Entrepreneurs looking to incorporate in California will likely experience an environment with heavy startup activity, as a recent survey by CNN Money found states with high unemployment, including the Golden State, to be highly entrepreneurial - likely a result of laid-off professionals seeking to form their own companies as a means of returning to work.
Of course, California's economic woes are not limited to its jobs market, as the state struggles with the country's highest small businesses bankruptcy rate, a heavy foreclosure rate and a system of heavy regulatory and tax burdens that serve to discourage investment.
"[California is] expensive, it's hostile to business and environmental regulations are more of a drag on business than protecting the environment," T.J. Rodgers, CEO of Cypress Semiconductor, recently told Chief Executive magazine.
In such conditions, it's important for business owners to consider what's best for them. If it makes sense to pack up and form an LLC in Texas, then so be it. If a business' client base is in California and it needs to stay put, then stay put.
As troubling as California may be for some business owners, the state boasts one of the largest economies in the world, a unique business landscape and a highly entrepreneurial culture.
Tags : ca, financial management, operations, small business management
Posted: May 24th, 2011