I just got a letter from the city of Los Angeles telling me I have to apply for a Business Tax Registration Certificate going back to 2022 and forward in the future. I cannot find any info on this on their website so I was wondering if anyone else has run into this. Evidently in 2022 I had a 1099. If I remember correctly it was for a company where I had big reimbursements that were included in the 1099. Otherwise I have never gotten a 1099.
If you live and work in LA have you gotten a business liscense? Paid city tax? Is there a minimum earnings that gets a waiver? Anyone have any info about this certificate and how much it costs.

I have no experience with it and don't live in CA, but I found this using AI:
maybe it's helpful, not sure


The City of Los Angeles requires a business tax registration certificate (BTRC) for anyone who conducts business within the city
. The tax is based on a company's worldwide gross receipts attributable to its business activities in Los Angeles.
Business tax registration certificate

Who must register: Any individual or company conducting business, including home-based and online businesses, must register with the Office of Finance. Independent contractors and gig workers are also typically required to register and report their income.
How to register: You can register for a new BTRC online via the city's Tax and Permit System. You may also need a federal Employer Identification Number (EIN) before you can register with the city.

Taxable gross receipts

The tax is calculated based on your taxable and non-taxable gross receipts.
A Small Business Exemption applies to registered businesses with worldwide gross receipts of $100,000 or less.
The tax measure, filing status, and tax liability are determined by the business's industry, such as wholesale sales or professional and personal services.

Payments and filing

Annual renewal: Business tax renewals are due by the last day of February each year.
Online payments: The Office of Finance allows you to make online payments for your tax renewals and any outstanding balances.
Forms and account updates: You can find necessary tax forms on the Office of Finance website. If your business moves, you must submit a Taxpayer Information Update Form to notify the city of the new address.

For more information

Los Angeles Office of Finance: The official city resource for business tax information.
Website: finance.lacity.gov
Phone: Call (844) 663-4411

Thanks Barefoot. I am usually great at googling and finding info but this time the url they gave me in the letter led to an old website.
If I owe nothing below $100,000 gross receipts a year mystery shopping I am good! Even the best of us does not earn that.
I will try to call tomorrow. Hoping there is no charge for the certificate.

I have been required to have a business license ever since I've been in business; even before shopping. Mine goes off of my yearly income as to how much I will pay for the licenses. I also have to pay what they call, "property tax". It's a tax I pay every year for everything I use and own in my business, such as printer, copier, desk, chair, etc. I don't pay city tax because I don't have a product. I just provide a service.

@sandyf wrote:

If I owe nothing below $100,000 gross receipts a year mystery shopping I am good! Even the best of us does not earn that.

Well, maybe a tiktokker or two! *wry smile*

Tell them you just do MONKEY business.

So anyone doing contract work needs a business license? sounds like horse poopies to me.

Strippers are contractors at the clubs they work at (many). I remember being a bouncer at a nudie bar back in the 90s. Girls were NOT employees. They paid $50 to be able to work a shift. Whatever they made, they kept. I think they were required to get some suckers to buy some drinks too like maybe 2 or 3 for the night. Doubt each stripper had a business license. But then they were not paying taxes either.

@SteveSoCal i think is in LA City. He would probably be the best expert on this board for information. I'm sure he gets all kinds of 1099s for the work he does. Maybe try sending him a PM and see if he responds.

My husband free lanced and never had a business license but then suddenly one year they contacted him to get one. I guess I should have paid more attention to what it was at the time. I saw something about them cracking down starting in 2018. I did get that one 1099 I guess in 2022 so that is what alerted them. But that 1099 included reimbursements although it was not presented as reimbursements on the 1099. I will try and call them in the morning.

@ Sandy...... I am interested in the outcome of this situation. Please update.

Called them at 9 AM....Quote: "There are 195 callers ahead of you. We are experiencing an exceptionally high volumn ......" I hung up. Called back at 11 and now there are over 300 calls ahead of me but they said they will call me back if i press 1. I am expecting to hear within the week I hope.

Edited 1 time(s). Last edit at 09/29/2025 06:14PM by sandyf.

Tip: Never call a government office on a Monday.

did you ask @SteveSoCal ?

It's worth shooting him a message and asking.

my response to Karen B(ass) would be I'll get my business license after I build my house that burned down cuz you were too busy in Ghana, Africa while the city burned.

[abc7.com]

@DRJ wrote:

Tip: Never call a government office on a Monday.

Yeah I know but I can still hope!

LOL

Update, I got my call back this morning at 7 AMish. Bottom line if they hear about you due to having filed either a schedule C or a 1099 they will eventually contact you to sign up . The certificate just asks a few easy questions. Mine is due to an erroneous 1099 with reimbursements included in 2022 with my state taxes.
So I have to register using the Business Tax Registration Certificate which for me will be free. If you earn under $100,000 per year you are exempt from paying however you still need to file. Earnings in this case include everything you have been paid including reimbursements for the year and before deductions. And every year thereafter you need to file an updated form by the end of Feb. So for 2025 I will get a letter sometime in Nov or Dec reminding me to file my update by Feb 28 (or 29 leap year). If you miss the deadline for filing the update you do get charged a penalty for late filing.
The late filing penalty applies if your penalty is over $100. It is charged for being late at $4.25 for each $1000 of gross receipts. So basically if you have gross earnings over around $25,000 you will be subject to the penalty.
The agent I spoke with indicated that I could probably be dropped if I dont get anymore 1099's however if using schedule C I might be found again.
For now I plan to fill out the form and send it in as my gross receipts so far will be exempt. If anything ever changes in this industry or I start to do fancy island retreats and cruise jobs with hefty reimbursements every few weeks I will probably never be subject to this tax but still need to file to be safe.

Seems like a big headache over nothing. Maybe you use a different address (outside LA city) for your mailings from the MSC. PIck another city like Torrance, Hawthorne, Redondo Beach, Inglewood, etc.

Doesn't make sense that they can assume your "business" is from your home address. That is an assumption on their part.

It is much easier for me to fill out the form which has a handful of easy questions on it like what is my name then to try to subvert this by some manner cooked up for that very purpose. I don't need a different address. I dont need to risk having to pay penalties because I dreamed up some diversion technique. This is not about a home business, it is about a gig economy business. The rules are explained above for those who are interested. It only applies to those living in Los Angeles and perhaps those not living here but working here.

So how does it work? They expect money from any assignments you have done because you live in the city jurisdiction of Los Angeles? Or because you did the assignments/work in the city of Los Angeles? I know you explained the $ threshold, but had you exceeded the amount, what is it based on?

Just because you reside somewhere does not mean they should be able to tax you if the work was done somewhere else. I get that they want to keep track of gig work and taxes, but that should only apply for the work ACTUALLY COMPLETED within the city. If you did all of your assignments outside the city limits, should they be able to force you to do this?

I get that it's easier to comply. It usually is and that is what they are hoping for.

Now imagine you’re working in the filming industry where everyone’s a 1099…

That’s where they make the $$.

It depends on your job in the film industry. My husband was in the film industry and but most of his jobs came thru the union he was in which is true for many in that industry. They get paid but the job althou it is free lance for many is a union job so at least in his case he did not need to pay city tax. He did a few jobs outside the union with a slightly different job title and for those he was supposed to register.
I did mention that there are cities where there is a city tax. Los Angeles does not have a city income tax but NYC where I grew up did and i think still does. I don't know how many other cities have a city income tax but there are some. This seems to be only for gig economy jobs or sole ownership for those with gross earnings over $100,000. Those who incorporate themselves and/or call themselves a business. I guess we are all mini businesses in the eyes of this city.

Ridiculous! I can't wait to get out of CA. My family have lived here a total of over 70 years...I've had it with everything.