Who is required to have a Business License?

A valid Business License is required for all entities doing business within city limits.  This includes businesses located within Palm Springs as well as businesses located outside the city limits that conduct business activity within Palm Springs. The requirements also apply to home occupation businesses operating out of an in-city residential address, and businesses utilizing workspace or virtual office space within an existing in-city business.

Are there any exceptions?
Those businesses specifically exempted by State or Federal statute. Please see the Palm Springs Municipal Code, Chapter 3.48 for further information.

What are the Federal, State, and County requirements I need to take care of prior to starting a Business License Tax Application with the City?

It is important to familiarize yourself with the requirements that will need to be completed prior to submitting your application. The California Governor’s Office of Business and Economic Development website provides a list of requirements based on your location and type of business. This tool can be found at the following link:  http://www.calgold.ca.gov/.

The following is a list of information you will need to gather to prior to completing your application:

• Federal Tax ID (TIN) or Employer ID (EIN) number. This number is required for all types of ownerships except individual. If you are an individual owner, please provide a valid State Driver’s license number on your application.For information on obtaining a TIN/EIN number, please visit the following link:https://www.irs.gov/.

   

• Business Entity Filing with the State (California Secretary of State). The State maintains records and provides information to the public relating to business entities (corporations, limited liability companies, partnerships, and other business filings). If required for your type of business, please include your State Entity Number on your application. For more information, please visit the following link:https://www.sos.ca.gov/business-programs/business-entities/

   

• Fictitious Business Name (FBN) or Doing Business As (DBA) statement.This statement is required if the business name does not include the owner’s surname (last name) or if it contains words suggesting the existence of additional owners. A Fictitious Business Name Statement is filed with the Riverside County Clerk’s Office (in Palm Desert or Riverside). If the County determines that the statement is required, you will need to provide a copy with your application.For more information, please visit the following link:https://www.asrclkrec.com/fictitious-business-names.

    

• Standard Industrial Classification (SIC) Code. Due to reporting requirements under California State Senate Bill 205 (SB 205), a SIC Code will be required on all applications. A SIC Code is used as a way to standardize business classifications and descriptions. You can look up the SIC code based on your type of business by visiting the US Department of Labor Occupational Safety and Health administration website:https://www.osha.gov/pls/imis/sicsearch.html.

   

• California State Water Resources Control Board. Per California State Senate Bill 205 (SB 205), businesses with certain Standard Industrial Classification (SIC) Codes are required to demonstrate enrollment and possession of a National Pollutant Discharge Elimination (NPDES) storm water permit, if required.You can compare your business SIC Code to the list of impacted codes by visiting the following link: https://www.waterboards.ca.gov/water_issues/programs/stormwater/sicnum.shtml. If it applies, please provide your Waste Discharge Identification (WDID), Notice of Non-Applicability (NONA), or No Exposure Certification (NEC) number on your Business License Tax Application.For more information on SB 205 permit requirements, please visit the following link: https://www.waterboards.ca.gov/water_issues/programs/stormwater/sb_205_business_license_requirements.html.

   

• California State Board of Equalization Seller’s Permit.If your business intends to sell or lease tangible personal property, you will need to obtain a Seller’s Permit.For more information, please visit the following link:https://www.cdtfa.ca.gov/taxes-and-fees/faqseller.htm.