Per phone conversation this morning:

 

Sir,

 

Every business in California is trying to escape paying unreasonably high workers compensation,

State and Federal unemployment and Social Security Taxes by classifying workers as independent

contractor. All together these taxes and fees up to 30% of every dollar they are paying as wages! In

today economy it is a business killers.

It is very risky due to the growing IRS and EDD crackdown on this practice stiff penalties. Especially

in trucking and construction industries. But businesses does not have a choice.

 

They (including large businesses) created a new tactic: they are pushing employees/independent

contractors to register their own corporations. This way it is no additional taxes and penalties in case

of audit.

 

On September 15, 2008 Secretary of State dramatically raise registration fees and waiting time.

 

Before 09/15/2008 it was $15 over counter fee and waiting time 40-60 minutes.

After that date it is $750 for 8 hours processing, $500 for 4 hours, $350 for 24 hours and $15 for

processing time of  3-7 days (as originally declared). My own experience is that now for $15 you have

to wait 20-30 days.

People losing time, jobs, frustrated and very anger. Typical California business climate!

 

Beside that staff makes mistakes and reject filing.

 

In my opinion Secretary of State extort money (under pretence that now Department has less

employees) and deepen the economic crisis. California business registration fees at State level

now is highest in the nation. California again shows brainless and indifference to businesses/

entrepreneurs.

 

Sincerely,

 

Edward Golod

 

916/485-1600