Great video! I was reading the LA city finance website and I’m not sure what my tax basis is. It seems its either based on total gross receipts, a percentage of gross receipts, or the number of employees. My business is located outside the city of los angeles and I do business cleaning swimming pools within the city with myself as the only employee. Can you point me in the right direction here please.
This is a great question, but not a simple answer because of the location of your business and your clients. Generally speaking, you are still subject to the tax even if your business is located outside the city of LA, but you conduct business in the city of LA.
I was a sole proprietor. But January 2019 I formed an LLC and elected to be taxed as an s-corp. Since now I am an employee of my business and my income comes to me in both wages and dividends/distribution. Will that change how I am taxed in LA City. Currently I’m in professions/occupations so I’m at the .45% tax.
If your industry classification did not change, then your tax rate will remain the same, however, you now have to update your business with the City of LA to reflect the name of your corporation as the tax paying entity.
I have registered my LLC with El Segundo and pay an annual tax with them...I do conduct business within Los Angeles areas as a freelance designer. Do I still need to register with the City of LA?
Yes, you still need to register with the City of Los Angeles if you conduct business within the city limits; however, the good news is that there is an exemption of $100,000. So if your gross receipts are less than $100,000, you will not owe a tax. BUT, you still need to register to benefit from that exemption. Also, taxes are due the end of every February.
@@araoghoorian2989 thanks. i should be good then since i am a creative artist and make under 300k. unless they have rules of what a creative artist is?
Per the LA City website, “Violations designated as a misdemeanor shall be punishable by a fine of not more than $1,000.00 or by imprisonment in the County Jail for a period of not more than six (6) months, or by both fine and imprisonment.”
ACap will not respond to comments seeking tax or financial advice. Please consult a CPA or CFP who is familiar with your individual circumstances.
thank you so much for this!! just moved to LA this year and had no idea what this was about.
Glad it was helpful!
Extremely informative video, thank you!
Thank you!
Great video! I was reading the LA city finance website and I’m not sure what my tax basis is. It seems its either based on total gross receipts, a percentage of gross receipts, or the number of employees. My business is located outside the city of los angeles and I do business cleaning swimming pools within the city with myself as the only employee. Can you point me in the right direction here please.
This is a great question, but not a simple answer because of the location of your business and your clients. Generally speaking, you are still subject to the tax even if your business is located outside the city of LA, but you conduct business in the city of LA.
I am one of the most experienced LABT consultants out there. Let me know if your business needs help.
I was a sole proprietor. But January 2019 I formed an LLC and elected to be taxed as an s-corp. Since now I am an employee of my business and my income comes to me in both wages and dividends/distribution. Will that change how I am taxed in LA City. Currently I’m in professions/occupations so I’m at the .45% tax.
If your industry classification did not change, then your tax rate will remain the same, however, you now have to update your business with the City of LA to reflect the name of your corporation as the tax paying entity.
is it possible to be charged both unsecured property tax and business license tax?
Yes, absolutely.
I have registered my LLC with El Segundo and pay an annual tax with them...I do conduct business within Los Angeles areas as a freelance designer. Do I still need to register with the City of LA?
Yes, you still need to register with the City of Los Angeles if you conduct business within the city limits; however, the good news is that there is an exemption of $100,000. So if your gross receipts are less than $100,000, you will not owe a tax. BUT, you still need to register to benefit from that exemption. Also, taxes are due the end of every February.
@@araoghoorian2989 thanks. i should be good then since i am a creative artist and make under 300k. unless they have rules of what a creative artist is?
@@renderbold You are correct, but remember that you still have to file for the license because if you don't, you will not qualify for the exemption.
What are the consequences if you completely ignore their nasty letter? Do they steal money from your bank account and put a warrant for your arrest?
Per the LA City website, “Violations designated as a misdemeanor shall be punishable by a fine of not more than $1,000.00 or by imprisonment in the County Jail for a period of not more than six (6) months, or by both fine and imprisonment.”
More information about the legal action for non-compliance can be found by visiting. finance.lacity.org/legal-action-non-compliance