Regular readers know that I listen to the podcast of American Public Radio’s Marketplace show. Last week, they had a singer, Jill Sobule, on who gave up on the big record companies and asked her fans to fund her next album.
It took just 6 weeks to raise $75K and off she went. However, she mentioned how difficult it is to set up small corporations- to split potential profits:
I mean originally what I wanted to do is figure out a way where everyone could have stocks in my PinkoRecords.com, but the way the laws are here for such a small business, it made it incredibly difficult. But next time I still want to figure how to do that.
Given the financial meltdown of so many “Big Corporations” that were “too big to fail”- it makes me wonder, are all the government paperwork, the tax rules, the “regulations” really needed? In forming a non-profit for our Veterans Business Group and the for-profit “South Park Social Capital” we had to hire lawyers, create tax IDs and set up complex articles of incorporation for a simple small business.
Could there be an easier way? Small business is what creates jobs, and while the country is facing record unemployment, maybe we need to take down the barriers to starting up small companies?
Simplification of processes is a sound business strategy- simplification of government regulation could be a powerful way to jump-start our economy.
Call it corporation EZ, and watch the economy grow.