an almost 5 percent increase in their lease costs if they re-signed at their Auburn location in November 2020 . After some research , she found the company ’ s per-square-foot costs were 3 1 / 2 times what they could be paying at a facility in Wilmington , North Carolina . In January 2021 , the company moved there .
The savings weren ’ t just on rent . The company paid an almost 9 percent corporate tax in California but pays 6 percent in North Carolina , and North Carolina gives businesses a credit for what they pay in federal taxes , which California doesn ’ t — overall they ’ re saving about 13 percent in state taxes on gross revenue after the move , she says . Labor laws were a factor too : California ’ s rules on minimum salary levels for employees to be considered exempt were forcing the company to raise salaries for some technical positions by 12 to 14 percent , which wasn ’ t sustainable , she says .
“ We didn ’ t make the decision lightly ,” she says of the move , which pulled 47 jobs out of the region . “ But we ’ re glad that we did it when we did it .”
And there are smaller fees that discourage companies . Steve Harari , who runs the business consultancy Narrow Path Advisors , moved in July 2020 from Grass Valley to northwestern Arkansas . Incorporating in California costs about $ 200 , plus an annual $ 800 fee to keep current . In Arkansas it ’ s $ 45 to $ 50 , and he pays no annual fee , he says .
Plumas Bank President and CEO Andrew Ryback says Nevada ’ s less restrictive business climate was one consideration in his bank moving its headquarters from Quincy to Reno last year . The state ’ s business-friendly policies contribute to its strong economic growth , which in turn gave Plumas the chance to enter a growing market with few community banks , he says . He ’ s quick to add that California ’ s business climate “ was a contributing factor but in no way a deciding one .” No employees were affected by the move , and the bank “ will always support our foundational markets in northeastern California ,” he wrote in an email .
It ’ s not just the business climate
Like people , companies move for lots of reasons . Todd Mitchell is chief financial officer at RiceBran Technologies , which uses a patented process to stabilize fresh rice bran . His company moved its headquarters from West Sacramento to just north of Houston in 2018 , though it still has a few facilities in West Sacramento . Primarily they wanted to be closer to their producers and customers in the Mississippi Delta , particularly with logistics costs skyrocketing , he says . Texas is also just cheaper : The company saves money on space for its corporate headquarters , and wage rates are lower while
Roger Akers golfing to benefit the American Cancer Society
The American Cancer Society is the largest nonprofit funder of cancer research in the US outside of the federal government , investing more than $ 5 billion over 75 years .
The Villara Capital Cup adapts the historic Ryder Cup format to promote community pride , healthy competition , and raise money for the Sacramento region ’ s most deserving charities . The winning team ' s designated charities share a prize fund of $ 100,000 !
Support Roger Akers , donate here : https :// capitalcup . mightycause . com www . cancer . org
August 2022 | comstocksmag . com 49