What makes CA so hot is the fact it is THE center of multiple tech industries. That can not be replicated anywhere else. So, those who "have an idea" bring it to CA--because there is pretty much nowhere else with the wide range of expertise in so many diverse areas. Plus, if someone DOES like the idea/concept, they *might* be able to do more than just "like it". They might want "in" because they see something they think is likely of great value (multiple meanings of that word).

Taxes? Business only owes income taxes on PROFIT. So, is your business profitable yet? If not (or only slightly), then business taxes are irrelevant. Business is also allowed to recover losses incurred in prior years, so taxes OWED don't happen until prior year(s) losses have already been fully recovered.