Tennessee budget plans might encourage business incorporation
As the national economy recovers, Tennessee is still in a state of downturn. The Daily Timesreports that state revenue is about $196 million below projections for the current budget year.
This deficit is partly responsible for delaying budget plans, but it may also lead to a measure that could be good for those looking to start a business – not even necessarily in Tennessee. State Senator Doug Overbey is proposing a bill that will increase the state’s venture capital fund.
Under the proposed plan, investments will be able to be made in smaller startup businesses in and outside of Tennessee. For small startups out of state, entrepreneurs will have to move a headquarters and 60 percent of their workforce to Tennessee.
While this could potentially require some shifting, owners can start a corporation in their neighboring home states and still benefit from Tennessee investment dollars. This is good for nearby business owners and the state as it will still bring commerce to Tennessee soil.
Overbey says promoting investment is a top priority for the budget. “We want to put out the welcome sign for businesses in Tennessee,” he told the source.
Increasing small businesses within the state might be a good way to boost the local economy. According to a report from the Small Business Administration, small businesses have generated 64 percent of net new jobs in the past 15 years.