PLEASE NOTE THAT EFFECTIVE JANUARY 1, 2018, THE NEW BUSINESS TAX EXEMPTION IS NO LONGER AVAILABLE.
I started a business on or after 1/1/2010. Are there any exemptions available for starting a business in the City of Los Angeles or relocating a business in the City?
LAMC Section 21.30 provides an exemption for a brand new business that is started in the City of Los Angeles or an existing business from outside the City of Los Angeles that relocates into the City. A brand new business or a business that relocates from outside the City is exempt from paying the first year business tax provided the business obtains the Tax Registration Certificate from the City by the end of the second calendar month of the business start date. A business that does not obtain the Tax Registration Certificate by this deadline cannot take the first year exemption and will be liable for the first year tax and any interest and penalties for late filing. Additionally, the City has an exemption for the second year of business provided the first year taxable gross receipts are less than $500,000 and the Business Tax Registration renewal is filed on or before the end of the February deadline of the 2nd calendar year of business.
I have opened a second business location in the City of Los Angeles this year. My first location was opened last year and I received a New Business Exemption for it. Will I qualify for a New Business Exemption for my second location?
No, your second location is not considered a brand new business based on LAMC Section 21.30 and will not qualify for the New Business Exemption. All applicable business taxes must be paid for this location.
I just started a film production company and opened my office in the City of Los Angeles. Will I qualify for the New Business Exemption?
No, a film producer as defined in Section 21.109 of the LAMC and a construction business involved in activities listed in Section 21.30 of the LAMC are excluded from the New Business Exemption and must register and pay all applicable business taxes.
I started a business before 1/1/2010 is there a third year exemption for my business?
No, the third year exemption applies to business starting on or after 1/1/2010 and before 12/31/2015.