In its 66th annual list of Fortune 500 companies, California holds the third place with 53 companies on the list headquartered there. The companies are chosen by their fiscal revenues, and the highest earners make it on the list.
Companies that made the list had revenues of a minimum of $5.7 billion, an increase of 1% on the threshold of the previous year. The 500 companies comprise 66% of the gross domestic product of the U.S. and have combined revenues of $14.2 trillion, an increase of 4% from the previous year.
According to Fortune, the companies on the list also showed increased profits of 8%, a growth of $1.2 trillion. The market value decreased by 10% to $20.4 trillion, and the 500 companies have a total number of 29.2 million employees globally.
Californian companies in the top 100
The first Californian company on the Fortune 500 list is Apple, and it’s in fourth place. In the fiscal year 2019, Apple’s revenues were $260.17 billion and it employs 137,000 people.
Alphabet, Google’s parent company, features in eleventh place with revenues of 162 billion dollars, a significant increase from $137 billion in the previous year.
Number 15 on the list is Chevron with $14.8 billion in earnings. They reported a record net oil-equivalent production of 2.93 million barrels per day, an increase of 7% from a year earlier.
California also has a banking representative, and Wells Fargo features at 30th place on the list. The bank employs 260,000 people.
Facebook, the social media giant, increased its revenues by 26.61% from 2018, for total revenues of $70.69 billion. Demand for Intel’s products continues to grow, and it recorded annual revenues of $70,848 billion in 2018.
Walt Disney continues providing successful entertainment experiences and products globally, and it continues featuring on the Fortune 500 list.
Other well -known companies among the top 100 include HP, Cisco Systems. Netflix, eBay, Uber Technologies, Gap, Tesla, Visa, and PayPal Holdings have a place among the 500 top companies.
California is known for its welcoming approach to innovative tech companies, but it is also home to many traditional companies.
California Remains Popular for Business Startups
Employee skills and access to private equity are two of the main reasons California continues to be a popular state to start a business in. California is home to the movie industry, their blockbusters that are enjoyed globally are the product of hard work. Like these, starting a business in California requires some planning and direction if they are to be successful.
Learning how to start a business in California is easy and the process is even simpler.
Start a business in California
The steps to start a business in California are easy. As mentioned above, the most basic step to starting a business anywhere is its business plan. Thereafter the rest of the steps are easy to follow, and the business can be up and running in no time.
The target market is the first consideration in a good business plan. This needs to be defined and should also include the age, gender, location, and income of the prospective customers.
Understanding the competition and the needs of the market are also vital. Every business must solve a problem for the consumer. The business plan also needs to define a timetable for its goals. These must include short-term and long-term objectives.
An initial marketing plan and its budget are an important step in the business plan.
Deciding on a business structure
Before the business can be registered in California, its formation structure must be decided. Sole proprietorships are the least formal business structure and do not offer any personal asset protection for business owners. The most popular business structure is the LLC, but businesses also opt for corporations.
Naming the business
The business name is important for a new entity. It must be easy to remember, catchy, and cannot be the same as another entity in the state. Business owners can use a business naming guide to come up with a clever name if they are stuck, and once the name is decided, it cannot be used by another business. This can be done from the state database.
Most businesses also decide on a brand name (DBA) for easier marketing of the business.
Filing the business
To start a business in California after the owners have decided on all the above is easy. The papers for the business must be filed with the state. This includes the Article of Organization. The state also needs the name of the chosen registered agent. They are responsible for receiving and forwarding compliance papers for licensing and tax obligations.
Businesses must comply with federal, state, and local laws. Any business that fails to comply may be faced with heavy penalties. As soon as a business is formed with the state, the owner needs to make sure all the necessary permits are sought and renewed as required.
Thereafter, tax compliance is vital and the business needs to file for an Employer Identification Number (EIN).
These are the most basic steps to start a business in California. A business owner needs to open a dedicated business account to keep the finances of the business separate. A credit card will also help the business establish a good credit score, something that can ensure funding opportunities at any stage in its growth.
Finally, the new business owners must place all their effort into growing the business brand and marketing the enterprise.