Application

• File your tax registration certificate application online on the City of Los Angeles' Office of Finance website or at one of its eight locations. When you first apply, you pay the minimum tax only. When you renew your certificate, you will pay the tax based on the amount of your gross receipts for the previous year. Also, since you are taxed the same in Los Angeles for your first and second years in business, you will pay the tax for your renewal at the same time.
  
  

Renewal

• As of 2010, you must renew your City of Los Angeles business tax by February 28 of the following year. To receive any of the exemptions allowed, such as those for small businesses, new businesses or creative artists, your business tax must be paid on time or you will not be allowed the exemption. You can renew your business tax online, in person or by mail. If you send it by mail, it must be postmarked before midnight on February 28 to meet the deadline.
  
  

Late Penalties

• If your business tax renewal is not received by the City of Los Angeles Office of Finance by the deadline, you may be assessed interest and penalties. Starting March 1, you will be charged 0.3 percent in interest each month on the amount due. Also, on March 1, a penalty of 5 percent of the amount due will be assessed. Every month that passes that you do not renew and pay your tax, the penalty amount increases by 5 percent. Therefore, after April 1, you will pay a 10 percent penalty, and after May 1, it rises to 15 percent, and so on. The maximum penalty paid is 40 percent of the amount of tax due.