There is much confusion around the licenses and permits that businesses in and around Los Angeles need. There are many different types of licenses and permits that may be required. For an overview, see our guide Do I Need to Register My Business?

One requirement for just about every business, in almost every city in California, is to get a local business license. The formal name for the business license is sometimes the “Business Tax Registration Certificate,” or BTRC, or some variation of this, as it is primarily the way the city taxes businesses.

How much does a business license cost?

The initial fee and the annual tax/fee for a business license varies by city. For some cities there is no initial fee (including the city of Los Angeles). Other cities usually have an initial fee of $50-$400. Most cities also charge an annual tax/fee, either flat fee and/or percentage of gross revenue (around 1-3%). Some cities have a small business exemption. More info below.

Do I need to renew the business license every year?

Yes, in most cities and locations, you will need to renew your business license each year. The due date varies by city.

What are the requirements for business licenses in the Los Angeles area?

Here is some information about business licenses in select cities in the Los Angeles area:

City of Los Angeles

• Referred to as Business Tax Registration Certificate
• No initial fees
• Tax based on gross income (small businesses with less than $100K revenue are exempt from tax, but must still file annually)
• More info below

Burbank

• Referred to as Business license, Business application, or Business Tax Registration
• Application fee of about $30 + zoning review (if applicable)
• Annual fees of about $100 + fees based on # of employees
• If you have a home-based business, you must have an inspection by the city, and you may not have any business guests on your premises (such as clients or customers)
• More info at Burbankca.gov

Glendale

• Referred to as Business Registration Certificate
• Initial fee is about $480; annual renewal is about $125
• Home based businesses can get a Home Occupation Permit instead
• More info at Glendaleca.gov

Pasadena

• Referred to as Business license
• Minimum $200 + fees based on # of employees
• More info at CityofPasadena.net

Santa Monica

• Referred to as Business License
• Minimum fee $75 + % of gross income (businesses with $100K in revenue or less are exempt from tax, but must still file annually)
• More info at SMgov.net

Long Beach

• Referred to as Business license
• Starts at around $280 + fees based on # of employees
• More info at Longbeach.gov

Unincorporated areas of Los Angeles County, or city of Santa Clarita, Malibu, or Westlake Village:

• These areas and cities are all handled by Los Angeles County Treasurer and Tax Collector
• Referred to as Business License
• Unlike other cities, this is not for taxation purposes, and not all businesses need a business license
• Only required for businesses that conduct a business activity that may have an “impact on the health, welfare or safety of the public”

For other cities, check with your local government about business licenses (see here if you are not sure which city you are in).

Do I need a California business license?

There is no such thing as a statewide “California business license.” Business licenses are handled by cities and counties.

What is considered “doing business” in Los Angeles?

You are generally considered to be doing business in the city of Los Angeles if your business is physically located within city limits (see What City Am I in?). If you do not have a physical location, but you live in the city of LA and work from home or a co working space, you likely qualify.

Do freelancers or independent contractors need a business license in Los Angeles?

Yes. Freelancers and independent contractors are essentially their own business. See our Guide to Freelancer Law for more.

How do I get a business license for the city of Los Angeles?

There are 2 options for obtaining a business license in the city of Los Angeles:

1. Submit the guided online form: This method gives you a temporary business license right away.

2. Fill out the regular form and email or mail it.

If I get a business license, is that all I need to operate legally?

Not necessarily. There are other licenses and permits you may need. See our Do I Need to Register My Business?

Further Resources

See more about business law at our Guide to the Law for Entrepreneurs and Business Owners.

See more FAQs on Los Angeles business licenses at Finance.Lacity.gov