Morgan Hill offers people starting a new business a dynamic economic landscape where small town agricultural heritage meets modern innovation and contemporary lifestyles. Its centerpiece is Morgan Hill’s revitalized historic downtown, set against the picturesque backdrop of El Toro and the eastern foothills of the Santa Cruz Mountains range.
The city’s diverse commercial districts each present opportunities for those starting a business, while its growing population and strategic South Bay location make it an attractive destination for startups of all types, from retail storefronts and home service businesses to technology companies.
This guide covers both strategic considerations for choosing a location and some of the specific legal requirements for establishing your business, such as publishing a fictitious business name statement, which individuals and partnerships need to establish a legal identity, secure rights to operate under their chosen brand and open a bank account.
Morgan Hill has a rich business history that evolved from its agricultural foundations to becoming part of the South Bay’s diverse economic ecosystem, with a strong connection to innovation and technology through its proximity to Silicon Valley. Today, Morgan Hill successfully balances its agricultural roots with modern business development, creating opportunities across multiple industries.
Commercial Districts
Monterey Road Corridor serves as Morgan Hill’s primary commercial spine, featuring a diverse mix of retail stores, restaurants, automotive services and professional offices. This busy thoroughfare offers excellent visibility and convenient access for businesses serving both local residents and “scenic route” traffic passing through.
Downtown Morgan Hill centers around Depot Street and Third Street, where the city has made significant strides in revitalization. The historic downtown features a dynamic mix of locally-owned shops, restaurants and service businesses housed in both restored historic buildings and modern developments. A legacy granary converted into The Granary by Weston Miles Architects 20 years ago houses a restaurant, bar and coffee shop amidst retail and office tenants and adjacent residential development.
Notable recent projects by visionary hospitality developer Frank Leal include the restored Granada Theater, which hosts live performances and events, the boutique Hotel MOHI currently under construction, and MOHI Farms restaurant featuring farm-to-table dining. The new Cura Contemporary art gallery and workspace in the architecturally striking Edes Building adds a dynamic cultural dimension to downtown, featuring two floors of exhibition space and artist workshops.
Cochrane Plaza and Surrounding Areas represent Morgan Hill’s newer retail development, featuring major national retail stores, restaurants and services that serve the city’s growing residential population. This area offers modern facilities with ample parking and convenient amenities.
Industrial Areas: With more than 7.7 million square feet of built Industrial and Research & Development innovation space and a reserve of undeveloped industrial-zoned land, Morgan Hill provides space for manufacturing, distribution and technology companies. These areas offer larger facilities, truck access and competitive lease rates for businesses requiring copius operational space. Major industrial projects by Trammell Crow Company include the 500,000-square-foot Cochrane Technology Center, representing Silicon Valley’s largest speculative industrial development. The area is also home to major employers like Shoe Palace’s distribution and corporate facilities.
Legal Requirements for Business Formation
Businesses operating in Morgan Hill must complete several key steps:
- Fictitious Business Name (FBN) Filing: A fictitious business name filing is required for any business not operating under a business entity or individual owner’s legal name. File with the Santa Clara County Clerk-Recorder’s Office.
- FBN Publication: After registering the fictitious business name with the county clerk, California law mandates publishing the FBN statement in a newspaper of general circulation for four consecutive weeks. The Morgan Hill Times is Morgan Hill’s established local newspaper and has been adjudicated as a legal newspaper. After publication in the Morgan Hill Times, submit proof to the county clerk to complete the registration. After registering with the county clerk, upload your form at PublishMyNotice.com to publish your notice.
- Business License: Obtain a business license through the City of Morgan Hill’s online portal or Planning Division. All businesses must renew this license annually, and fees vary by business type and size.
- Apply for an Employer Identification Number (EIN), a federal tax ID issued by the IRS that you’ll need to hire employees, open a business bank account or file taxes. It’s free and easy to apply online at irs.gov/EIN.
- Additional Permits: Depending on your business type, you may need: Health Department permits (food service); Building permits for tenant improvements; Signage permits from the Planning Division; State-level professional licensing; Alcohol sales permits (for restaurants/bars); Fire Department clearances for certain occupancies.
Local Support Resources
The Morgan Hill Chamber of Commerce provides valuable services for new businesses, including:
- Networking opportunities through monthly mixers and special events
- Business development seminars and workshops
- Grand opening ribbon-cutting ceremonies
- Advocacy on local business issues
Gavilan College offers business classes and a hiring office for businesses who want to recruit students and graduates.The Small Business Development Center at San Jose State University provides free consulting services to Morgan Hill entrepreneurs, covering business planning, market research, financing options and operational strategies.
Advantages of Morgan Hill Location
Morgan Hill offers several strategic advantages for new businesses:
Geographic Position: Located along Highway 101, Morgan Hill provides easy access to Silicon Valley markets while offering more affordable real estate and operating costs than northern peninsula cities.
Quality of Life: Morgan Hill’s family-friendly environment, excellent schools and outdoor recreation opportunities help businesses attract and retain quality employees.
Growth Potential: As one of the faster-growing cities in Santa Clara County, Morgan Hill presents expanding market opportunities for businesses serving residential and commercial customers.
High-Tech Industry Presence: Morgan Hill has attracted numerous high-technology companies, including Anritsu (test and measurement equipment), Specialized Bicycle Components, TenCate Advanced Composites and emerging tech firms drawn by the city’s proximity to Silicon Valley and competitive operating costs.
Visionary Leadership: The city benefits from strong pro-business leadership, including Assistant City Manager for Development Services Edith Ramirez, who previously served as Economic Development Director for nine years, and Mayor Mark Turner, a former CEO of the Gilroy Chamber of Commerce who brings experience in economic development and regional collaboration.
Agritourism Opportunities: Morgan Hill’s agricultural heritage supports a thriving agritourism sector, ranging from award-winning local wineries and tasting rooms to seasonal attractions like corn mazes at local pumpkin patches and farm stands on the outskirts of town, creating opportunities in hospitality and specialty agriculture.
Final Steps Before Launch
Complete these tasks before opening your doors:
- Secure all required permits and licenses
- Publish your fictitious business name statement in a newspaper of general circulation
- Establish business banking relationships
- Set up accounting and tax systems
- Obtain necessary insurance coverage
- Develop your marketing and customer acquisition strategy
- Connect with local business organizations and networking groups
By carefully selecting your location and completing all legal requirements, your Morgan Hill business will be positioned for success. The city’s combination of agricultural heritage, strategic location, growing population, and strong community support creates a welcoming environment for new ventures across diverse industries.
