LOS ANGELES CITY BUSINESS LICENSES

Individuals who are self employed and do business in the City of Los Angeles are required to register the business with the city.  The city has a small business exemption of $100,000. So, if the gross receipts of the business are less than this, there is no city business tax IF the business is registered AND the business files a timely tax form reporting the gross receipts. Otherwise , there is a tax on the gross receipts of the business. The city will send a notice proposing tax and penalties if the address on the income tax return is in the city, there is self employment income on the income tax return and the business has not filed a business tax return.

In the last couple of years, the city has not been sending the business tax form to businesses which are registered.  Instead they have been sending a small post card reminding the business to file the form which can be done online. Many people discard the post card without reading it and then do not file the return.

So, be sure your business is registered if it conducts business in the City of Los Angeles and file the return or have your accountant prepare it. It is due the last day of February and reports gross receipts for the prior year. 

If your business is not registered with the city of LA please follow the link to register. http://finance.lacity.org/