Home » Financial Management » Business Info » Business Licenses » Frequently Asked Questions

Frequently Asked Questions


General

 
  • What is a business license?

    A business license is an annual license that allows a business to operate within the City of Long Beach. A business license is issued after the business complies with all local, state, and federal laws and regulations and once the annual business license taxes and fees have been paid. 

  • Who is required to get a business license?

    Any person or entity that transacts or carries on any business, occupation, profession, or trade in the City of Long Beach is required to obtain a business license. A business license is not required for those businesses that are exempt through State or federal laws. 

Application

 

Taxes & Fees

 
  • How much is the business license tax?

    The business license tax rate depends on the type of business you have. In most instances, the City charges an annual flat taxe and a tax per employee. For more information, see Taxes & Fees. 

  • How do I know how much I have to pay?

    Almost every business in Long Beach must pay a business license tax. However, there may be other fees that apply to your application.

    Businesses located within a Business Improvement District (BID) will have to pay an additional annual fee.

    More information can be found on our Taxes & Fees page or you may call us at(562) 570-6211 or email us at lbbiz@longbeach.gov

  • What is the $4 State-mandated fee that I have to pay each year?

    On September 19, 2012, Governor Brown signed into law Senate Bill (SB) 1186 which added a state fee of $1 to any application or renewal for a local business. The purpose of this fee is to increase disability access and compliance with construction-related accessibility requirements and to develop education resources for businesses in order to facilitate compliance with federal and state disability laws. 

    On October 11, 2017, Governor Brown signed into law Assembly Bill (AB) 1379. The new bill accomplished the following:

    • Removed the sunset provision for the CASp fee, establishing it as a permanent fee.
    • Increased the fee to $4 for six years from January 1, 2018 through December 31, 2023. The fee then reverts back to $1 beginning January 1, 2024.
    • During the six-year period of the increased fee, the municipality will retain 90% of the fees collected, remitting 10% to the State. When the fee reverts back to $1, the municipality portion will also revert to 70%, with 30% remitted to the State.

    Under federal and state law, compliance with disability access is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public. You may obtain information about your legal obligation to comply with the disability access laws at the following agencies:

  • How Much Is A Business License For An Out Of City Contractor Coming Into Long Beach To Conduct Business?

    Because you are based outside of Long Beach you will have the option of obtaining a 3, 6, 9, or 12 month license.

    Below are the breakdown of rates:

    3 months: $94.77 base tax + $4.91 per employee coming into Long Beach +  a $4 state mandated ADA fee.

    6 months: $189.54 base tax + $9.83 per employee coming into Long Beach + a $4 state mandated ADA fee. 

    9 months: $284.30 base tax + $14.77 per employee coming into Long Beach + a $4 state mandated ADA fee. 

    12 months: $379.07 base tax + $19.68 per employee coming into Long Beach + a $4 state mandated ADA fee.