportunites this presents are vast. Granted the current slowdown is not helping. But I think you get my point.

[motoman]

The reason it might be considered so entrepreneurial is simply that there are so many damned people here. I'm not sure about LA by itself, but the State of California alone is the 8th largest economy in the world. That means lots of opportunity.

[EscapeCalifornia]

I wonder how much of LA's entrepreneurial activity happens off the books and under the radar due in part to the heavy tax and regulatory burden.

[motoman]

Originally Posted by EscapeCalifornia

I wonder how much of LA's entrepreneurial activity happens off the books and under the radar due in part to the heavy tax and regulatory burden.

I would guess quite a bit. The higher the tax burden, the more time and effort people will take to get out of paying.

[impala666]

Originally Posted by EscapeCalifornia

I wonder how much of LA's entrepreneurial activity happens off the books and under the radar due in part to the heavy tax and regulatory burden.

People in highly paid professions just earn much more money out here, the taxes suck but the weather is great.
In terms of net income I now earn ten times more than I did back in London and I`ve only been here two years.
Tax fraud is not worth the sleepless nights too much to loose, just pay up and have another drink.

[EscapeCalifornia]

Originally Posted by impala666

People in highly paid professions just earn much more money out here, the taxes suck but the weather is great.
In terms of net income I now earn ten times more than I did back in London and I`ve only been here two years.
Tax fraud is not worth the sleepless nights too much to loose, just pay up and have another drink.

You're the exception to the rule. 99% of jobs don't pay 10x as much in LA as anywhere else. Most jobs pay a little more, then see the difference get eaten up by taxes and cost of living several times over.

[motoman]

Originally Posted by EscapeCalifornia

You're the exception to the rule. 99% of jobs don't pay 10x as much in LA as anywhere else. Most jobs pay a little more, then see the difference get eaten up by taxes and cost of living several times over.

Correct. When I moved from Dallas to LA, I found that jobs in LA paid maybe 10% more than in Dallas. That covers the higher income taxes in LA, but nothing else.

[user_id]

Los Angeles or California in general is not a good place to do business anymore. There are a lot of educated people in the area and that is perhaps the biggest asset.

Regulation and tax wise its horrible....oh and its going to get worse!

A lot of the self-employed people I know do a lot of things under the table and will give discounts if you pay in cash. So long as the cash doesn't see your bank account, its pretty impossible for the state or IRS to do anything.

[impala666]

Originally Posted by EscapeCalifornia

You're the exception to the rule. 99% of jobs don't pay 10x as much in LA as anywhere else. Most jobs pay a little more, then see the difference get eaten up by taxes and cost of living several times over.

Ask people like Hugh Laurie more work equates to more money in the bank.
If you work for a salary then you are right.