You cannot look at this myopically - there are many areas of CA's policies, especially in the 1970's through 90's where the "Silicon Valley" name originates fro

You cannot look at this myopically - there are many areas of CA's policies, especially in the 1970's through 90's where the "Silicon Valley" name originates from. There is a lot of inertia from policies - like stopping a massive locomotive - and just because the policies are less steamy, it still takes a lot to stop the train. Labor pool has a magnetic catch-22 effect. I've incorporated 2 LLCs in the past (not in CA) and it was literally a 10 minute job. Costs $50 one time fee. No recurring fees at all. Mostly online, albeit have to print out a form and mail it to the Dept of Revenue, but don't need to queue up anywhere. Opening a bank account is straight forward and takes 1 day. There is also a lot of variation from state to state - ironically, the red states have better policies for inequality for businesses. Low regulation in this area helps the "small guy/gal" get their feet wet without much hurdles. I strongly believe in regulation based on thresholds of how large/monopolistic/oligarchic companies get. Regulations should be designed in a way that promotes methodical canopy growth but not completely cover the seedlings that are hatching on the ground.