Getting Started | Forms of Businesses | Business Taxes | Licenses & Permits

Business Taxess

Before you begin your business, you will need to obtain a business permit or license and show your intention to pay different kinds of taxes required by the government. This section summarizes the basic permit and tax certificates required for most business activities in the City of Los Angeles.

I. Federal Tax

If you employ workers, you will need an Employer Identification Number (EIN) to withhold federal income taxes from your employees' paychecks. Application for an EIN can be done in many different ways, telephone, fax, mail or online.

II. State Tax

1. State Board of Equalization

To pay the state-required business taxes, you will need to contact the State Board of Equalization office for tax assessment and pay a deposit before you start operating your business. You can call 1-800-400-7115 for more information or visit a local office. The Board of Equalization administers the California Sales and Use Tax Law as well as several different special taxes such as, the Hazardous Substances Tax, the Alcoholic Beverage Tax and the Cigarette Tax. Under the Sales and Use Tax Law, every person planning to sell tangible personal property in California must apply to the State Board of Equalization for a seller's permit. To file for a seller's permit, you need to complete a Form BT-400 called "Application for Seller's Permit and Registration as a Retailer

2. Employment Development Department

The Employment Development Department (EDD) is responsible for assisting California employers in meeting their labor needs, and is responsible for collecting employment related taxes, including unemployment insurance, disability insurance, and personal income tax withholding. For further information, contact:

Employment Development Department
800 Capital Mall, MIC 83
Sacramento, CA 95814

The Employment Development Department maintains several branch offices in the Greater Los Angeles area and all can be reached at (888) 745-3886:

Los Angeles
4021 Rosewood Ave., Suite 310, Los Angeles, CA 90004
Santa Fe Springs
10330 Pioneer Blvd., Suite 150, Santa Fe Springs, CA 90670
Santa Monica
914 Broadway, Santa Monica, CA 90401
Van Nuys
6150 Van Nuys Blvd., Van Nuys, CA 91401

3. The Franchise Tax Board

The Franchise Tax Board administers the franchise tax and net income tax from banks and corporations, and the personal income tax from individuals, proprietorships, and partnerships. Contact the Franchise Tax Board's office for more information and assistance:

The Franchise Tax Board
PO BOX 942840
Sacramento, CA 94240
Recorded Information: (800) 338-0505
General Information: (800) 852-5711

There are also local offices.

III. City Tax

The Office of Finance handles most taxes and permits required of businesses operating in the City of Los Angeles. The addresses, phone numbers, and office hours of the headquarters of the Office of Finance and its branches are listed below for your information. Some businesses require licenses and permits from other departments (such as the Police or Fire Departments). The Office of Finance website will be able to advise you on other departments. You may also want to use the City of Los Angeles 311 service, available both by telephone (311 inside the City of Los Angeles or 1-866-4LA-CITY in Southern California and (213) 978-3231 elsewhere) or online.

Main Office:
Office of Finance
220 N Spring St. Room 220, Los Angeles, CA 90012
(213) 473-5901;
Monday through Friday: 8 AM - 5 PM

Branches

IV. County Permits and Licenses

If your business is located in the unincorporated area of Los Angeles County (such as East Los Angeles) or certain cities (Agoura Hills, Calabasas, Diamond Bar, Malibu, Santa Clarita, or Westlake Village), you will need to pay business taxes to the County of Los Angeles instead of the City of Los Angeles. (If your business is located in the City of Los Angeles, the City controls and regulates most of the taxes and permits.) In addition, the County controls health and food permits, hazardous waste regulations, and other pollution regulations for all businesses inside the County of Los Angeles. Please call the County Treasurer and Tax Collector’s Office for assistance

Treasurer and Tax Collector
225 N. Hill St.
Los Angeles, CA 90012
(213) 974-2011

There are also satellite offices with limited hours open in Valencia (23757 Valencia Blvd) and Lancaster (335A Avenue K-6). Please check the website to verify which hours these offices are open.