The collaborative economy is an economic model in which a host company provides an online-enabled platform to connect consumers with goods and services offered by private individuals or entities (also referred to as shared economy). Any person or entity that utilizes a hosted online platform to obtain payment for goods or services must comply with business tax requirements. Common types of platforms include, but are not limited to:
AirBnB, HomeAway, onefinestay, and AE Hospitality are a few of the several online marketplaces that enables people to list, search and book rental accommodations. These specific online marketplaces have agreed to collect and remit TOT on behalf of property owners within the City of Los Angeles who utilize their services. Some property owners may use other online marketplaces in addition to the ones listed here. Please be advised that these services will only collect and remit TOT for transactions processed through their services and will not collect and remit TOT for other online marketplaces or for rental fees collected directly by the property owner.
Business Registration for Rideshare Drivers
As independent contractors, the City of Los Angeles requires an annual Business Tax Registration Certificate (BTRC) for all rideshare drivers that live in the City of Los Angeles and drove more than 30 days in the prior calendar year. If you do not live in the City of Los Angeles, you are not required to file a BTRC with the city of LA, though you may have obligations to the city you live in.
You can register on-line or by visiting one of our service centers. Please click any of the links below.