Los Angeles is a thriving hotspot for entrepreneurs, but before you get started, one question stands out: “Do I need a City of LA business license?” The short answer is yes. Whether you’re launching your venture in the City of LA or LA County, a business license is a must to stay compliant and avoid costly penalties. Let’s break it down.
What is a Los Angeles Business License?
A City of LA business license is formally called a Business Tax Registration Certificate. This certificate allows you to conduct business legally and ensures the city collects the appropriate taxes. For businesses in LA County, the rules are slightly different, but the principle is the same: A business license is required to operate legally.
Who Needs a Business License in Los Angeles?
If you’re conducting business within the Los Angeles City limits — whether from a storefront, a home office, or a freelancer — you must register for a Business Tax Registration Certificate.
What happens if I don’t get an LA county business license?
Failure to obtain a City of LA business license can result in penalties, interest charges, and even legal action.
How to get a Business License in Los Angeles
The process is straightforward and can be completed online or in person. But the fastest way to get your certificate is through the LA Office of Finance online registration portal. You’ll need:
- Your Social Security number (for sole proprietors) or Federal EIN (for partnerships, LLCs, corporations, or Trusts)
- A description of your business activities
- Business name and start date
- Business type (such as Sole Proprietorship, Partnership, Corporation, etc.)
- Business address and contact information
- Other information you may need to submit includes:
- Sales Tax Number
- Business/Professional Activity Code
- Prior Year(‘s) Business Gross Receipts
After completing the online form, you’ll immediately receive a temporary certificate. A permanent certificate will follow within 4 to 6 weeks.
If you prefer to register in-person, visit one of the LA Office of Finance locations and bring the same information listed above. Alternatively, you can download the Business Tax Certificate Application from their forms library, complete it, and email it to [email protected].
Do I Need Additional Permits?
Depending on your business activities, you also may need a:
- Police Alarm Permit: For businesses with alarms.
- Tobacco Retailers Permit: For businesses selling tobacco products or paraphernalia.
- Police Non Alarm and Fire Permits: The online registration process will guide you through identifying these requirements.
How Much is a Business License in Los Angeles?
The cost varies, depending on your revenue. Most businesses pay an annual flat fee of $50–$150 or a small percentage (1% to 3%) of gross receipts.
Are there exemptions for small businesses?
Yes. If your business earns $100,000 or less annually, you may qualify for the Small Business Exemption. Note: You must register first in order to be eligible.
Do I Need a Business License in LA County?
If your business operates in the unincorporated areas of LA County or cities such as Malibu, Santa Clarita, or Westlake Village, you’ll need to apply for a County Business License through the LA County Treasurer and Tax Collector. Use this step-by-step guide to navigate the process.
For more information about obtaining a business license, we recommend you speak to the Los Angeles Office of Finance or the Los Angeles County Treasurer’s office.
Protect Your LA Business with Simply Business
One crucial step might remain: taking care of your business with business insurance. It can help financially protect your new venture from claims associated with accidents, property damage, mistakes, and injuries. These claims can be extremely costly — enough to financially ruin your burgeoning business.
The type of business insurance you might need often depends on the type of business you own. Let’s look at a few that you might want to consider:
General Liability Insurance: A foundational liability insurance to help handle costs from third-party accidents, property damage, and bodily injury.
Workers’ Compensation Insurance: Coverage to help take care of employees who get sick or injured on the job. Most states require this for small businesses with full- or part-time employees. It also can benefit business owners who don’t have employees.
Professional Liability Insurance: Coverage for damages and legal costs for mistakes or negligence claims. This policy is often recommended for businesses that provide advice and guidance to their clients.
Understanding which option is best for you can be confusing. The good news is you don’t need to decide on your own. Spend a few minutes online with our handy quote tool, and we’ll begin looking for quotes from respected insurers.
Or if you’d rather speak to one of our licensed insurance agents, give Simply Business a call at 844-654-7272, Monday-Friday, 8 a.m. to 8 p.m. (ET). We’ll present available coverages so when your business license application gets approved, you’ll be good to go with the right insurance options, and you can move forward with peace of mind.