It’s a new year, and that means tax season is soon upon us. One thing new business owners in Los Angeles should keep in mind is that you must pay the City of Los Angeles business tax (which is based on a percentage of your annual revenue) or apply for an exemption.
New and emerging business owners may qualify for an exemption based on the category of business you operate and your annual revenue.
Nevertheless, every person who engages in business within the City of Los Angeles must obtain a Tax Registration Certificate or apply for an exemption no later than February 29, 2016 (February 28 in non-leap years). (The filing is due January 1, but you have until February 29 to file. After February 29, the filing is considered delinquent and you may lose your exemption eligibility.)
If you have questions about the city business tax, contact an attorney for more information. And if you don’t operate a business in the City of Los Angeles, you should investigate local and municipal codes that might apply in your community.