Senators debate proposal to slash business licensing fee

Advocates describe it as a small step forward in what will be a long road back to economic recovery. Senators today opened the November session with debate over a measure to slash a business licensing fee to help motivate entrepreneurs to open much-needed new businesses.

Author Senator Jim Moylan says the preferred structure for small businesses is the limited liability corporation, because of the financial protections it provides to owners. The initial filing fees for limited liability corporations across the U.S. range from as low as $40 to as high as $500. But on Guam, its $1,000.

"This legislation is simple," the veteran policymaker said. "It is a business-friendly measure. It's an opportunity for Guam to attract more LLC filings, and basically if we can create reasonable filing fees more LLCs will be filed on the island."

 But Senator Sabina Perez said she had reservations about who it would really help, questioning, "They can be some of the largest corporations or businesses such as the Enrons of the world. I think it's important to note the fact that LLCs have somehow become conflated with small businesses and I do understand the need to increase the economic activities of our island, but I think we should take measured approaches and in doing. So for me, it's not very clear what the impacts of this would be."

"Our small businesses are our heroes of our economy...they are the job creators who drive the economy and make a huge contribution to our island's prosperity. Our duty is to help prosper these small businesses. To generate the taxes that we desperately need to support our government services. Especially during this time of COVID when we're wondering how many of these small businesses still want to open their doors."

The bill was successfully passed on to the third reading file for voting before the end of session.