Every Los Angeles business must obtain a Business Tax Registration Certificate and pay annual tax based on its assigned classification. Roughly thirty classifications scale rates by gross-receipts type.
LAMC §21.41 et seq. requires every person engaged in business within the city to register with the Office of Finance and renew annually. Common classifications include Wholesale Sales (LGR1), Retail Sales (LGR2), Multimedia (LGR3), Professions and Occupations (LGR4), and Personal Services. Each carries a different rate per $1,000 of gross receipts. A small-business exemption excuses businesses with worldwide gross receipts of $100,000 or less from paying tax, though they must still register and file. New businesses receive a one-year tax holiday on their first registration.
Operating without a current BTRC triggers penalties of up to 40 percent of the tax due, monthly interest, and possible cease-and-desist orders from the Office of Finance.
Los Angeles, CA
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Los Angeles, CA
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See how Los Angeles's business tax classification rules stack up against other locations.
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