[5] In 1972, at age 18, Bob Taylor began working at a guitar-making shop owned by Sam Radding called American Dream, where Kurt Listug was already an employee.

When Radding sold the business in 1974, Taylor,[6] Listug, and a third employee, Steve Schemmer, bought American Dream and renamed it the Westland Music Company.

[7] 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.

[2] In 1995, Bob Taylor was interested in finding out if using exotic tonewoods in quality guitars was more important than luthier techniques and good design.

[13] The usual practice in guitar neck construction was to support the fretboard up to the fourteenth fret and glue the unsupported remaining length to the soundboard.

The NT neck fitted into a slot on top of the guitar body, achieving the desired angle with small shims.

Taylor's 145,000-square-foot manufacturing facility is located in El Cajon, California, about 20 miles east of downtown San Diego.