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The famous port house was already founded in 1692 by Job Bearsley in Villa Nova de Gaia (Porto), after which there were around 20 name changes until 1844. With the arrival of John Taylor in 1816, John Fladgate in 1837 and Morgan Yeatman in 1844, it took on its present name of Taylor, Fladgate & Yeatman, but is mostly referred to as Taylor's for short. In 1744, Bartholomew Bearsey (the founder's son) acquired the Casa dos Alambiques estate in Salgeiral near Régua, which is still the firm's central winery. Taylor's thus became the first English port wine trading house with its own vineyard property. The American Joseph Camo joined as a new partner in 1808. In 1893, the estate was expanded by the purchase of Quinta da Vargellas (220 ha) on the upper Douro, which is considered the flagship of the company.

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