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Key Takeaways On How To Start a Business In California: Thriving Metropolitan Areas: Small business owners in California may benefit from operating in populous and dynamic metropolitan areas such as Los Angeles, San Francisco, and San Diego – where access to a large customer base, diverse markets, and potential business collaborations are accessible. Challenging Tax Environment: California’s business tax structure has the potential to create financial challenges for small business owners. The state imposes high state income taxes on both ...