Moylan's bill reducing LLC fee vetoed by governor

Senator Jim Moylan's Bill 133 didn't make the cut, despite the governor passing several bills into public law. Last Friday Governor Lou Leon Guerrero vetoed Bill 133, which proposed a reduction in the initial fee for creating a limited liability company.

In a press release sent by the author of the bill, Senator Jim Moylan, he expressed that the intent of the bill was to "encourage the growth of small business entrepreneurship, by allowing the costs for the business structure to be more reasonable."

"It's a thousand dollars for that initial filing fee whereas in the nation, nationwide on the average, I think it's around a $100 or $150 or so. So, we proposed that bill to reduce it, from $1,000, reduce it 75 percent to $250. That bill passed, made its way up to Adelup, but, unfortunately that bill was vetoed by the Governor," explained the senator.

In the veto message from the Governor, she stated that the legislation would impact the revenue stream for the Department of Revenue and Taxation. And Senator Moylan's response?

"I can understand that but I also foresee, possibly, an increase in revenue in allowing our entrepreneurs to have that opportunity for a greater protection and by passing this, should create therefore, more business. Hire another person or buy another piece of equipment or even allow that person to get into business, and we're creating the opportunity to get back to work, that's what this bill could have done," he said.

Moylan small businesses are struggling as it is, and that the bill could drive business by not weighing down potential businesses with government fees and even after the veto, Moylan says it's not over yet.

"Allow those that are willing to take a business and move it up, or to start up a new business, to not have to pay so much out of their pocket, just on fees and fees to the Government. It's Hard enough just trying to get what you need to start your business off," he said.

"There's a possibility that I can move this measure the Veto of the Governor, on to the floor for possible override. And if that doesn't work out we can also look at the 36th Guam Legislature to re-introduce this and get it done."

With small businesses struggling to keep the lights on, Moylan's hopes are that the reduction in fees would encourage more businesses, more jobs, and more opportunity to jump start a vital sector of our economy.

Moylan said, "I think it's a good cause, I understand the Governor's Concern, but I really believe that if we help small business more, then we would see the returns, revenues and jobs and then they'll be paying their tax, instead of excessive fees which I feel, should not be the case, especially now during this pandemic. Let's help out the Small Business and reduce their cost on government fees."