While most of the United States is paving the road to economic recovery since the start of the global pandemic in early 2020, the U.S. Small Business Administration reported California added more than 214,000 new jobs in the fourth quarter of 2019. Roughly, 96,022 of the nearly 4 million small businesses found in California are currently small business exporters. Currently, California contributes about 14.62% to the overall U.S. GDP, allowing it to be the highest-ranked state compared to the average nominal GDP. 

The social-economic impact currently fueling the Californian economy makes it one of the most popular places for small businesses and new startups to headquarter themselves in the Golden State. With diverse employee rates, with more than 1.2 million self-employed citizens coming from minority groups, and local government pushing for more progressive business legislation – California is keeping a stronghold as one of the most powerful U.S. states.

We’ve looked at some research and found 7 reasons why starting an LLC in California is a business strategy that should be considered by young entrepreneurs. 

Strong Business Environment 

WalletHub placed California as the 8th best state for conducting business. With a strong business environment, suitable access to resources, and a thriving buying market, the economic climate for new LLCs in California is becoming an attractive choice for new business owners. 

Ample Investment Opportunities 

Home to Silicon Valley that gave us Google, Facebook, Netflix, eBay, Cisco Systems, and Apple Inc., to name but just a few – new investment opportunities are in abundance throughout the state. Larger corporations and multinational companies are constantly looking for new startups to collaborate with, giving small businesses better financial backing. 

Networking works 

Having access to financial and business resources can assist startups to firmly establish themselves within the Californian business market. The state has an almost endless supply of marketing opportunities and resources. Host to the Dreamforce and more popular Oracle OpenWorld conventions links new business owners with potential clients and new investors.

Infectious self-employment and startup culture 

California has one of the highest-ranked startup cultures in the U.S. With an average of 45,000 new startups each year, creating more than 120,000 job opportunities – self-employed individuals and startup entrepreneurs are creating a vibrant and competitive economic market. 

Attractive Government Lending Schemes

The Small Business Administration reported that in 2018, more than 1.1 million loans under $100,000 were granted to individuals for personal and business-related expenses. The Community Reinvestment Act, which leads the loaning of federal and state funding to residents reported that these loans accumulated more than $16.1 billion in grants. 

Diverse Business Culture 

With some of the most culturally diverse, and world-renowned universities, including UCLA, Berkeley, and Stanford, these institutions are making an effort to host some of the most progressive and advanced business and entrepreneurial programs. This allows young thought leaders to put theory into practice. 

Tourist hot spot 

Most parts of California have grown to become tourist hot spots, with Los Angeles and San Francisco leading the pact. With a buzzing tourism industry, and a rich offering of natural and cultural attractions, the state offers a bountiful supply of business opportunities in any type of sector. 

Final thought 

California is a hub for business leaders and entrepreneurial innovators looking to push the boundaries of their industries. This is a place where a simple idea can bloom into a billion-dollar company. With endless possibilities, attractive financial support, and a plethora of networks, California is the Golden State with golden opportunities.