It is not clear to what degree these laws[Dodd-Frank, ACA] affect business formation, but in a 2010 report for the Office of Advocacy of the U.S. Small Business Administration, researchers at Lafayette University found that the per employee cost of federal regulatory compliance was $10,585 for businesses with 19 or fewer employees, compared with $7,755 for companies of 500 employees or more [then add state compliance]. Large and established businesses navigate through rules and compliance requirements. Small and new businesses often find them prohibitive.
Critics of health care claim a primary driver of health care costs is the cost of administration. It’s certainly a factor, but regulatory compliance and related administration permiates every business, adds to the cost of doing business and certainly adds to the cost of providing employee benefit programs to workers leading in some cases to a reduction if not elimination of those benefits which translates into less total compensation.