In 1972, at age 18, Bob Taylor began working at American Dream, a guitar making shop owned by Sam Radding, where Kurt Listug was already an employee. When Radding decided to sell the business in 1974, a triumvirate of Taylor, Listug, and Schemmer bought American Dream and renamed it the Westland Music Company.
Needing a more compact logo suitable for the guitars' headstock, the founders decided to change the name to "Taylor" as it sounded more American than "Listug" and because as Kurt Listug put it, "Bob was the real guitar-maker." Listug became the businessman of the partnership while Taylor was responsible on design and production. In 1976, the company decided to begin selling their guitars through retailers. In 1981, facing financial difficulties, Taylor Guitars took out a bank loan to purchase equipment.
As of 2008 Taylor Guitars has more than 550 employees. The factory is located in El Cajon, California with worldwide distribution. A second plant has been opened 40 miles away in Tecate, Mexico where the entry-level guitars of the Taylor line (the Baby, Big Baby, and 100-200 series) are made along with the Taylor guitar cases. All other Taylor guitars are made in El Cajon, California. Taylor's corporate office is located in El Cajon, California.