Chief Executives Name California as Worst State for Doing Business California is the worst state in the union for doing business—again. For the second year running, California ranked dead last in a survey of chief executives regarding the best and worst states to run companies. Even though California is home to the Port of Los Angeles, Silicon Valley, Hollywood, and Napa Valley—all best-in-class for the industries with which their regions are synonymous—California’s high tax burden, high cost of living, and other factors put the Golden State at the bottom of the list, according to the latest annual ChiefExecutive.net survey.