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Survey Says California Is Less Than Friendly To Small Businesses

Posted on in Business Formation and Planning

When it comes to successfully starting a small business, hard work and a sound business plan are crucial. Unfortunately, however, some factors influencing success or failure are outside of your control. One of these is the state you live in.

In some ways, California is a great place to start a business. We have the nation's largest economy and the 8th largest economy worldwide. In other ways, however, California is among the hardest places in the country to start a new business. This is according to the results of a national survey and state-by-state ranking.

The survey and analysis were conducted by Thumbtack, a website that competes with services like Yelp and Angie's List. Nearly 18,000 small business owners nationwide were surveyed, and states were graded based on the results.

On the list of best places to start a business, California did not make the top 10. In fact, our state was actually near the bottom of the list. California never scored higher than a C grade on any of the metrics measured, and many metrics earned an F grade. These included:

  • Overall business friendliness
  • Regulations
  • Ease of starting a business
  • Tax code
  • Licensing
  • Employment, labor and hiring
  • Environmental regulations

This grade does not mean that it's impossible to start a business in California. Indeed, entrepreneurs do so every day. But it does mean that small business owners need all the help they can get.

If you want to start a business in California or help your existing business grow, you may want to seek the help of an experienced business law attorney.

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