There is fairly length set of rules and case law governing all of this. The short version is that if your company is engaged in business with Californians, ther

There is fairly length set of rules and case law governing all of this. The short version is that if your company is engaged in business with Californians, there's a decent chance that California law applies to you. http://en.wikipedia.org/wiki/Minimum_contacts http://en.wikipedia.org/wiki/Minimum_contacts This isn't entirely unique to California by the way (although California is notable for reaching further than other U.S. states). For instance, there's a famous case (or series of cases) concerning the application of French law to Yahoo with respect to activity taking place on U.S. servers but accessible to French users. http://en.wikipedia.org/wiki/LICRA_v._Yahoo http://en.wikipedia.org/wiki/LICRA_v._Yahoo! On a practical level, if you're worried about California law, you should consider if you have any people or resources located in California. Or in the U.S. generally. Or if you plan to expand to California at some point. It's one thing to break California law. It's another to have any assets that California can go after.