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#  Is Now a Good Time to Start a Business in LA?

**BUSINESS**-While these times may be unprecedented, many entrepreneurs in LA will be considering or in the process of starting their own business.

Written by Madeleine Holmes.

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December 28 2020

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**BUSINESS**-While these times may be unprecedented, many entrepreneurs in LA will be considering or in the process of starting their own business.

Perhaps they’re fueled by the fact that many successful businesses were born during past US recessions, such as General Motors, HP, and Burger King. Or maybe they’re inspired by how online shopping is on the rise, [with CNBC reporting that global online sales](https://www.cnbc.com/2020/08/25/how-ecommerce-can-capitalize-from-a-coronavirus-led-boom-in-online-sales.html) went up by 71% this second quarter, compared to last year’s numbers. Yet despite the business landscape looking good, many entrepreneurs in LA will be asking if it is a good time to start a business in the city.

 Here are some points to think about to help with this decision.

 **The county is home to many industry leaders.**

If LA were its own country, its economy would be one of the largest in the world. After all, California’s economy is the 5th largest globally, and this is largely due to LA. And while it’s common to see leaders in technology and innovation in the vicinity, like Procore Technologies and Dot818, LA is actually a powerhouse in many other industries. For example, LA is a leading source of apparel in the junior and contemporary category. It also has the greatest number of people working in the clothing industry in the US. Moreover, two out of the 10 top design firms [awarded by the Engineering News Record](https://www.enr.com/toplists/2020-Top-500-Design-Firms-Preview), AECOM and Gensler, are from LA. The county is also a pioneer in other fields like healthcare, education, entrepreneurship, and more. No matter what kind of industry you’re interested in starting a venture in there’s a huge chance that it could take off in LA.

**There’s plenty of support available for small businesses.**

The good news for entrepreneurs is that LA offers plenty of support for those starting a business. For example, those wanting to [create health technology startups in LA](https://labusinessjournal.com/news/2019/jan/25/helping-hand/) will be pleased to know that there are several federal grants available to them, which is having a positive impact on businesses. “The trend is that L.A. companies are applying for more funds,” said Ahmed Enany, chief executive of SoCalBio, who also noted that the companies were receiving the requested funds.

 Moreover starting up a new enterprise as a limited liability company is also straightforward, which makes doing so very attractive to those starting a new venture. [Registering an LLC with the State of California](https://www.zenbusiness.com/form-llc/california/) can be done in six steps, with many resources available online to help would-be business owners. The state’s Department of Consumer Affairs has a checklist you can reference to confirm if you qualify for an LLC. Meanwhile, the Office of Business and Economic Development lets you see all the licensing requirements that you need to avoid legal issues in the future. LA has 37 business departments with a $32.5 billion budget to provide businesses with the resources they need to become successful such as contracts, goods, and services. There’s plenty of support in the area for those looking to start a business.

**The government is strict with rules.**

While the government has supported businesses during the pandemic, they have also expected them to follow the new lockdown rules. Therefore, when they order the closing of every business in the county, regardless of where they are financially, they expect you to do as much. Last July, [struggling LA businesses got fined](https://www.citywatchla.com/index.php/cw/los-angeles/20134-la-could-not-be-more-unfriendly-to-business) as much as $356 for hanging out banners that indicated that they were still open. Hearing the outcry of small business owners during the early months of lockdown, however, Governor Gavin Newsom says that businesses are now free to open as long as the virus spread is slow in the community. This is why new business owners will need to be careful of where they choose to setup their company, and have contingency plans in place in case a new lockdown is imposed.

 It’s natural to be excited about the prospect of establishing a lucrative venture. However, there are a lot of factors that you need to consider before you can. For instance, California is such a big business hub that you might find yourself with a lot of competition in your chosen field. Or maybe this isn’t the time to establish a business due to the strict pandemic rulings. As long as you have considered everything above and are aware of the risks, then LA has a lot to offer new business owners.

-cw

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