Latest news with #businessrelocation
Associated Press
2 days ago
- Business
- Associated Press
In-N-Out Burger CEO to join the list of high-profile business figures to leave California
LOS ANGELES (AP) — As California's much-loved hamburger chain In-N-Out Burger expands across the country into Tennessee, billionaire owner and CEO Lynsi Snyder has announced she and her family are going with it and heading east, too. 'There are a lot of great things about California, but raising a family is not easy here,' Snyder announced last week on the 'Relatable' podcast, hosted by conservative commentator Allie Beth Stuckey. 'Doing business is not easy here.' Snyder said the corporate headquarters will remain in California. The company announced in 2023 that it planned to open a corporate office in Tennessee, along with restaurants in and around Nashville. With her move to Tennessee, Snyder becomes the latest high-profile business figure to decamp a state known for its sunshine but also heavy taxes and regulation, progressive politics and a punishing cost of living. Other departures have included Charles Schwab and Chevron, which cited regulatory issues, taxes and high operating costs, and Elon Musk announced last year he was moving the headquarters of SpaceX and social media company X to Texas. He said at the time that a California law barring school districts from requiring staff to notify parents of their child's gender identification change was the 'final straw.' Snyder is the granddaughter of the chain's founder, Harry Snyder, who opened his first drive-thru hamburger stand in Southern California in 1948. The California cachet has long been part of the brand's identity. According to its website, In-N-Out Burger has over 400 locations across eight states — California, Nevada, Arizona, Utah, Texas, Oregon, Colorado and Idaho. In a post on the social media platform X, Tennessee Gov. Bill Lee said, 'From the first time I met Lynsi and her team, we both knew (the chain) would thrive in the Volunteer State.'
Forbes
3 days ago
- Business
- Forbes
3 Key Tax Benefits For In-N-Out's Headquarters Move To Tennessee
Los Angeles, CA, USA - May 2, 2022: Exterior of an IN-N-OUT BURGER restaurant on Sunset Boulevard in ... More Los Angeles, CA. In a stunning announcement, In-N-Out CEO Lynsi Snyder is relocating the California-based burger chain to Tennessee. This move follows fellow fast food chain Kentucky Fried Chicken in relocating its headquarters from its hallmark or foundational location to a more business-friendly state. According to Fortune, Snyder broadly references the business environment that In-N-Out faced in California as tricky to navigate. On the flip side, Forbes ranks Tennessee as the 7th most business-friendly state in the U.S. Despite no mention of taxes in Snyder's interview, she and her company stand to benefit financially from relocating to a more tax-advantaged location. This article highlights three key tax benefits of In-N-Out's headquarters move to Tennessee. (1) Corporate Income Taxes In 2025, the Tax Foundation shows that California taxes corporations among the highest in all fifty states, with a tax rate of 8.84%. Meanwhile, Tennessee levies a much more moderate 6.5% tax rate on corporations. While the individual locations will continue to accrue revenues and pay taxes in their respective locations (i.e., In-N-Out locations in California will still pay California corporate income taxes), profits can often be funneled toward the corporate entity via operational strategic shifts (such as cost-sharing arrangements or transfer pricing). Thus, it is likely that In-N-Out will be able to benefit from paying nearly 2% less in taxes at the corporate level. (2) Individual Income Taxes Perhaps even more prominent in the mind of Snyder and her family-run business is the significantly lower individual income tax rates that she will face. In fact, it cannot get more extreme of a drop off than facing California's 13.3% individual income tax rate (highest in the U.S.) to Tennessee, which is one of nine states that does not levy an individual income tax. With Snyder posting an estimated $7.3 billion net worth, according to Forbes, it can be reasonably expected that she is pulling in tens of millions of dollars annually. Going from having to pay 13.3% of this income to California to 0% to Tennessee likely reflects millions of dollars saved each year in tax payments. However, the individual income tax benefits extend beyond those of Snyder. Corporate headquarters typically houses many members of the executive branch, as well as numerous high-ranking employees within the company. If these employees collectively have a lower tax burden due to not paying income taxes in Tennessee, then many important members of the company will stand to gain significant tax benefits. (3) Investor-Level Taxes In addition to the difference in individual income tax rates, California and Tennessee both offer the same state tax rates on investor level taxes, such as capital gains tax and dividends tax. Capital gains tax arises from income earned from investing, not unlike the ownership of a fast-food chain like In-N-Out. As the initial basis of the In-N-Out shares is likely significantly smaller than what they are worth today, Snyder is sitting on a massive potential tax bill if and when she disposes of the shares. F As of now, Snyder has not indicated an interest in selling any part of her ownership stake in In-N-Out. However, Snyder reportedly owns 97% of the company, according to Entrepreneur. Thus, many shares can be parted with while still maintaining significant control over the company. If Snyder were to do this while being a California resident, she would owe 20% in Federal capital gains taxes plus the 13.3% California capital gains tax. For instance, if she sold enough to generate a $10,000,000 profit, her total capital gains tax bill would be $3,330,000. Meanwhile, if she had the same transaction but as a Tennessee resident, then her tax bill would be 40% less due to not having to pay state-level capital gains taxes. Even beyond the selling of ownership, In-N-Out potentially compensates Snyder by issuing her dividends. When this happens in Tennessee, Snyder will not pay any additional tax liabilities in the state, as Tennessee does not levy a dividend tax. Meanwhile, California's dividend tax rate is the same as its individual income tax rate (13.3%). Some of the potential tax benefits highlighted above face the important caveat that In-N-Out is a privately held company. Consequently, the company does not disclose its financial statements publicly, providing the general public with limited tax insights into their potential tax benefits from moving from California to Tennessee. For example, it is unknown exactly how profitable In-N-Out is each year. Another example is that In-N-Out does not disclose how much it pays to it's executives or how much dividends it issues each year. Furthermore, Snyder has not expressed any intention of selling ownership interest in the company. However, Amazon founder Jeff Bezos made a similar move to Florida without announcing intentions of selling shares in his company. As reported by The Guardian, the subsequent sale of his shares while being a Florida resident saved him $600 million in capital gains taxes. Lastly, it is important to highlight that Snyder is not making the most tax-savvy move on the table. In particular, In-N-Out could just as easily follow Kentucky Fried Chicken and relocate its headquarters to Texas, where it already has 43 locations. In doing so, the company would face a 0% corporate income tax rate, rather than the 6.5% rate in Tennessee. Thus, Snyder appears to be betting on both the business-friendliness of Tennessee and the potential for expansion on the East Coast.
Yahoo
5 days ago
- Business
- Yahoo
In-N-Out's Billionaire Boss Is Moving the Business Out of California — Here's Why
In-N-Out's Billionaire Boss Is Moving the Business Out of California — Here's Why originally appeared on Parade. Lynsi Snyder, the granddaughter of In-N-Out founders Harry and Esther Snyder, announced that she — and the company's headquarters — are leaving California for Tennessee. 'We're building an office in Franklin, so I'm actually moving out there,' Snyder said on Friday's episode of the Relatable podcast with Allie Beth Stuckey. It marked the first time Snyder publicly confirmed her decision to relocate to Tennessee with her family. 'There's a lot of great things about California, but raising a family is not easy here,' she explained. 'Doing business is not easy here.' Snyder, 43, has served as president of In-N-Out since 2010, guiding the company's steady expansion across the Southwest and now into the South. The next chapter begins in Franklin, just outside Nashville, where the company broke ground on a 100,000-square-foot office in 2024. The first restaurants in the state are slated to open in 2026. Still, for a company so deeply associated with California's palm trees and car culture, the president's departure from the state isn't going unnoticed. 'It will be wonderful having an office out there, growing out there and being able to have the family and other people's families out there,' Snyder said. In recent years, the company faced heightened regulatory scrutiny during the pandemic, including temporary shutdowns in San Francisco over its refusal to check customers' vaccine cards. 'There were so many pressures and just hoops we were having to jump through,' Snyder said on the podcast. 'You've got to do this, you have to wear a mask, you gotta put this plastic thing up between us and our customers and it was really terrible.' She continued: 'I look back and I'm like, 'Man, maybe we should have just pushed [back] even harder on some of that stuff and dealt with all of the legal backlash.'' Despite the move, Snyder made clear that In-N-Out isn't abandoning its roots. Earlier this year, the company announced it would shift its official corporate headquarters back to Baldwin Park, where the chain was born in 1948. 'My uncle opened the office in Irvine … in the '90s,' Snyder said. When her dad came, 'He was just like, 'This is not us. This is not our roots, this is not my dad,' and he wanted to move everyone back to Baldwin Park.' Snyder, who has four children with husband Sean Ellingson, said that California will continue to hold the bulk of their stores. Tennessee, however, is positioned for growth, as she noted that the company's supply chain from its Texas warehouse will support the expansion. 'We're able to reach Tennessee from our Texas warehouse,' she explained. 'Texas can reach some other states.' Still, fans hoping for an East Coast invasion shouldn't hold their breath. 'Florida has begged us and we're still saying no,' Snyder said. 'The East Coast states, we're saying no.' East Coasters will just have to wait. In-N-Out's Billionaire Boss Is Moving the Business Out of California — Here's Why first appeared on Parade on Jul 19, 2025 This story was originally reported by Parade on Jul 19, 2025, where it first appeared.
Forbes
25-06-2025
- Business
- Forbes
Moving My Business Cross-Country Was The Best Change I Could Have Made. You Can Do It Too.
When entrepreneurs start their businesses, they might often fantasize about setting up their laptops by an exotic swimming pool or taking calls on a tropical beach. It's part of the dream of working for yourself, right? Yet most of them don't do it. They might remain anchored in hometowns fearful they will lose clients and momentum if they were to relocate. Exotic locales weren't part of my original reasons for starting a business. But when the opportunity came to move my financial practice from Wisconsin to my own office in Longboat Key, Florida, I took it. Three years later, I know that moving 1,600 miles away was the most impactful change I could have ever made on my business. It hasn't been easy. Each day is filled with hard work, while four nights of the week are full of social networking events in our new community. Yet I believe any successful entrepreneur can do the same. I want to share a small story that illustrates some of the mindset I think is necessary to successfully relocate your own thriving business across the country. My husband Mark and I were new to the condos overlooking the Gulf of Mexico. The magnetic appeal of Longboat Key after many visits as well as aging parents nearby had motivated us to exchange Wisconsin winters for seaside living in the Sunshine State. Some longtime condo residents, all men, had invited Mark to play poker one evening. He said he would if I could join the game too. Neither one of us knew how to play, but we love to take on new challenges. So, we spent days watching YouTube tutorials and playing dozens of practice hands. The next week, wearing a sundress to our host's apartment and carrying a tray of freshly baked cookies, I was confident I would be able to hold my own in this new adventure. I did more than that by the end of the evening. I won the entire night. Even better? I repeated my victory in the rematch the following month. This small triumph reflects the three pillars in my approach to moving my financial business to a new community 1,600 miles away:LEARNING AND SHARING Constantly educating yourself and sharing that knowledge can make you a vital resource in any community. I love learning. I am always reading, everything from business books to historic biographies to beach reading. Receiving coaching from some renowned experts has also been an important step in developing my knowledge. I also love to teach others what I've learned. This may sound odd at first, but one way I have shared timely financial knowledge is by hosting a dessert club. It began when a friend's executive husband had a stroke, leaving him unable to feed himself. He had handled all of the household finances, including writing checks for bills. My friend soon asked for my help and came to my office weekly to learn how to manage their finances. She told another friend about how I was helping her, and then that friend told other friends, and soon our Ladies' Coffee Club was born, an informal gathering about financial strategizing. When I moved to Florida, I turned the gathering into a dessert club, a hybrid opportunity to discuss the latest in personal finance and sweet treat recipes with women attending from all over the country. I also enjoy sharing what I learn with my fellow financial advisor peers across Florida. By always growing and sharing your knowledge freely, you help build and expand your profile with whomever wants to CONNECTIONS Determine who your target audience is in your new community, then reach out to form social connections, both in person and online. You never know who may send you a potential client. After many moves, I've learned how to make genuine friends easily. My family and I have had to adapt to many communities quickly because of my husband's time in the military and his subsequent career. When moving to a new town, you need to realize that the people there don't need you, but you need them. My first step was always starting a moms group with the mothers of my daughters' classmates and organizing all of the playdates. I supersized that approach when I moved to Florida because I already knew that my new business prospective clients would come from mostly meeting people in my new community. Since my move, I created a Facebook group of full-time residents of our beachside town, now attracting nearly 2,000 members. We have a happy hour each month and there are always new faces joining us for the first time. Arranging and attending social activities in my new town ranks as high in importance as my regular business meetings. I learned Mah Jongg so that I can teach it weekly to the women of my community. My calendar is also regularly filled with trivia nights, pickleball, golf gatherings, wine society events, baseball games, and three different book clubs. A local realtor who refers many people my way, and we take turns holding social gatherings and inviting people we both know and don't know. Anyone can start a group, be it a 'lunch bunch' or 'Moms of Frenchies.' The key is that the group celebrates whatever your ideal client is interested in. Your gatherings are purely social without any business, but they connect you with people who may direct you to prospective clients or become clients themselves. In these groups, queries about what I do sometimes come up, or conversations turn to economic headlines. In either case, I answer questions fully and honestly, helping to establish myself as a trusted financial advisor. It is all about developing relationships and THE COMMITMENT Finally, moving your business across the country takes commitment, which always sounds easier than it is. For me, I was willing to practically start over so my family could achieve our vision for our new lives. I knew if I worked hard, I could build up my client base again if I created strategic plans for communication and outreach and implement them with consistency and patience. Fortunately, I had established and enjoyed frequent communication patterns with my Wisconsin clients, speaking to each of them at least once a month about their lives and plans. I often became a part of their families, invited to their weddings and baby showers. When I announced my move to Florida, 93 out of 100 said they wanted to keep working with me even though I wouldn't physically be there. In-person time is so important to me, so I committed to returning twice a year for face-to-face meetings with each of them. I felt such gratitude when I realized that the relationships I had created with my clients based on my commitment to their success were indeed strong and that my value to them exceeded my high expectations of myself. Looking back, I believe that hard work, follow-through, and consistent execution of the strategies I've outlined here are essential to achieving any of your goals. If you are indeed a successful entrepreneur once, you certainly have the work ethic and traits to be one wherever and whenever you YOUR LIFE WHEREVER YOU CHOOSE My greatest goal is for my clients to experience the highest return on their lives, not just their investments. How could I advise them on maximizing their lives if I didn't do the same for myself? I am so happy I made that 1,600-mile move. Re-imagining my business and acting on that vision has delivered the biggest impact on my business I could have ever created. Any apprehensions I had were replaced with steps that had proven me well before. I also thrived because of the expertise and support of an outstanding staff and excellent levels of service and opportunities from the Edward Jones organization. I eventually remembered that I know what I'm doing, I bring value to my clients, and they appreciate me no matter where I am. My advice for anyone thinking of uprooting your life's work: Keep putting yourself in environments full of ideal clients. Share your knowledge freely. Commit to success, no matter how difficult it is and how long it takes. Eventually, you can find your tribe in any community and some of them may even be your clients.
Japan Times
13-06-2025
- Business
- Japan Times
Government aims to create 10,000 jobs via business relocations from Tokyo
Japan on Friday set a target of creating 10,000 jobs in areas other than Tokyo over the three years through fiscal 2027 by promoting the relocation of business head office functions from the capital. The target is included in a 10-year basic concept for the implementation of Prime Minister Shigeru Ishiba's signature Regional Revitalization 2.0 policy, adopted by a government task force. The government aims to ease the overconcentration of businesses in Tokyo to address escalating labor shortages in the countryside, as well as ensure nationwide economic growth and realize a sustainable society. The basic concept stipulates the promotion of relocations and enhancement of head office functions to promote the outflow of people from Tokyo and increase job opportunities in provincial regions. The central government will ask local governments to use a tax incentive program to facilitate business relocations. It will also consider revising the program by analyzing how it is used. On the relocation of central government agencies from Tokyo, the state will present typical examples, such as by moving individual departments, to ask for suggestions from local governments. The central government also plans to promote people-to-people exchanges between urban and rural areas by utilizing what it calls "connected populations," or people who steadily interact with regional areas where they are not registered as residents. It will establish a registration system for such populations, with the aim of boosting the number to 10 million people and achieving a total of 100 million registrations by allowing such residents to choose multiple municipalities. The central government will devise specific measures to develop the basic concept into a comprehensive strategy by year-end, while local governments will be asked to revise their own strategies. It will promote private-sector efforts to increase the number of company towns — or municipalities deeply connected with specific companies — across the country. To discuss regulatory reform and support measures, the central government will set up a council headed by the prime minister.
