 |
 |
City Business Tax Exemption – Registration Required
Who is Required to Register
Every person engaged in any trade, occupation, vocation, profession or other means of livelihood in the City of Los Angeles must obtain a Tax Registration Certificate (TRC).
You are considered to be engaged in business in the city of Los Angeles when you physically perform work within the City of Los Angeles 7 or more days per year.
Due Dates
Annual Business Taxes are due the first day of January each year and delinquent after the end of February.
New Business Owner Exemption
A new business (excluding certain construction businesses and previously existing businesses outside or inside of the city) can qualify for a new business exemption for up to the first two years of operation if its taxable gross receipts are less than $500,000. To obtain the exemption, an application must be filed with the City of Finance in a timely manner. Upon qualifying, a TRC and a letter of exemption will be mailed.
Small Business Owner Exemption
A small business with $100,000 or less of taxable and nontaxable gross receipts within and without the City of Los Angeles, may qualify for a small Business Exemption.
To obtain the exemption, a renewal form must be filed with the Office of Finance in a timely manner. Upon qualifying, a letter of exemption will be mailed.
Creative Artist Exemption
No tax is required to be paid by a person for gross receipts attributable to "Creative Activities" earned when that person is engaged in business as a "Creative Artist" unless the total taxable and nontaxable gross receipts from within and without the City exceed $300,000 annually.
Creative Activities shall mean activities performed by Creative Artists primarily for entertainment and/or aesthetic purposes, including assistants or professional trainees performing those same Creative Activities.
Entertainment and Multimedia Business Tax Limitations
For every person engaged in an entertainment or multimedia business, which business is located in either the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area, the total tax due at each such business shall not exceed $25,000 plus 10 percent of the amount in excess of $25,000.
Empowerment Zone – City Business Tax Reductions, Limitations, and Exemptions
After payment of a minimum business tax of $25, the amount of business tax relief to a person engaged in business at a location in the business tax economic incentive area shall be an exemption from the next $500 in business tax liability.
Tax Exempt Registration Certificates
Certain organizations, which are conducted solely for charitable or religious purposes, may be entitled to receive tax-exempt registration certificates upon application and qualification. The payment of tax is not required for engaging in such activities.
Visit www.lacity.org/finance/index.html for more information regarding Los Angeles City Business Tax.
|
|
 |
|
