Early on in the history of La Grange it was obvious that the city was a good town for trade due to its location. John Schumacher established the first bank in La Grange. He owned a store that eventually became a bank as people often treated it as one. It was fairly common for him to receive large shipments of silver. This helped area residents a great deal. Many people could only pay their bills once a year in cotton. The presence of a bank in La Grange made this more feasible. Residents could sell their cotton once a year, and then keep their money in the bank for the remainder of the year. 

By 1900 La Grange had many businesses including two meat markets, four grocery stores, two saddelrys, eleven barrooms, three hardware stores, two photograph galleries, three blacksmiths, sixteen lawyers, two dentists, and five physicians.  The La Grange Ginning and Milling Company went into operation around 1905. The company was both a cotton gin and a gristmill. Everything in the company was ruined because of a large flood in 1913. Despite the setback and changes, the company kept in operation until the 1930's. It was finally dismantled and sold as scrap during World War II.

Other stores and companies that were founded early on in the history of La Grange, still remain in business today.

Fayette County has had a newspaper since 1844. The first newspaper was called The La Grange Intelligencer. This was followed in 1880 by the La Grange Journal. The name and circulation rights were eventually sold to Richard Barton in 1986; part of the Fayette County Record.

The first telephone line in La Grange arrived during the early 1900's.

The La Grange utility system came into existence in 1946. It was at this time that La Grange purchased electric distribution and a major portion of the water system from Texas Public Service Co. A bond for $185,000 was issued to fund the project. This system provided citizens with adequate and reasonably priced utility services.

Not all businesses in La Grange were upstanding endeavors. Typical of many early towns, La Grange had a brothel. It was known as the Chicken Ranch. This establishment was a lively place that many visited. Although frowned upon by many citizens of nearby La Grange, visitors from places such as Texas A&M University and traveling business men frequented the establishment, until it was famously closed down in 1973.