Starting a business in L.A.

Never mind the naysayers, there are plenty of opportunities, according to an Inc. magazine overview. Unlike the myopic pans found in other magazines, this is a pretty solid primer on the pros and cons.

Don't let the sunny skies and sandy beaches fool you: Building a business in Los Angeles does come with its fair share of challenges. The vast geography of L.A. and its surrounding cities, as well as the notoriously clogged freeways that connect them, is one of the region's major obstacles. "I've missed meetings and had to reschedule because of the 405," says Brian Pettigrew, VP of Operations for The Visionaire Group].

California isn't one of the easiest places to set up a business, either. "California is the least friendly business state in the country in terms of regulations, taxes, and the cost of workers comp," says David Glickman, founder of Hometown Telecom, a international telecommunications provider based in Los Angeles. "The cost of living is high. Taxes in the city of Los Angeles are pretty high too. But despite that, the talent of the workforce and the entrepreneurial spirit of L.A. outweighs the difficult business environment."