How to Start a Business in Monterey, CA – Useful Monterey Facts 2023

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California State

Start a Business in Monterey, CA: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Monterey, CA, is a plus for any entrepreneur. In general, setting up any form of business in California, US, is the initial step to building an international brand.

Entrepreneurs across the globe are interested in starting and expanding their businesses in Monterey, CA. With an urban population of 28575 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in California. Like most places in the US, Monterey, CA also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Monterey, CA has a proper business environment for all.

How to Start a Business in Monterey, CA

In this article, you will read about how to start a business in Monterey and why you should choose Monterey to start and run your business. We recommend you check below the important facts about Monterey, CA; these might help you.

Monterey, CA Household Income Statistics

Monterey Median household income80908 USD
Monterey households with dual income earners53.2 %
Monterey households $150K+ Income22.3 %
Monterey households $100K+ Income40.4 %
Monterey households $100-150K Income18.1 %
Monterey households $75-100K+ Income12.8 %
Monterey households $50-75K+ Income17.8 %
Monterey households $35-50K+ Income10.3 %
Monterey households $25-35K+ Income7.7 %

Monterey, CA Education & Labor force Facts

Monterey residents with a bachelor’s degree (or equivalent)31.4 %
Monterey residents with at least a 4-year degree55.8 %
Monterey residents with a graduate degree24.4 %
Monterey residents with a high school diploma but no more9.8 %
Monterey residents with less than high school education5.7 %
Monterey residents with some college but no more28.7 %
Monterey residents with a Bachelor’s degree or higher (STEM fields)49.6 %
Monterey households that own (rather than rent) their residence34.3 %
Monterey residents 16 and older in the labor force69.3 %
Monterey residents unemployed3.8 %

Monterey, CA Demographics

Monterey residents aged 0-99.4 %
Monterey residents aged 10-198.9 %
Monterey residents aged 20-2920.2 %
Monterey residents aged 30-3915.2 %
Monterey residents aged 40-499.2 %
Monterey residents aged 50-5912 %
Monterey residents aged 60-6911.2 %
Monterey residents aged 70-798.7 %
Monterey residents aged over 805.2 %
The average size of resident families in Monterey, CA2.91
Estimated population per square kilometer in Monterey, CA1276
Monterey, CA urban population (estimate)28575
Monterey, CA municipal population (estimate)28575

Now that you know what makes Monterey of California good for business, let’s get started with the exact steps on how to start a business in Monterey.

How to Start a Business in Monterey, CA

Starting a business in Monterey, CA, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in California, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Monterey.

Step 0: Decide on What Business to Start

Decide on What Business to Start

This is the first thing you work on, the type of business you want to start in Monterey. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,

  1. Through market research on demand trend
  2. Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
  3. What competitors are doing
  4. SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
  5. Your targeted buyers

Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.

Step 1: Choose Your Business Structure

Choose Your Business Structure

The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a California LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.

Step 2: Name Your Business

Name Your Business

The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of California to do the California LLC name search before you pick the available name. Below are some of the naming rules you need to follow,

  1. You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector. 
  2. If you are forming an LLC in California, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
  3. The name should reflect the nature of your business. Any name that can confuse people should not be picked.
  4. You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
  5. You can reserve your business name for a certain time before you form your business in Monterey, CA by filing a name reservation application.

The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.

Step 3: Get a Registered Agent

Get a Registered Agent

A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a California LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Monterey can be a registered agent. However, there are some requirements to becoming a registered agent.

  1. The person has to be 18+ years of age.
  2. Must be a citizen of the California
  3. Must have a physical street address in the California
  4. Must have legal rights to conduct business in the California

Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.

Step 4: Register Your Business

Register Your Business

The next step is to register your business under the Secretary of State, California. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the California SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Monterey, CA. Your California LLC articles of organization should have the following details about your business

  1. Company/Business name, address
  2. Registered Agent Name, address
  3. Member-managed or manager-managed (in case of LLC)
  4. Type of business

Depending on the type of business structure, you may have to add some more information to the formation document.

Step 5: Write the Operating Agreement

Write the Operating Agreement

An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,

  1. About Business
  2. Members and management
  3. Capital contribution
  4. Profit Distribution
  5. Change of membership
  6. Dissolution

In future, if any member wants to leave the company or you want to dissolve the business, then the California operating agreement has everything recorded, from clauses to contributions.

Step 6: Obtain EIN

Obtain EIN

EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.

Step 7: Get Business Bank Accounts

Get Business Bank Accounts

Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Monterey, CA. It increases your business credibility and liquidity. It will also be helpful for business loans.

Step 8: Create Your Business Website

Create Your Business Website

Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.

Other Things to do After Starting Your Business

  1. Once your company is set in the Monterey, California, you need to file your taxes and apply for licenses (if needed).
  2. Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.

Important Monterey Stats for Starting a Business

Before you start a business in Monterey, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.

Education & Employment

Monterey has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.


As we talk about the urban population density, the young population percentage in the city is approximately 20.2 (people in their 20s) and 15.2 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 36.9. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Monterey has approximately 5.2 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.

Real Estate

Another important factor to mention about Monterey is the home value of owned properties. The average value of owned houses is 813604. Also, the percentage of people living in their own houses is 34.3. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.


It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Monterey who still do not have health insurance. The rate of people not having health insurance is 4.5. This depicts the lifestyle and overall health demography of Monterey. As you plan to start your business in this city, you must consider this stat as well.

Income & Lifestyle

The income pattern of the people in this city is given in the table (Income) above. In Monterey, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.

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Reasons to Start a Business in Monterey

Monterey offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Monterey. Here are some of the reasons,

Stable Economic Growth

Monterey or any other city in California has stable economic growth and an environment that helps any business to grow successfully. The economic structure of California shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.

Minimize Personal Liabilities of the Entrepreneur

If you’re considering starting an LLC in Monterey, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Monterey is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.

Federal and State Tax Relaxation

There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the California LLC tax structure to know more about the tax structures for LLCs in the state.

Government Incentives for Entrepreneurs

Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in California or any other state. That means if you are operating any business in Monterey, then California State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.

Low Corporate and Other Business Taxes

Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in California. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.

Skilled Labour & Quality Manpower

In Monterey, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 69.3 is the percentage of labour participation. Hence, it is clear that having a business in Monterey will make a lot of difference to the existing labor force.

Demand for New Market and Industry

In Monterey, California, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Monterey.

If we follow the US Data, the median value of commute time for the residents to their work is approximately 19.2. If you are starting a business here, you must keep in mind that commutation can be a point to consider.

Intellectual Property Protection

The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.

Other Benefits

Monterey (aka ) is ranked at 3 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Monterey. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Monterey is 15.2. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.

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When Should You Start Business In Monterey California

Whether you are new to the Monterey area or an experienced entrepreneur looking to expand your business, you will need to make a few important decisions. These are primarily financial and legal in nature. Getting a business license is a good place to start. Getting a business license can be difficult due to the various levels of government at play. A good resource is the Small Business Administration. The SBA has many tools and resources available to help your business get up and running.

In addition to registering a business entity, you will need to choose a business name. A fictitious business name statement (FBNS) is a required piece of paper for any business with more than one owner. The California Secretary of State Office handles this. The most common business structures include sole proprietorship, partnership, and S corporation. Some regulated industries have specific licensing requirements, such as retailers and wholesalers.

The Monterey Small Business Development Center (MBDC) at Cabrillo College offers many small business training courses. They are also a good resource for advice and guidance. They also offer a free microgrant program to help start your own business. They also have an online resource center for small business information and tips.

The MBDC has an elite team of consultants available for no cost small business consulting. They also offer free entrepreneurship training classes and networking opportunities. The MBDC’s most popular program is the Start-Up Challenge Monterey Bay, which is open to participants in Monterey, Santa Cruz, and San Benito counties. These classes will make your startup more visible to local businesses, government agencies, and potential investors. This is the best place to learn about the many opportunities available to entrepreneurs in Monterey County.

The Monterey Small Business Development Center has one of the most extensive libraries of business and industry information in the area. Aside from the extensive library of business literature, the center also hosts an extensive number of workshops, seminars, and webinars on a variety of subjects. The MBDC also has a business forum to help entrepreneurs discuss and learn from one another.

The Monterey small business community is a dynamic one. It is home to a large number of large, midsized, and small businesses. As a result, you will need to choose a business location carefully. This is especially true if you are starting a business from your home. You may also need to acquire a home occupation permit.

The Monterey Small Business Development center also has a number of free webinars and workshops, and there are also a number of online resources available. One resource you may want to check out is the Blueprint for a Safer Economy, a statewide recommendation that can help you decide what’s best for your business. You can also check out the Small Business Administration’s online resource center for small business assistance. The small business community in Monterey County is a vibrant one, and it’s not hard to find a mentor or two if you take the time to search for them.

FAQ About Monterey, CA

How do I start a LLC in Monterey, CA?

It is simple to form an LLC in Monterey, CA, by visiting the website of the California Secretary of State. You will need to register your company name with the state, and then you can go about the process of filing for your tax ID number and getting a bank account.

How many small businesses are in Monterey, CA?

More than a thousand small enterprises may be found in Monterey, CA, which has a population of over a million people. A food truck company is one of the most well-liked small enterprises in Monterey, CA. In addition, there are local garage sales and home-based bakeries.

What can I do with an LLC in Monterey, CA?

In Monterey, CA, you may create any kind of company if you have an LLC. Create a solid marketing strategy, get capital for your startup, and manage your firm in Monterey, CA.

How long does an LLC last in Monterey, CA?

In Monterey, CA, an LLC is valid for as long as you keep it active. To avoid having their LLC in Monterey, CA terminated, they must renew it on time.

Why is Monterey, CA so popular?

Due to its vibrant culture, populace, and artistic scene, Monterey, CA has become very popular. Monterey’s rich culture, population, and educational system draw visitors despite the fact that it is a corporate hub.

What legal documents do I need to start a business in Monterey, CA?

A general business license is required to start a company in Monterey, CA. Monterey may have varied criteria and laws depending on the kind of company. To find out the requirements for Monterey, CA business licenses, contact the local authorities.

Will house prices go down in Monterey, CA?

Monterey, CA’s real estate market is dynamic; if shock affects the industry, house values may decline. However, Monterey, CA, is seeing a boom in the real estate market. So, it is difficult to predict whether or not the price of homes would decrease.

Is Monterey, CA LLC friendly?

Monterey, CA is regarded as a favourable location for LLCs. The many benefits that are accessible to business owners are the cause. Tax breaks and business financing are also accessible to entrepreneurs in Monterey, CA.

Is moving to Monterey, CA a good idea?

It’s not a terrible idea to move to Monterey, CA. Monterey boasts a decent level of life and a ton of startup prospects. Monterey, CA, is a city with a lot to offer businesses. Moving to Monterey is thus not a terrible decision.

How long does it take to register a business in Monterey, CA?

A wonderful spot to start a company is Monterey, CA. In Monterey, a company may be registered in roughly a day. You must include your company name, address, and contact details. Additionally, you’ll have to list the company’s executives, directors, and members.

Is it better to rent or buy in Monterey, CA?

In Monterey, CA, the answer to this question is very individualized and relies on the person. While some individuals may wish to invest for the long term, others might just want to become rich immediately. What’s best for a person ultimately depends on them.

Can I run a business from my home in Monterey, CA?

In Monterey, CA, operating a company from home is legal. However, some cities demand local licenses to conduct home-based businesses. For that, you should verify with the local government. You can operate your company from home if you’re authorized to.

How do you set up an LLC in Monterey, CA yourself?

There are a few steps you must take in Monterey, CA, if you want to create your own LLC. You must first register your company with the state of California. Additionally, you must choose a registered agent. By submitting formation paperwork, you may achieve this.

Can I be my own registered agent in Monterey, CA for LLC?

Anyone who is over 18 and resides in Monterey, CA is eligible to serve as a registered agent. You may serve as your own registered agent in California if you fulfill the requirements.

Which is the cheapest business to start in Monterey, CA?

In Monterey, CA, online companies are not only popular but also inexpensive to start. The least expensive businesses to establish in Monterey, CA might be online legal consulting, online selling, or online education. Additionally, you might open a home office for your cake making company.

How do I protect my business name in Monterey, CA?

Registering your company name with the Secretary of State can help you protect it in Monterey, CA. This will enable you to file a lawsuit against any other company that misappropriates your company name. The Secretary of State is another place where you may register your brand name and product names.

What unique business can I start in Monterey, CA?

When it comes to unique business ideas then pet-sitting is the best one in Monterey, CA. Most of the families in Monterey have pets and they need a caregiver when the masters are off to work. So, it would be a great idea to start a business of pet-sitting.

What policies do I need for a small business in Monterey, CA?

You may need to take various insurance if you own a small company in Monterey, CA. Depending on the size of your team, additional policies may include a code of conduct for employees, a health and safety policy, a vacation and attendance policy, and more.

Is it cheaper to live in Monterey, CA or Houston?

Houston, Texas is more expensive than Monterey, CA for living expenses. Monterey has a cheaper cost of living than Houston. Monterey has less expensive houses than Houston. The price of groceries is less expensive in Monterey than it is in Houston.

What is Monterey, CA most known for?

It is a little tricky to pinpoint the thing Monterey, CA is most known for. Monterey is a well-liked city with plenty to offer, including tourist attractions, breathtaking scenery, art, culture, diversity, and, of course, a thriving economy. In this city, there are many of things to discover.

What is needed to sell in Monterey, CA?

Selling your product in Monterey, CA can be a good option if your product is in demand. Make sure you have the following before trying to sell your product: 1. A solid sales strategy; 2. An understanding of your rivals; 3. A grasp of prospective customers; and 4. Product marketing.

What requirements does Monterey, CA require to start a business?

The permission to do business in Monterey, CA, is the primary need for starting a company there. Before starting your company, inquire with the local government about the specific rules and licenses required to operate in Monterey.

What business makes money the fastest in Monterey, CA?

Choose a company that is well-liked and in demand in Monterey, CA, if you want to start making money more quickly. Enterprises that may expand more quickly than others in Monterey, CA include food businesses, dog trainers, and personal trainers.

How much is a seller’s permit in Monterey, CA?

You need a seller’s permit to sell products in Monterey, CA. This license costs nothing and is good for a whole year. Fill out a form on the City of Monterey website to request this permission.

What should I know before moving to Monterey, CA?

Before you relocate to Monterey, CA, there are a few things you should think about. You need to be aware of your earning potential in addition to your cost of living. Be aware of your target customers before relocating to Monterey if you intend to start a company there.

What is a LLC in Monterey, CA?

In Monterey, CA, an LLC is a sort of company organization that combines elements of both a sole proprietorship and a partnership. Although pass-through taxes exists, LLCs do not have double taxation. Consequently, consumers may make significant financial savings.

Do you have to renew LLC Every year in Monterey, CA?

In Monterey, CA, it is wise to timely renew your LLC. Check the status of your LLC and learn when it has to be renewed by visiting the website of the California Secretary of State. You may renew your LLC on the internet if it needs to be updated.

How can I make money from home in Monterey, CA?

You may want to think about working as a freelance writer if you’re searching for a method to generate money in Monterey, CA. You may work from home in Monterey, CA and set your own hours as a freelance writer, which is one of several methods to earn money.

What business can make you rich in Monterey, CA?

Monterey, CA is a popular city. It has a rich economy and a growing population. Hence, starting any business would be profitable in the long run. To become a rich entrepreneur, you can start a food business or a restaurant business on any of the busy roads in Monterey, CA.

How much does it cost to license a business in Monterey, CA?

If you’re looking to start a business in the great state of CA, you may be wondering how much it will cost to license a business in Monterey. The cost to license a business in Monterey, CA depends on the type of business you want to start.

What are the benefits of a LLC in Monterey, CA?

Having an LLC in Monterey, CA, entitles you to a number of tax advantages, including pass-through taxes and a lack of corporate income tax. You can work from home, and the cost won’t be taxed. Additional tax advantages are also possible.

How much is business insurance in Monterey, CA?

Depending on the sort of business you have, the size of your organization, and the nature of the business, there are different business insurance costs in Monterey, CA. For instance, the annual cost of general insurance for a small business with less than 10 workers might be as low as $1,000.

What is better than an LLC in Monterey, CA?

In Monterey, CA, a single proprietorship is preferable over an LLC since it is less expensive to form one. Comparing an LLC to a sole proprietorship in Monterey, CA, an LLC can be a superior option.

What does a registered agent do for a new company in Monterey, CA?

The LLC is designated as being represented by registered agents based in Monterey, CA. For the LLC’s benefit, they are tasked with obtaining official and legal documentation. When establishing an LLC in Monterey, CA, you must choose a registered agent.

How much tax does an LLC pay in Monterey, CA?

Monterey, CA LLCs do not have to pay income tax on their company profits. Income tax is due from each LLC member based on their individual income. The remaining taxes include the franchise tax, employment tax, and sales tax.

In Conclusion

Starting a business in Monterey is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, California has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Monterey, CA.

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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