California Business Startup Guides

Opening a Business in Santa Monica, California

Contemplating starting a business in Santa Monica, California? We walk you through the process of opening a business in Santa Monica.

Are You Sure You Want to Do This?

Before announcing to the world that you are going to start your own business, assess your entrepreneurial instincts and capabilities.

To determine whether you have what it takes to run a business, we recommend these three steps to help you decide:

  • Grab a meal or cofee with other entrepreneurs in Santa Monica. Ask them candidly what it's like to run a business.
  • Take a look at Starting a Company. It's a short article but it's a good reality check for those are about to jump into the world of entrepreneurship.
  • Talk it over with a close friend or partner. The people who know you best are often in the best position to tell you bluntly whether you will be a good entrepreneur.

What Business Are You Starting?

There are many businesses that you can start. How do you know which type of business is right for you? You might get some good ideas about what kind of business to start by reading Good Business Ideas.

For in-depth how-to guides on how to start specific businesses, browse our Good Businesses to Start section of our site. For example, you might be interested in our Opening a Grocery Equipment & Supplies Business guide or our How to Start a Trade Clearing Exchanges Business guide.

Remember that your new business will be in Santa Monica. If Santa Monica already has plenty of the kind of business you want to start, you might want to change your plans. Study Santa Monica demographics and do a competitive analysis as part of your startup planning process.

Santa Monica, California Demographic Information

Santa Monica has an active business community that includes small businesses, mid-sized businesses and large businesses.

To give you a better feel for Santa Monica demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Santa Monica.

Business Size
# of
Businesses
1-4 Employees
24524
5-9 Employees
5832
10-19 Employees
3866
20-49 Employees
2916
50-99 Employees
1128
100-249 Employees
552
250-499 Employees
102
500-999 Employees
30
1000+ Employees
24
All Santa Monica Businesses
38974

As a new Santa Monica entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Santa Monica for each business category. By looking at this chart, you can get a general sense for how much competition there is in the business niche that you are pursuing.

Business Type
# of
Businesses
Ambulance Services
2
Amusement Arcades
1
Appliance Repair and Maintenance
2
Architectural Services
96
Armored Car Services
1
Art Dealers
35
Audio and Video Equipment Manufacturing
2
Automotive Parts and Accessories Stores
12
Automotive Transmission Repair
1
Baked Goods Stores
3
Barber Shops
3
Beauty Salons
56
Bed-and-Breakfast Inns
1
Beer, Wine, and Liquor Stores
16
Book Publishers
7
Book Stores
12
Books Printing
1
Bowling Centers
3
Breweries
1
Building Inspection Services
1
Business Associations
9
Cable and Other Program Distribution
5
Cafeterias
4
Camera and Photographic Supplies Stores
6
Car Washes
5
Carpet and Upholstery Cleaning Services
2
Caterers
4
Child and Youth Services
7
Children's and Infants' Clothing Stores
11
Civic and Social Organizations
23
Clothing Accessories Stores
9
Coin-Operated Laundries and Drycleaners
2
Collection Agencies
1
Commercial Lithographic Printing
7
Commercial Photography
3
Computer and Software Stores
10
Computer Facilities Management Services
3
Computer Systems Design Services
34
Computer Training
5
Confectionery and Nut Stores
5
Confectionery Merchant Wholesalers
1
Consumer Lending
1
Convention and Trade Show Organizers
9
Convention and Visitors Bureaus
1
Couriers
4
Court Reporting and Stenotype Services
2
Credit Unions
6
Curtain and Drapery Mills
1
Custom Computer Programming Services
67
Dental Laboratories
5
Diagnostic Imaging Centers
5
Diet and Weight Reducing Centers
6
Digital Printing
2
Direct Life Insurance Carriers
2
Direct Mail Advertising
2
Display Advertising
2
Drafting Services
1
Drinking Places (Alcoholic Beverages)
20
Drywall and Insulation Contractors
1
Educational Support Services
7
Electric Power Distribution
2
Electrical Contractors
22
Electronic Auctions
1
Elementary and Secondary Schools
16
Emergency and Other Relief Services
1
Employment Placement Agencies
22
Engineering Services
41
Environmental Consulting Services
8
Exam Preparation and Tutoring
11
Exterminating and Pest Control Services
2
Family Clothing Stores
28
Family Planning Centers
2
Fine Arts Schools
16
Finish Carpentry Contractors
9
Fish and Seafood Markets
1
Fish and Seafood Merchant Wholesalers
1
Fitness and Recreational Sports Centers
29
Floor Covering Stores
4
Flooring Contractors
1
Florists
7
Food (Health) Supplement Stores
13
Food Service Contractors
4
Footwear and Leather Goods Repair
1
Footwear Merchant Wholesalers
2
Freight Transportation Arrangement
2
Frozen Specialty Food Manufacturing
1
Full-Service Restaurants
181
Funeral Homes and Funeral Services
1
Furniture Merchant Wholesalers
8
Furniture Stores
24
General Automotive Repair
40
General Medical and Surgical Hospitals
2
Gift, Novelty, and Souvenir Stores
23
Glass and Glazing Contractors
2
Golf Courses and Country Clubs
3
Grantmaking Foundations
14
Graphic Design Services
48
Hardware Manufacturing
1
Hardware Stores
4
Historical Sites
1
Hobby, Toy, and Game Stores
7
Home Furnishing Merchant Wholesalers
5
Home Health Care Services
5
Homes for the Elderly
8
Household Appliance Stores
8
Industrial Building Construction
1
Industrial Design Services
7
Insurance Agencies and Brokerages
48
Interior Design Services
40
Internet Publishing and Broadcasting
7
Internet Service Providers
10
Investigation Services
4
Iron and Steel Forging
1
Janitorial Services
14
Jewelry (except Costume) Manufacturing
3
Jewelry Stores
29
Junior Colleges
1
Kidney Dialysis Centers
1
Land Subdivision
11
Landscaping Services
12
Language Schools
1
Lead Pencil and Art Good Manufacturing
1
Lessors of Other Real Estate Property
13
Libraries and Archives
3
Limited-Service Restaurants
107
Limousine Service
6
Locksmiths
2
Luggage and Leather Goods Stores
1
Machine Shops
2
Mail-Order Houses
13
Manufactured (Mobile) Home Dealers
1
Marinas
1
Marketing Consulting Services
55
Masonry Contractors
3
Materials Recovery Facilities
1
Meat Markets
3
Media Buying Agencies
6
Media Representatives
9
Medical Laboratories
5
Men's Clothing Stores
11
Miscellaneous Intermediation
7
Mortgage and Nonmortgage Loan Brokers
18
Motion Picture and Video Distribution
13
Motion Picture and Video Production
338
Motor Vehicle Towing
3
Motorcycle Dealers
1
Museums
7
Musical Groups and Artists
35
Musical Instrument and Supplies Stores
3
Nail Salons
15
Natural Gas Distribution
3
New Car Dealers
21
New Housing Operative Builders
5
News Dealers and Newsstands
1
Nonresidential Property Managers
42
Nonwoven Fabric Mills
1
Nursing Care Facilities
14
Office Administrative Services
45
Office Equipment Merchant Wholesalers
3
Office Supplies and Stationery Stores
7
Offices of Bank Holding Companies
1
Offices of Chiropractors
34
Offices of Dentists
142
Offices of Lawyers
284
Offices of Optometrists
23
Offices of Other Holding Companies
12
Offices of Podiatrists
13
Offices of Real Estate Appraisers
4
Open-End Investment Funds
1
Ophthalmic Goods Manufacturing
1
Optical Goods Stores
11
Outerwear Knitting Mills
1
Packaging and Labeling Services
1
Paint and Wallpaper Stores
3
Painting and Wall Covering Contractors
12
Passenger Car Leasing
1
Passenger Car Rental
2
Payroll Services
2
Pen and Mechanical Pencil Manufacturing
1
Periodical Publishers
21
Pet and Pet Supplies Stores
11
Pet Care (except Veterinary) Services
8
Photography Studios, Portrait
12
Political Organizations
1
Port and Harbor Operations
1
Portfolio Management
28
Prepress Services
1
Private Mail Centers
7
Professional Employer Organizations
4
Public Relations Agencies
26
Quick Printing
5
Radio Networks
1
Radio Stations
6
Ready-Mix Concrete Manufacturing
1
Real Estate Credit
22
Real Estate Investment Trusts
25
Recreational Goods Rental
2
Residential Property Managers
48
Residential Remodelers
26
Retail Bakeries
5
Reupholstery and Furniture Repair
2
Roofing Contractors
5
Rooming and Boarding Houses
1
Satellite Telecommunications
1
Savings Institutions
14
Securities Brokerage
17
Security Guards and Patrol Services
3
Shoe Stores
28
Site Preparation Contractors
1
Snack and Nonalcoholic Beverage Bars
45
Software Publishers
26
Solid Waste Collection
2
Sound Recording Studios
22
Sporting Goods Stores
17
Sports and Recreation Instruction
8
Sports Teams and Clubs
1
Tax Preparation Services
11
Telecommunications Resellers
4
Telemarketing Bureaus
2
Telephone Answering Services
1
Television Broadcasting
4
Temporary Help Services
12
Temporary Shelters
4
Testing Laboratories
2
Tile and Terrazzo Contractors
2
Tire Dealers
7
Title Abstract and Settlement Offices
1
Tobacco Stores
2
Toilet Preparation Manufacturing
1
Tour Operators
8
Translation and Interpretation Services
2
Used Car Dealers
10
Used Household and Office Goods Moving
1
Used Merchandise Stores
12
Veterinary Services
9
Video Tape and Disc Rental
8
Vocational Rehabilitation Services
1
Voluntary Health Organizations
5
Wholesale Trade Agents and Brokers
27
Window Treatment Stores
2
Wired Telecommunications Carriers
18
Women's Clothing Stores
57
Women's Handbag and Purse Manufacturing
1

Have You Considered Buying an Existing Santa Monica Business?

An excellent way to get started in business is to Buy a Business in California. Follow that link and you may find several good businesses for sale in Santa Monica.

If you are headed down the path of buying a business, you may want to read this article: Hold Harmless Agreements When Buying Businesses.

Selecting a Name For Your Venture

Making the right decision when choosing a company name is very important. There are many decisions you'll make now that you can change later, but changing a company name years down the road is not very easy. So, choose a good company name at the outset.

We strongly advocate that you make sure the ".com" domain name is available for your company name. Every business needs a strong Web presence these days, and having a non ".com" domain means somebody else may outrank you in the search results for your own company name.

To get up to speed on what makes for a good company name, we encourage you to read this useful article: Naming a Company.

As a final piece of advice, remember that because you are opening a business in Santa Monica, it's very important that you make sure no other California company is using the business name you want to use.

Company Formation in Santa Monica, California

It's essential that your business is formed as a legal entity that is separate from its owners. Among other things, forming a legal entity for the business limits your liabilities.

The entity you form can be a corporation, LLC, sole proprietorship, partnership or other structure.

Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. Just because you are starting a business in California, you don't necessarily have to incorporate in California. In fact, you can incorporate wherever you want. For example, it's very popular to incorporate in Delaware, and incorporating in Nevada has become very trendy as well. Don't forget, though, that you will have to register as a foreign entity in all states that you do business in.

There's a lot to know about forming a company. To learn the fundamentals of company formation, browse articles on our site, such as Pre-Incorporation Agreements. You should also consider getting professional assistance from your business lawyer. Finally, if you are starting a business in Santa Monica, California, our information on Incorporating in California may be a useful resource if you decide to incorporate in California.

Make Sure You Have a Business Plan

A business plan is critical in maximizing the prospects of your new company. Indeed, your business plan is your game plan for how you hope to grow your business. Starting a business without a business plan is a recipe for disaster.

To learn more about business plans, read Business Presentations. You can also get face-to-face free consulting available from your local SCORE chapter in California.

Santa Monica Entrepreneur Interviews

We're compiling a number of interviews with Santa Monica entrepreneurs. Enjoy!

Next Steps

You have a dream -- starting a business in Santa Monica. To achieve your dream, you have to persevere, even when the odds are against you.

If you choose the right business and love what you do, you will greatly increase your odds of success.

We are here to help Santa Monica businesses to be successful. We believe entrepreneurship is an amazing engine for job creation in Santa Monica, neighborhood development and overall economic health.

More Entrepreneurial Resources for Starting a Business in Santa Monica, California

Here are more links that we believe will help you be successful in starting a business in Santa Monica.

More Startup Articles for California Cities

Starting a Business in Santa Maria
Starting a Business in Santa Paula

Browse All Business Startup Guides for California
Starting a Business Guides for Other States

 

 

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