In Massachusetts a good place to open a small biz? (Boston: real estate, rent)

[Pear Martini]

I have heard the term taxachusetts, and I'm a bit worried about that!

I'm from MA and I want to move back at some point. I have a business plan and I would like to open it in perhaps one of the upscale areas just outside of Boston (maybe Brookline).

Is MA a good place to open a small business? Are the taxes too high on small businesses? I have been doing google searches and nothing comes up for Massachusetts and small businesses.

Thank you.

[xS☺B☺s]

Originally Posted by Pear Martini

I have heard the term taxachusetts, and I'm a bit worried about that!

I'm from MA and I want to move back at some point. I have a business plan and I would like to open it in perhaps one of the upscale areas just outside of Boston (maybe Brookline).

Is MA a good place to open a small business? Are the taxes too high on small businesses? I have been doing google searches and nothing comes up for Massachusetts and small businesses.

Thank you.

Taxation is MA is moderate, sometimes even dirt cheap. The problem with attempting a small business in places like Boston or Brookline is the cost of real estate. Rents are very high so you have to generate a lot of revenue just to afford the rent for the store.

[massnative71]

Originally Posted by Bostonian08

Taxation is MA is moderate, sometimes even dirt cheap.

What!!!!







Ok now that my heart rythm is back to normal, I think that the most difficult burden on small businesses is the property tax. They can be astronomical in a place like Brookline. Also if you plan on hiring help Massachusetts has probably the highest unemployment insurance rate in the nation, thanks to decades of socialistic rule. We also pay some of the highest health premiums in the country, thanks to Romneycare (I will not let the other party get away either) which is basically the precedent of Obamacare and it has been a disaster. We were promised it would bring costs under control and instead have seen rates increase faster than any other state. Sound familiar? We have seen the number of insurers in the state dwindle and doctors are getting harder and harder to lure into the state.

I haven't even mentioned utility costs.

[xS☺B☺s]

Originally Posted by massnative71

What!!!!







Ok now that my heart rythm is back to normal, I think that the most difficult burden on small businesses is the property tax. They can be astronomical in a place like Brookline. Also if you plan on hiring help Massachusetts has probably the highest unemployment insurance rate in the nation, thanks to decades of socialistic rule. We also pay some of the highest health premiums in the country, thanks to Romneycare (I will not let the other party get away either) which is basically the precedent of Obamacare and it has been a disaster. We were promised it would bring costs under control and instead have seen rates increase faster than any other state. Sound familiar? We have seen the number of insurers in the state dwindle and doctors are getting harder and harder to lure into the state.

I haven't even mentioned utility costs.

Pear, I owned property in Boston for 7 years and after exemptions, property tax was less than $500 per year. Utilities cost me $150 per month for gas heat in January, $50 for electricity. Boston goes out of its way to help the little guy. I have no doubt the city of Boston (not so sure about Brookline) has lots of programs to assist small business startups. Don't believe the above hype.

Anytime you hear the words in red strung together in a rant, you're listening to Rush Limbra program. Look into programs and crunch the numbers yourself.

[Pear Martini]

Thanks, Bostonian! I'm really trying to figure things out. I guess have a lot of research ahead of me

[Beachcomber4]

Income taxes will depend on how your company is structured S-Corp, Sole Proprietorship...etc. Meet with an accountant to see what is best for your particular business. Some things that might catch you by surprise in regard to cost: Vehicle Insurance, Worker's Comp Insurance, Unemployment Taxes (paid through payroll on the first 14K of income per employee), Liability Insurance, Property Insurance and oh yes, Health Insurance. I have seen our health insurance rate go up 37% in 2 years and each year, the plan offers less coverage. The insurance you choose must be approved by the state so most affordable plans (those under $1,000 per month for a family plan) do not provide enough coverage to be approved by the state as providing adequate coverage. There is a great program through the state called The Insurance Partnership that pays a portion of health insurance for employees. The caveat is there is an income guide and the employer has to pay 51% of each employees insurance to qualify. In regard to programs to assist, what I found is there are programs that will offer mentoring for start ups but little else. They are helpful but I believe your best bet is seek out professional organizations or networking groups to tap the knowledge base of others who do business in the region. Good luck with your venture.

[CaseyB]

Good info, Beachcomber.

As I understand it, if you have less than 10 employees you are not required to provide any insurance coverage.

[Beachcomber4]

You are correct about the health insurance Casey. Depending on the type of business the OP starts, that could be a consideration. The OP just has to evaluate that as well as see if other similar companies in the area offer health insurance and then gauge the job market to see if they can get good, committed qualified employees without offering a plan.

[fscprof]

The Duval Patrick Administration is trying to encourage small business in Massachusetts. I suggest going to the Commonwealth website and seeing what assistance you can find. I believe there are some special programs.

[Pear Martini]

Wow, thank you all so much.

I have decided I should probably finish my degree just to have something to fall back on, but opening my business in MA is one of my long term goals. I'd say within the next 5-7 years. I don't know if any of the info you folks gave me will be the same in 5 years, but I'm starting to build my business plan now.

I'm reading up on the dos and don't of owning a small biz, I want to do this right.