The Green Bookkeeper Tip #5 February 2010:
Tip #5 City Taxes
Are you operating a home business, sole proprietorship, corporation, et al.? Have you filed all the correct paperwork?
The yearly City Business License Renewals and City Tax are due for the City of Los Angeles and Culver City March 1st. Check your local area if you live or engage in business outside Los Angeles County.
Is your home business or independent contractor work registered?
How do you know if you may be subject to the Business Tax?
LAMC Section 21.00(i) states, “If you are conducting, operating, managing or carrying on of a business within the City you would be considered as ‘engaging in business’ and subject to business tax. You must register, and file your taxes annually with the Office of Finance. Individuals, Independent Contractors and home-based businesses are also subject to this provision.”
Depending on where you live and operate your business, you may be subject to business tax in other cities within Los Angeles County as well. Other cities have their own business offices, such as Santa Monica (310) 458-8745, Beverly Hills (310) 285-2424, and Culver City (310) 253-5870 require a separate business license to conduct business within their city. You are required to pay their City Business Tax as well.
You can go online to learn more and register for the City of Los Angeles at: http://www.ci.la.ca.us/finance/
The City of LA Office of Finance shares data with the State Franchise Tax Board and penalties and late fees can be pretty pricey so make sure you are in compliance.
*Note this is a general discussion of several tax & license issues which need to be considered according to your specific situation. There are other issues to consider and Tip #5 does not purport to address all issues.
For other ways to get in the know & receive support in transforming your business and money habits contact:
Know your Numbers, Live Rich!