State to do business in. This should be of no surprise to anyone who is aware of the over-regulation, over-taxation and flat out shitty outlook for the "golden" state. Link
^ I went to school in CA for thirteen years, and no way would I let some of the teachers I had instruct a dog I didn't like to sit, much less educate my fucking brats.
I still maintain New Jersey is worst, based on the respective Department of Corporations. That's a professional opinion. Pity the fool for forms a LLC in New York, though...the publication fees can be as high as $1000...