How to Start a Business in Torrance, California
Why Torrance for Your Business
Torrance sits in the heart of LA’s South Bay, about 20 miles south of downtown Los Angeles, with a population of roughly 140,000. This is a city built on a foundation of manufacturing, aerospace, and corporate headquarters — and the consumer spending power to match.
Honda and Acura chose Torrance for their U.S. headquarters, and that single decision pulled in a supply chain of auto-related service businesses and talent. When a company that size anchors in a city, it creates demand for everything from corporate catering to IT consulting to employee relocation services. But the corporate anchor goes deeper than cars. Robinson Helicopters designs and builds its aircraft right here in Torrance — the only place in the world where Robinson R22s and R44s roll off the production line. Honeywell Garrett produces turbochargers for automotive and aerospace applications. Arconic manufactures aerospace fasteners. King’s Hawaiian operates its main bakery facility in the city. These aren’t satellite offices — they’re production and headquarters operations that employ thousands and generate demand for B2B services.
The numbers back up the opportunity. Torrance has 7,600 business establishments employing approximately 119,000 people, generating an $8.4 billion annual payroll. That payroll figure matters because it tells you where the spending power is — these aren’t minimum-wage jobs. Median household income runs $116,217, and 55% of residents hold a bachelor’s degree or higher. That’s an affluent, educated consumer base that spends money locally on dining, fitness, professional services, childcare, home improvement, and specialty retail.
Del Amo Fashion Center anchors the retail side — at 2.5 million square feet, it’s one of the largest malls in the United States and pulls shoppers from across the entire South Bay. The mall generates foot traffic that benefits restaurants, service businesses, and retail shops in the surrounding blocks. If your business serves consumers, proximity to Del Amo puts you in the path of spending.
Torrance also has one of the largest Japanese-American communities outside Japan. Mitsuwa Marketplace and Nijiya Market both headquarter here, and the Japanese and Korean business community creates demand for specialized restaurants, professional services, import businesses, and cultural services that don’t exist in most American cities. If you speak Japanese or Korean, or your business concept serves these communities, Torrance gives you a concentrated customer base.
Zamperini Field, Torrance’s general aviation airport, handles roughly 175,000 annual operations — useful if your business involves aviation services, flight training, or charter operations. The city sits minutes from the beach, positioned between Redondo Beach and Palos Verdes — a quality of life advantage that helps attract and retain employees who might otherwise look at jobs further from the coast.
Choose Your Business Structure
Your first state-level decision is choosing a business entity. Each structure has different costs, liability protection, and tax treatment in California.
LLC (Limited Liability Company): File online for $70 at bizfileOnline.sos.ca.gov through the California Secretary of State. This is the most popular choice for small business owners because it separates your personal assets from business debts. Processing takes 3-5 business days online, or 3-5 weeks by mail. Expedited options exist: $350 for 24-hour, $750 for same-day, $500 for 4-hour processing.
Sole Proprietorship: No state filing required unless you need a DBA (Fictitious Business Name). If you’re operating under any name other than your legal name, file a Fictitious Business Name Statement with the LA County Clerk at 12400 E. Imperial Hwy, Norwalk, or call (800) 201-8999. You’ll also need to publish the DBA in a local newspaper for four consecutive weeks.
Corporation: $100 filing fee with the Secretary of State. Corporations file a Statement of Information for $25, due within 90 days of formation and then annually.
The California franchise tax reality: Every LLC formed in California owes an $800 minimum annual franchise tax starting in year one. The old first-year exemption under AB 85 expired for formations after 2023. This tax hits regardless of whether your business earned a single dollar. LLCs with gross receipts above $250,000 owe an additional LLC fee on a graduated scale — $900 for $250K-$499K, $2,500 for $500K-$999K, $6,000 for $1M-$4.99M, and $11,790 for $5M and above.
S-Corp election through IRS Form 2553 can reduce self-employment tax if you pay yourself a reasonable salary. California S-corps pay a 1.5% tax with a minimum of $800. This election makes sense once your business generates enough profit that the self-employment tax savings exceed the cost of running payroll for yourself. Talk to a CPA before making the election — it’s easy to file but complicated to undo.
Register with the State
Before you deal with Torrance city requirements, handle your state registrations.
California Secretary of State: The bizfileOnline portal at bizfileOnline.sos.ca.gov handles LLC filings, name availability checks, and your Statement of Information ($20 for LLCs, due within 90 days of formation, then every two years).
Franchise Tax Board (FTB): Pay your annual $800 franchise tax and file state income taxes through ftb.ca.gov. The first payment is due by the 15th day of the 4th month after your entity forms — form your LLC in January, and the franchise tax is due April 15. Contact FTB at (800) 852-5711.
California Department of Tax and Fee Administration (CDTFA): If your business sells tangible goods, register for a seller’s permit at cdtfa.ca.gov. The permit is free to obtain. Sales tax in Torrance is 10.25% — that breaks down to 6% state, 0.25% LA County, and 4% special districts. Note that this rate changed in March 2025, so verify the current rate at cdtfa.ca.gov.
EIN (Employer Identification Number): Free from the IRS at irs.gov/ein. You need this for bank accounts, tax filings, and hiring.
Employment Development Department (EDD): If you hire employees, register for California state payroll taxes — SDI, SUI, and PIT withholding — within 20 days of your first employee’s start date at edd.ca.gov. California has no exemptions for small employers on workers’ compensation insurance either — even one employee triggers the requirement. CalOSHA, California’s own occupational safety program (separate from federal OSHA), also applies to all employers.
Business Personal Property: If your business has $100,000 or more in fixtures, equipment, or other personal property, the LA County Assessor requires an annual Business Property Statement. This affects restaurants with commercial kitchens, manufacturing operations, and any business with significant equipment.
Get Your Torrance Business License
Every business operating in Torrance, physically working in Torrance, or using its own vehicles to deliver to Torrance must have a City of Torrance Business License. There are no exceptions for part-time operations or home-based businesses.
Where to apply: Business License Division at the One Stop Permit Center, 3031 Torrance Blvd, Torrance, CA 90503. Call (310) 618-5828 with questions.
When you submit your application, it gets routed to multiple city departments for review — Planning (zoning compliance), Building (occupancy), Environmental (hazardous materials if applicable), and Fire Prevention (mandatory inspection). Each department must sign off before your license is issued.
The License Review Board: This is the part that catches people off guard. If your business type falls under Torrance Municipal Code SS 31.7.3, you must appear before the License Review Board in person before the city will issue your license. The Board meets on the 1st and 3rd Thursdays of each month at 10:00 AM. If you miss a meeting, you’re waiting two weeks for the next one. Check whether your business type is on the list before you plan your opening date.
Fire Inspection Fee: Every new business at a fixed location gets a mandatory fire inspection — no exceptions. The Fire Department inspects building construction versus occupancy type and checks for hazardous processes. This fee is assessed per business at each location, and subsequent annual re-inspections carry additional costs. Budget for this on top of your license fee.
SB 1186 state accessibility fee: Added to every new business license application statewide since 2013. This is a California state mandate, not a Torrance-specific charge.
Special situations: If your location was vacant for 90 or more days, or if your business type differs from the previous tenant, expect additional multi-department review. Contact the Business License Division first to understand the timeline.
Renewals happen online, by mail, or in person annually. Plan your timeline carefully — between the multi-department routing, possible License Review Board appearance, and fire inspection scheduling, the process from application to approved license can take several weeks. Don’t plan a grand opening before your license is in hand.
Home-Based Business in Torrance
Running a business from home in Torrance requires an extra step before you apply for your business license: a Home Occupation Permit from the Community Development Department.
Community Development: 3031 Torrance Blvd, (310) 618-5990. Confirm hours before visiting — the office is closed every other Friday.
Pick up the supplemental application form at the counter. Most applicants get approved the same day if they meet the conditions. The city caps home occupations at two per residence, and each one needs its own separate business license.
The mandatory conditions are straightforward: no signage visible from outside your home, no employees working at the residence, and no customer foot traffic beyond what’s normal for a residential neighborhood. No outside storage of materials or equipment. No hazardous materials.
One condition that surprises some applicants: the City Manager retains the right to inspect your premises to verify compliance. You agree to this when you sign the application. In practice, inspections are rare unless neighbors complain, but the city has the legal authority to show up and check.
If you’re renting, make sure your lease doesn’t prohibit home-based businesses. The city requires you to confirm compliance with your rental agreement on the application. Violating your lease is a separate issue from the city permit — the city won’t enforce your landlord’s rules, but they’ll ask you to certify that you’re not breaking them.
Zoning and Additional Permits
Check zoning before you sign a lease. The Torrance Community Development Department can confirm whether your business type is allowed at your proposed address. Getting this wrong means breaking a lease or paying for a space you can’t use.
Seller’s Permit: If you sell tangible goods, get your seller’s permit from CDTFA. The nearest State Board of Equalization office is at 5901 Green Valley Circle, Suite 200, Culver City — (310) 342-1000.
Fictitious Business Name (DBA): Filed with the LA County Clerk at 12400 E. Imperial Hwy, Norwalk — (800) 201-8999. After filing, you must publish the name in a local newspaper for four consecutive weeks.
Health Permit: If your business involves food handling, your license information gets forwarded to the LA County Health Department for approval. This applies to restaurants, food trucks, catering operations, bakeries, and any business that prepares or serves food. The health permit process runs in parallel with your city license — start it early.
Alcohol License: If you plan to serve alcohol, you need a California ABC (Alcoholic Beverage Control) license before the city will issue your business license. ABC licenses take months to process, so apply as early as possible if alcohol is part of your business model. The ABC has multiple license types depending on whether you’re selling beer and wine only, full liquor, on-premises consumption, off-premises sales, or some combination.
Open a Business Bank Account
Separate your personal and business finances from day one. To open a business bank account, bring your EIN letter from the IRS, your Articles of Organization from the California Secretary of State, your Torrance Business License, and a photo ID.
Torrance has no shortage of banking options. Local credit unions based in Torrance, plus Chase, Bank of America, and US Bank all have multiple branches along Hawthorne Blvd and near Del Amo Fashion Center. Shop rates and fees — business checking accounts vary widely between institutions. Pay attention to monthly maintenance fees, minimum balance requirements, transaction limits, and whether the bank offers integrated payment processing. Some banks waive fees for the first year, which helps during the startup phase when cash flow is unpredictable.
If your business handles cash — restaurants, retail, personal services — proximity to your bank branch matters for daily deposits. Pick a bank near your business location, not just the one with the best online reviews.
Business Resources in Torrance
Torrance Economic Development: business.torranceca.gov provides a new business guide and site selection assistance. If you’re deciding where in Torrance to locate, this is your starting point.
LA Regional SBDC (Small Business Development Center): 13430 Hawthorne Blvd, Hawthorne, CA 90250 — (310) 973-3177. Free one-on-one consulting and seminars covering everything from business plans to financing to marketing. This is taxpayer-funded and genuinely useful — take advantage of it.
US SBA Los Angeles District Office: Free business planning resources available at sba.gov, including loan programs like the SBA 7(a) and microloans.
South Bay Workforce Investment Board: Job training and workforce development programs that can help you find and train employees.
Torrance Area Chamber of Commerce: Networking events, business advocacy, and introductions to the local business community. Worth joining if you want referrals and visibility in the South Bay. The Chamber hosts monthly mixers and annual events that put you in front of other business owners who can send you customers or become your vendors.
The startup process in Torrance has more steps than most South Bay cities. Between the state-level registrations (LLC filing, franchise tax, seller’s permit, EDD), the city-level licensing (application, multi-department routing, possible License Review Board appearance, mandatory fire inspection), and the additional permits (DBA, health permit, ABC license depending on your business type), you should budget four to eight weeks from your first filing to your first day of legal operations.
Start with the California Secretary of State to form your entity. While that processes, get your EIN from the IRS and apply for your seller’s permit if needed. Once your entity is formed, open your bank account and apply for your Torrance Business License. If you need a Home Occupation Permit, get that first. If the License Review Board applies to your business, plan around their 1st and 3rd Thursday schedule. And budget for the fire inspection fee on top of your license costs — it’s the expense that surprises people.
Once you clear those hurdles, you’re operating in one of the strongest consumer markets in Southern California — an affluent, educated South Bay population of 140,000 with a median household income of $116,217, anchored by major employers like Honda, Robinson Helicopters, and King’s Hawaiian, and supported by the foot traffic of Del Amo Fashion Center. The paperwork is worth it.