Anyone have much experience operating SMBs in the state of California?

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June 21, 2022

by a searcher from Princeton University in California, USA

I'm from California, and I'd love to include my home state as part of my target geography, but am concerned with some of the anti-SMB policies coming out of the administration. Just wondering if anyone has any insight into their experience operating within the state and perhaps if the conventional wisdom of avoiding the state is overblown or well-earned.

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Reply by a professional
from Dartmouth College in Los Angeles, CA, USA
From a lawyer in California's perspective (not a labor lawyer though), it can be tough for SMB's operating in the state. A lot of them, however, aren't actually in compliance with a number of the states labor laws etc., whether intentionally taking the risk or not being aware of all of the requirements. They often haven't had any issues just out of sheer luck or because they aren't on the state's radar. This can create issues when they try and sell to a larger organization that isn't willing to absorb the significant potential liabilities associated with past non-compliance. Make sure you diligence any of the companies you look at from a compliance perspective.
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Reply by a searcher
from University of California, Los Angeles in Dove Canyon, Rancho Santa Margarita, CA 92679, USA
Happy to share some thoughts if you have specific questions. I don't think its too different from anywhere else. As Brian mentioned, you'd want to keep track of tax, licensing and other compliance requirements.
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