IF YOU LIVE IN THE CITY OF LOS ANGELES…

Create or renew your Creative Artist Exemption or Small Business Exemption.

Although the City of Los Angeles Business Tax is not an income tax issue, we receive countless questions regarding it by virtue of the fact that “tax” is in the name.

When you live in the City of Los Angeles and file a Schedule C on your tax return, the LA Office of Finance wants you to register as a business and pay a licensing fee which they call a “tax”. The office ONLY knows that you filed a Schedule C. They have zero knowledge of what is actually ON your schedule C. So they ask you to share your Schedule C income information in order to calculate your licensing fee, or “tax” as they call it.

HOWEVER, THERE ARE EXEMPTIONS for creative artists up to $300,000 and for all other independent businesses up to $100,000.

BUT HERE’S THE KICKER: you must file for the exemption IN ADVANCE. Yes, you read that right. (Don’t complain to us - that’s what your Congressperson is for.)

This is not an income tax issue, but since it affects many of our clients, we offer this info as a courtesy. If you live in the city of Los Angeles we urge you to get a business license exemption just in case you are paid on a 1099-NEC or in “cash” at some point in the coming year. You must sign up or renew by February 28, every year.

If you have questions, please call the
City of Los Angeles Office of Finance
310-575-8888.

SIGN UP: LA Business Sign Up
RENEW: LA Business Renewal
INSTRUCTIONS: LA Business Form 1000A instructions