How to Start a Business in Long Beach, CA – Useful Long Beach Facts 2022

California State

Start a Business in Long Beach, CA: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Long Beach, CA, is a plus for any entrepreneur. In general, setting up any form of business in California, US, is the initial step to building an international brand.

Entrepreneurs across the globe are interested in starting and expanding their businesses in Long Beach, CA. With an urban population of 462081 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in California. Like most places in the US, Long Beach, CA also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Long Beach, CA has a proper business environment for all.

How to Start a Business in Long Beach, CA

In this article, you will read about how to start a business in Long Beach and why you should choose Long Beach to start and run your business. We recommend you check below the important facts about Long Beach, CA; these might help you.

Long Beach, CA Household Income Statistics

Long Beach Median household income66410 USD
Long Beach households with dual income earners55.6 %
Long Beach households $150K+ Income15.8 %
Long Beach households $100K+ Income31.6 %
Long Beach households $100-150K Income15.8 %
Long Beach households $75-100K+ Income13.7 %
Long Beach households $50-75K+ Income17.1 %
Long Beach households $35-50K+ Income11.5 %
Long Beach households $25-35K+ Income8.4 %

Long Beach, CA Education & Labor force Facts

Long Beach residents with a bachelor’s degree (or equivalent)20.5 %
Long Beach residents with at least a 4-year degree31.8 %
Long Beach residents with a graduate degree11.3 %
Long Beach residents with a high school diploma but no more17.7 %
Long Beach residents with less than high school education19.7 %
Long Beach residents with some college but no more30.8 %
Long Beach residents with a Bachelor’s degree or higher (STEM fields)42.9 %
Long Beach households that own (rather than rent) their residence40.2 %
Long Beach residents 16 and older in the labor force66.6 %
Long Beach residents unemployed6.6 %

Long Beach, CA Demographics

Long Beach residents aged 0-912 %
Long Beach residents aged 10-1912.5 %
Long Beach residents aged 20-2916.7 %
Long Beach residents aged 30-3915.6 %
Long Beach residents aged 40-4913.2 %
Long Beach residents aged 50-5912.6 %
Long Beach residents aged 60-6910.1 %
Long Beach residents aged 70-794.8 %
Long Beach residents aged over 802.6 %
The average size of resident families in Long Beach, CA3.51
Estimated population per square kilometer in Long Beach, CA3518
Long Beach, CA urban population (estimate)462081
Long Beach, CA municipal population (estimate)462081

Now that you know what makes Long Beach of California good for business, let’s get started with the exact steps on how to start a business in Long Beach.

How to Start a Business in Long Beach, CA

Starting a business in Long Beach, CA, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in California, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Long Beach.

Step 0: Decide on What Business to Start

Decide on What Business to Start

This is the first thing you work on, the type of business you want to start in Long Beach. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,

  1. Through market research on demand trend
  2. Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
  3. What competitors are doing
  4. SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
  5. Your targeted buyers

Once you have the entire plan with you, you can continue working on the legal structure of your business. StartMyLLC will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.

Step 1: Choose Your Business Structure

Choose Your Business Structure

The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a California LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.

Step 2: Name Your Business

Name Your Business

The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of California to do the California LLC name search before you pick the available name. Below are some of the naming rules you need to follow,

  1. You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector. 
  2. If you are forming an LLC in California, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
  3. The name should reflect the nature of your business. Any name that can confuse people should not be picked.
  4. You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
  5. You can reserve your business name for a certain time before you form your business in Long Beach, CA by filing a name reservation application.

The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.

Step 3: Get a Registered Agent

Get a Registered Agent

A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a California LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Long Beach can be a registered agent. However, there are some requirements to becoming a registered agent.

  1. The person has to be 18+ years of age.
  2. Must be a citizen of the California
  3. Must have a physical street address in the California
  4. Must have legal rights to conduct business in the California

Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.

Step 4: Register Your Business

Register Your Business

The next step is to register your business under the Secretary of State, California. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the California SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Long Beach, CA. Your California LLC articles of organization should have the following details about your business

  1. Company/Business name, address
  2. Registered Agent Name, address
  3. Member-managed or manager-managed (in case of LLC)
  4. Type of business

Depending on the type of business structure, you may have to add some more information to the formation document.

Step 5: Write the Operating Agreement

Write the Operating Agreement

An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,

  1. About Business
  2. Members and management
  3. Capital contribution
  4. Profit Distribution
  5. Change of membership
  6. Dissolution

In future, if any member wants to leave the company or you want to dissolve the business, then the California operating agreement has everything recorded, from clauses to contributions.

Step 6: Obtain EIN

Obtain EIN

EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.

Step 7: Get Business Bank Accounts

Get Business Bank Accounts

Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Long Beach, CA. It increases your business credibility and liquidity. It will also be helpful for business loans.

Step 8: Create Your Business Website

Create Your Business Website

Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.

Other Things to do After Starting Your Business

  1. Once your company is set in the Long Beach, California, you need to file your taxes and apply for licenses (if needed).
  2. Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.

Important Long Beach Stats for Starting a Business

Before you start a business in Long Beach, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.

Education & Employment

Long Beach has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.


As we talk about the urban population density, the young population percentage in the city is approximately 16.7 (people in their 20s) and 15.6 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 35.3. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Long Beach has approximately 2.6 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.

Real Estate

Another important factor to mention about Long Beach is the home value of owned properties. The average value of owned houses is 584065. Also, the percentage of people living in their own houses is 40.2. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.


It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Long Beach who still do not have health insurance. The rate of people not having health insurance is 8.8. This depicts the lifestyle and overall health demography of Long Beach. As you plan to start your business in this city, you must consider this stat as well.

Income & Lifestyle

The income pattern of the people in this city is given in the table (Income) above. In Long Beach, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.

Similar Read – How to Start Business In Harrisburg, PA

Reasons to Start a Business in Long Beach

Long Beach offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Long Beach. Here are some of the reasons,

Stable Economic Growth

Long Beach or any other city in California has stable economic growth and an environment that helps any business to grow successfully. The economic structure of California shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.

Minimize Personal Liabilities of the Entrepreneur

If you’re considering starting an LLC in Long Beach, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Long Beach is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.

Federal and State Tax Relaxation

There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the California LLC tax structure to know more about the tax structures for LLCs in the state.

Government Incentives for Entrepreneurs

Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in California or any other state. That means if you are operating any business in Long Beach, then California State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.

Low Corporate and Other Business Taxes

Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in California. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.

Skilled Labour & Quality Manpower

In Long Beach, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 66.6 is the percentage of labour participation. Hence, it is clear that having a business in Long Beach will make a lot of difference to the existing labor force.

Demand for New Market and Industry

In Long Beach, California, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Long Beach.

If we follow the US Data, the median value of commute time for the residents to their work is approximately 31. If you are starting a business here, you must keep in mind that commutation can be a point to consider.

Intellectual Property Protection

The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.

Other Benefits

Long Beach (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Long Beach. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Long Beach is 15.6. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.

Similar Read – How to Start Business In Southgate, FL

When Should You Start Business In Long Beach California

WalletHub studied 100 large cities across the United States and ranked the best places to start a business. They compared the cost of running a business, the quality of the business environment, and the amount of resources available. Long Beach took second place in the best city to start a business category.

Starting a business in California requires you to navigate a complex set of rules and regulations. You will need to find the right resources to help you along the way. Long Beach offers several programs and resources to help you start your business.

The city of Long Beach has developed an easy to follow business brochure to help you find the information you need. The city also offers an online portal called CalGold to help you obtain a business permit. If you’re planning on incorporating, you’ll need to find out whether you need a DBA or a federal employer ID number. Depending on the type of business you’re planning to start, you may also need to obtain licenses for certain locations. You can also check with your local SBDC to see if they offer any resources.

You’ll also want to take advantage of the free marketing programs offered by the Downtown Long Beach Alliance. These include a free digital marketing workshop and a free AdWords Express workshop. You’ll learn how to market your business on social media and improve your web presence.

WalletHub also found that Long Beach was one of the best cities to start a business in the United States. It was ranked second overall on WalletHubb’s list of the best places to start a business. It scored high in the cost of running a business category, as well as the business environment category.

You’ll want to form a legal entity to protect your personal assets. You can choose to form an LLC or an S-Corp. In either case, you’ll want to file the appropriate tax documents. If you choose an S-Corp, you’ll also want to register your company with the state. If you choose an LLC, you can rent a virtual office space or use a P.O. box address.

The city also has a sign ordinance that allows the emergence of new architectural styles. The goal of the ordinance is to preserve the eclectic character of the city while enabling innovation.

The city of Long Beach also offers several free programs to help small businesses get off the ground. These include the Paycheck Protection Program, the SBA Debt Relief Program, and local assistance. The city also provides access to information on real estate and key economic data.

The city of Long Beach also has a free digital marketing workshop. This workshop is two hours long and focuses on how you can improve your web presence by using Google AdWords Express. You’ll also learn about the best practices for online marketing and how to reach new customers.

You’ll also want to research the city’s business regulations. Although you don’t need to incorporate in Long Beach, you’ll want to make sure you know the rules before you start a business.

FAQ About Long Beach, CA

How can I create a small business in Long Beach, CA?

Long Beach is a unique city that is home to a diverse population. It has a rich history that is reflected in the many restaurants and shops. Long Beach in California is a city that is always growing, so there are plenty of opportunities for entrepreneurs to create their own small businesses.

How do I get an EIN number in Long Beach, CA?

An online application for an EIN number is available from the IRS. You will need a business name, a business address, and a signature to finish the form. The EIN number will be sent to your address. The IRS website is where you may get an EIN number in Long Beach, CA.

How long does an LLC last in Long Beach, CA?

As long as it is properly managed, an LLC in Long Beach, CA, will live forever. To timely renew your LLC, you must send the California Secretary of State your yearly (franchise) report.

How much does a DBA cost in Long Beach, CA?

DBA filing fees in Long Beach, CA are $26. LLCs have to pay this amount to the FL Secretary of State to reserve their business name before setting up their business.

What are 3 disadvantages of an LLC in Long Beach, CA?

You must pay self-employment tax in addition to income tax if you have an LLC in Long Beach, CA. Additionally, filing costs for LLCs are higher than those for single proprietorships. Operating an LLC is more difficult than running a single proprietorship.

How much is a seller’s permit in Long Beach, CA?

You can find a seller’s permit in Long Beach, CA at a very low cost. A permit allows you to sell items in the city of Long Beach legally. There are many other permits and licenses that you may need to acquire before you can legally sell items.

Is it better to rent or buy in Long Beach, CA?

The answer to this question is very subjective in Long Beach, CA and depends on the person. Some people might be looking for a long-term investment, while others might want to make a quick buck. In the end, it’s up to the individual to decide what’s best for them.

In Long Beach, CA What can an LLC write off on taxes?

An LLC in Long Beach, CA, is able to deduct certain taxes. Some of these include company insurance, office supplies, mileage for business trips, automobile expenditures, home office costs, and many more. For further information, contact your neighborhood tax office.

Do I need a registered agent for my LLC in Long Beach, CA?

Yes, a registered agent is mandatory for your LLC in Long Beach, CA. A registered agent is a person who receives all the government and legal documents on behalf of your LLC. Hence, it is mandatory to have a registered agent.

Why is Long Beach, CA growing so fast?

Long Beach, CA, is expanding quickly, as can be seen by looking at the statistics from the last several years. This is due to Long Beach, CA’s booming economy, particularly in the service sectors. The economy is strengthened by the service sector.

What can I do with an LLC in Long Beach, CA?

In Long Beach, CA, your LLC may be used for a variety of purposes. You may spend less money by using this kind of company structure (as it has fewer tax burdens). From your LLC in Long Beach, CA, you may simply generate some decent income.

What business makes money the fastest in Long Beach, CA?

It’s challenging, but not impossible, to make money quickly in Long Beach, CA, or any other city. In Long Beach, CA, you may increase your income more quickly by operating a well-liked and in-demand company. Real estate, dining establishments, personal trainers, and construction companies are a few excellent examples.

Do you need a business license to be self employed in Long Beach, CA?

If you’re self-employed and live in Long Beach, CA, then you’ll need a business license. You can apply for a business license by completing the appropriate form and submitting it to Long Beach, CA authorities. You’ll need to include your business name, address, and the type of business you are engaged in.

How much does it cost to license a business in Long Beach, CA?

You must get in touch with the local government if you want to license a company in Long Beach, CA. They will provide you the necessary licensing and cost details. Depending on the kind of company you run in Long Beach, CA, there are several license fees.

What makes Long Beach, CA rich?

Long Beach, CA has seen significant economic growth recently. The key contributor to Long Beach’s wealth and ongoing expansion is the service industry. Aspiring business owners who want to launch their own company are welcome in the city.

What are 5 things you need to start a business in Long Beach, CA?

The top five requirements for launching a company in Long Beach, CA, are: 1. a business name, 3. Initial funding, 4. legitimate business permits, 5. A marketing strategy to advance your company.

Why you shouldn’t move to Long Beach, CA?

Make sure the relocation to Long Beach, CA, benefits both you and your company. You shouldn’t relocate to this city if doing business there would incur extra costs from the local government.

What does a registered agent do for a new company in Long Beach, CA?

The LLC is represented by registered agents in Long Beach, CA. For the LLC’s benefit, they are tasked with obtaining official and legal documentation. When establishing an LLC in Long Beach, CA, you must choose a registered agent.

Is $18 an hour good in Long Beach, CA?

If you’re making $18 per hour in Long Beach, CA, it’s not too awful. If you own a small company, particularly an LLC, you’re fine to go. In Long Beach, CA, establishing and maintaining an LLC is inexpensive.

What big business can I start in Long Beach, CA?

For those who wish to purchase somewhat unique clothing and footwear, you may create a shop in Long Beach, CA. You may market handcrafted, original clothing and footwear manufactured by independent designers. The shop may also have a small café.

What is the best area in Long Beach, CA to live?

Find the location that is perfect for your work or company while you’re trying to decide where to live in Long Beach, CA. You may choose your neighborhood in Long Beach, CA based on the clients your firm is trying to attract.

How much does it cost to get a tax ID number in Long Beach, CA?

If you reside in Long Beach, CA and do not already have a Tax ID number, you may be curious about the cost of obtaining one. An person or corporation may be identified by their Tax ID number, which is a nine-digit number given out by the IRS. It’s free.

Is Long Beach, CA good for startups?

It should come as no surprise that Long Beach, CA, is one of the greatest cities in the nation to start a business. More than a thousand businesses are based in the city, and Long Beach’s tech industry is flourishing, supporting more than 100,000 employment. Long Beach is a great place to reside as well.

What is a LLC in Long Beach, CA?

In Long Beach, CA, an LLC is a kind of company organization that resembles a sole proprietorship. A limited liability corporation has several traits with a partnership-run enterprise. Due to pass-through taxation, LLCs in Long Beach, CA are exempt from paying company income tax.

Is LLC free in Long Beach, CA?

In Long Beach, CA, forming an LLC is not entirely free. Everyone must pay the State a minimum filing fee. The state filing fee is tax deductible in several states. Consequently, you may get a free LLC.

What business are moving to Long Beach, CA?

When it comes to business, Long Beach, CA is one of the best places to move your business to. You can easily move your company to Long Beach as it is a business-friendly city in CA.

Will house prices go down in Long Beach, CA?

Long Beach, CA’s real estate market is dynamic; if shock affects the industry, house values may decline. However, Long Beach, CA, is seeing a boom in the real estate market. So, it is difficult to predict whether or not the price of homes would decrease.

What is a Long Beach, CA registered agent?

The LLC appoints a person to serve as its registered agent in Long Beach, CA. A registered agent must be chosen, and it is required. Anyone who is at least 18 years old and is qualified to do business in Long Beach, CA is eligible to serve as a registered agent.

Do LLC pay taxes in Long Beach, CA?

LLCs are exempt from paying state taxes in Long Beach, CA as a company. Depending on the owner’s personal tax bracket, they may be subject to federal taxation based on their personal income.

Can I start my own business with no money in Long Beach, CA?

In Long Beach, CA, it is possible to establish a company without any money. Although, in order to register your company with the California SOS, you must pay a minimum filing cost. Tax deductions are available for these filing expenses, however. Therefore, it’s possible that you might launch your company for nothing.

What is Long Beach, CA most known for?

Long Beach, CA is most recognized for its booming economy. This will be a terrific choice for you if you like doing business and are eager to launch your own company in this city. You may simply establish your own company in Long Beach, CA.

How do I start a LLC in Long Beach, CA?

When forming an LLC in Long Beach, CA, there are numerous factors to take into account. You must first choose the sort of LLC you wish to establish. LLCs come in two flavors: single-member and multiple-member. The next step is to submit the necessary documents to the Secretary of State.

What is the easiest business to start in Long Beach, CA?

Any company that can be started for less money is the simplest to run in Long Beach, CA. However, you also need to consider the pricing and the demand for the product or service. Good alternatives include food trucks, dog walkers, personal trainers, and home bakers.

How do I apply for a LLC in Long Beach, CA?

In Long Beach, CA, registering an LLC is a simple procedure. To create an LLC, you must first submit the necessary documentation to the Secretary of State. Then, you must make a trip to the County Clerk to submit documentation (if needed).

Why is Long Beach, CA so popular?

Numerous factors contribute to Long Beach, CA’s popularity. Long Beach offers great art and culture despite being a commercial city. The city’s economy has also become tremendously strong in recent years. Being among the finest places for startups is gaining popularity there.

In Conclusion

Starting a business in Long Beach is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, California has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Long Beach, CA.

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