Los Angeles business license: the BTRC and your books

Short answer: Yes, if you do business in the City of Los Angeles. What people call an LA business license is the Business Tax Registration Certificate, or BTRC, from the Office of Finance, and every business working in the city must get one. Some businesses also need a police, fire or tobacco permit. Unincorporated LA County uses a separate county license for certain business types.

Who this applies to

The City of Los Angeles Office of Finance runs the city's business tax. The city does not issue a separate general business license: the Business Tax Registration Certificate, known as a BTRC, is what people mean by an LA business license. The Office of Finance says all individuals or entities doing business inside city limits must get one, and it counts you as engaged in business in the city when you physically work there seven or more days a year. Santa Monica, Burbank, Glendale, Culver City and Beverly Hills are separate cities with their own rules, and some ZIP codes cross city lines, so check which city your address is actually in.

Depending on the business, the city may also require a police, fire or tobacco permit. The Office of Finance online application tells you whether one applies to you.

This page is a summary for bookkeeping purposes. The Office of Finance is the authority, and its instructions change from year to year.

The basics, from the Office of Finance

• The tax is based on gross receipts, and the amount due for a year is generally based on gross receipts from the prior year
• New businesses pay a minimum tax when they apply and report their first calendar year of gross receipts at the end of that year
• Your registration certificate does not expire, but a renewal must be filed every year
• A renewal is required even in a year with no revenue
• The small business exemption applies to registered businesses with total gross receipts, inside and outside the city, at or below $100,000, that file the renewal on time
• The city's New Business Exemption is no longer available: the Office of Finance says it ended on January 1, 2018

The renewal deadline is around the end of February or the first business day of March, and the exact date changes by year. For 2026 renewals the city listed March 2, 2026 as the last day for timely filing. Confirm the current date on finance.lacity.gov.

Unincorporated LA County: the county business license

Some Los Angeles addresses are not in any city. East Los Angeles, Altadena and Marina del Rey, for example, are unincorporated county areas, so the City of Los Angeles BTRC does not apply there. The LA County Treasurer and Tax Collector runs a separate County Business License program instead.

That county license covers only certain business types. The Treasurer and Tax Collector licenses 110 business activities that can affect public health, welfare or safety. If your activity is not one of them, you do not need a county license. The program also covers businesses in Malibu, Santa Clarita and Westlake Village.

The county license is a regulatory fee, not a tax on gross receipts. Some licenses need sign-off from other county departments, such as Fire, the Sheriff or Regional Planning. Every other city in the county, from Long Beach to Pasadena, sets its own license or business tax rules.

The county says more than 60 ZIP codes cross county and city lines, so a ZIP code alone does not tell you which rules apply. Use the county's Do I Require a County Business License tool.

The numbers the renewal asks for

The renewal asks for gross receipts for the prior calendar year. If you claim the small business exemption, you report worldwide gross receipts, and the city-only portion still goes on the worksheet. If your business has more than one tax classification, receipts may need to be split by classification.

Every one of those figures comes from your books. If they are closed and reconciled for the year, the renewal is a report you can run. If they are not, it becomes a rebuild, often in the same weeks your CPA is asking for the same year.

How to keep the books ready for it

1. Record gross, not net Book sales at their full amount and record processor fees and refunds separately. Gross receipts means the gross figure.
2. Separate city and outside receipts If you work in and outside the city, track where income was earned, for example by class or location.
3. Close December early A closed December gives you the full-year figure before the renewal window opens.
4. Keep the renewal with the books Save each year's filed renewal and confirmation with your year-end package.

Missed a renewal?

Missing the deadline can cost you the small business exemption for that year, which is one of the most common and avoidable costs for small businesses in the city. If you are behind, contact the Office of Finance and your CPA. A bookkeeper can rebuild the gross receipts figures they need.

Where bookkeeping stops

Bookkeepers prepare the numbers. Filing the renewal, choosing classifications and dealing with the city are for you or your CPA. The partner team will tell you on the call what they can help with.

Questions