Incorporations Grow at Fastest Rate Since ’89

The number of businesses that incorporated in California continued to grow in July, making the rate of new-business growth in the first seven months of the year the fastest since 1989, a research firm said Wednesday.

A total of 4,507 new businesses registered with the state last month, bringing the year-to-date total to 32,962, up 7.1% from the same period last year, according to CDB Infotek Inc. of Santa Ana.

“The rate of business growth is very stable, and there’s really nothing in the economic fundamentals that would change current trends,” said CDB President Rick Rozar. Los Angeles County saw a 5.2% increase in new businesses in the first seven months of the year, to 13,388 from 12,732. Orange County enjoyed a 9.4% increase, to 3,756 from 3,432. Ventura County had 507 new incorporations, up 4.8%. Overall, the seven-county Southern California region was home to 21,763 new businesses, up 6.1%. The nine-county San Francisco Bay Area had 7,509 new incorporations, up 11.2%

The busiest ZIP Code in Los Angeles was 90017, which includes part of downtown and the Pico-Union area. Orange County’s strongest ZIP Codes were Irvine’s 92612 and 92614 and Newport Beach’s 92660.

The state’s seven-month new-business incorporation rate was the best since 36,737 new businesses started in the first seven months of 1989. The low point came in 1991, when 25,206 new incorporations were recorded in the first seven months.