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Business License

Show All Answers

1. Who needs a business license?

Any entity or person who conducts any business, trade, profession, enterprise, establishment or occupation within the city needs a business license whether or not the physical business address is in or outside of the City. Steps for obtaining a Business License.

2. When should I apply for a business license?

Businesses with a physical location in the City should apply within 30 days of the move in date.

Out-of-city businesses should apply before doing any work within the city limits.

3. Do I need to apply in person?

If your business is physically located in the City, it's best to apply in person. However most of the process can be handled by email, provided the application is complete and payment for both the inspection and business license tax has been made.

In most cases, if your business is located outside of the City limits, your business license can be processed by mail.

4. How much does it cost?

The rates vary. For a complete list rates, refer to the fee rate table in the "Obtaining a Business License - In City Address" or "Obtaining a Business License - Out-of-City" page.

5. Are there penalties for not obtaining a business license?

Yes. Conducting business in the City without first obtaining a business license can result in penalties and citations.

6. My business location was inspected, but it did not pass inspection. What do I need to do?

Obtaining inspection approval is an important step towards obtaining a city business license, if you did not get an approval on your inspection; this means there were items that require correction.

The inspector will leave you a correction notice or write the corrections directly on your copy of the inspection application.

To obtain the inspector’s approval signature, the business owner or representative needs to make arrangements to have the corrections made. When all corrections have been done, a re-inspection appointment must be made.

The re-inspection appointment request lets the inspector know the corrections are done and the location is ready for re-inspection. There is no charge for the re-inspection.

7. How do I schedule a re-inspection?

1. Call the Inspection Appointment Line (323) 722-4805 and ask for extension 2299
2. Please speak clearly and slowly and state:
Business Name
Business Address
Your Name and Call Back Number
State you are calling to request a re-inspection for a business license
3. An inspector will go out the next day to conduct the re-inspection
4. Someone must be at the location to let the inspector into the building.

8. What if I move to a new location within the City?

If your business moves to a new location within the City, a new business license is required. For licensing information, refer to the "Obtaining a Business License - In City Address" page and go through the steps to download the forms.

A business license is not transferable.

9. What if I have a current business license and establish a separate business from the same location?

A separate business license is required for each entity or business operating from the same location. For licensing information, refer to the "Obtaining a Business License - In City Address" page and go through the steps to download the forms.

10. What if I expand my business to another location(s) within the City?

A separate business license is required for each branch or separate place of business that is a part of any licensed business within the City. For licensing information, refer to the "Obtaining a Business License - In City Address" page and go through the steps to download the forms.

11. Are there different requirements for home-based businesses?

Yes. Businesses operating from a residence within the City need to first obtain a Home Occupation Permit from the Planning Division. Once you have a Home Occupation Permit, you may fill out a business license application to obtain the business license.

12. Do non-profit organizations need a business license?

All non-profit organizations must obtain a business license and are subject to the City's business license requirements. For licensing information, refer to the "Obtaining a Business License - In City Address" page and go through the steps to download the forms.

13. What other things may I need?

You may need a:
Seller's Permit from the State Board of Equalization if you sell or warehouse merchandise

Health Permit from the Los Angeles County Health Department if you handle or store food

Liquor License from the Department of Alcoholic Beverage Control and a City Conditional Use Permit if you sell or serve alcohol

Federal Tax ID# from the Internal Revenue Service if you have employees, are incorporated, or have a registered partnership

California State License# if your profession requires a license from the state, (e.g. manicurist, chiropractor)

14. What if I shut down my business or move away?

Let us know in writing. If you don't close your business license, you will be billed each year for business license tax owed to the city (including penalties and interest) .

Send us a letter or email buslicdiv@ci.commerce.ca.us and provide the following information:

Business license number
Business name and address

Your name, title and phone #
The reason for closing the license (e.g. moved to new address, went out of business)
Date you closed or moved out
Address of your new location

15. Why is the City asking for my 3rd quarter wage and withholding filing with the California Employment Development Department?

It's important for businesses to know which employees and period to report when calculating the business license tax. For certain businesses, the annual business license tax is partly based on the number of employees used in the conduct of business for the Commerce location for the month of September of year specified on your renewal notice.

This is how we verify the accuracy of both the information reported and calculated business license tax.

16. Who is considered an Employee for Business License tax purposes?

Our municipal code defines employee as "any individuals engaged or used in the conduct of business, including all individuals actively participating in the conduct of such business at the premises occupied by the applicant, whether as owners, partners, managers, employees, leased employees or individuals utilized through a temporary personnel agency or service" (including employees who telecommute).

17. The quarterly wage and withholding filing contains confidential information. Why is the City asking for confidential information?

We understand your concerns about confidentiality. The City does not need the social security number of your employees.

Please cover up this information before you sent it. The information provided is destroyed soon after it is reviewed.

18. My business has various locations in California. The wage and withholding filing (DE9C) does not provide a breakdown by location. Do I still need to submit it?

Businesses with multiple locations need to submit both the DE 9 (not DE9C) and multiple worksite filing for the 3rd quarter of the year requested. The multiple worksite filing does provide the employee breakdown by location.

The Employment Development Department requires a multiple worksite filing for businesses with at least 10 employees at one of the locations.

If you currently do not file a multiple worksite report, a referral will be made, and the California Employment Development Department may contact you.

19. Do I need to report part-time, seasonal, temporary, leased, contract, sales or field employees?

Yes. All employees engaged in or used in the conduct of business for the Commerce location must be reported, whether as owners, partners, managers, leased employees, field employees or individuals used through a temporary personnel agency or service (including employees who telecommute).

20. Do I need to report employees that worked only a day or two?

Yes. All employees engaged in or used in the conduct of business in September for the year requested, should be reported.

21. Where do I obtain a copy of the wage and withholding filing?

The wage and withholding filing is usually handled by your payroll department.

If your business uses a third-party payroll company, ask them for a copy of the Statement of Deposits and Filings. If your company has several locations in California, you also need to ask for the filed multiple worksite return.

22. I don't file a return with the Employment Development Department (EDD). What should I do?

If you are a sole proprietor, you are not required to file a return with the Employment Development Department. If this is the case, please notify us by email at buslicdiv@ci.commerce.ca.us

If you are exempt from filing a wage and withholding return with the EDD office, please email a brief statement with the reason for the exemption.

23. What happens if I don't provide the requested information?

The business license will not be issued until the requested information is received by the Business License Division. The City may also exercise its right to conduct an audit and/or inspect the premises.