California Businesses Leaving the State
California businesses are no longer calling the Golden State home. In fact, many are seeking other sites for their headquarters, especially tech companies. The number of businesses exiting the state and their reasons should give people in California reason to consider their own moves out of state. If you work for a company thinking of moving out of California, start planning now in case you also need to move.
How Many California Businesses Are Leaving the State?
The number of California businesses leaving to place their headquarters elsewhere has been on the rise for the last several years. In fact, between 2018 and June 2021, 265 companies announced they would move their headquarters out of California. However, this only reflects large companies making headlines about their moves. It does not account for small business or medium-sized companies that did not release public announcements. Therefore, the number could be higher.
The first half of 2021 saw almost as many relocations (74) as all of 2019 (78), which was the year with the highest total to that point. Another way to look at the numbers is based on the average number leaving each month. While the average losses from 2018 through June 2021 was 6.3 companies per month, in 2021, the average rocketed to 12.3 businesses each month.
Why Do California Businesses Leave?
There are several reasons companies leave California. This state ranks as the 49th in business tax climate ratings. Only New Jersey had worse taxes for businesses.
Heavy regulations, licensing requirements, and permitting also make conducting business in the state difficult. Regulatory restrictions in California number the highest in the country, increasing business operating costs to meet the requirements and handle legal concerns from failing to comply.
Why Does the Location of Company Headquarters Matter?
When companies move their headquarters, their major operations centers take jobs with them. In fact, many people who work at these companies may find themselves needing to move to follow their jobs. Plus, when companies move, the chances of getting a job in their new locations increases. Therefore, if you want to get a job, you may need to follow some of these major companies in their moves out of the state.
Contact IMPACT Properties If You Need to Leave California for Your Job
Many people today find they need to leave California to follow their companies. Plus, the allure of lower housing costs and taxes draws many people out of the state. If you need to move out of California, connect with IMPACT Properties to help with your relocation.