A Guide to Establish and Conduct a Business in Anaheim, California

This guide is provided as a public service to assist those persons interested in establishing and conducting a business in the City of Anaheim.  It is not warranted to be all-inclusive.  Any errors or omissions herein will not relieve the business owner of his/her responsibility, obligation or liability in fulfilling all legal requirements.

WHO NEEDS A BUSINESS LICENSE?  Any individual, corporation or sole proprietor who wishes to conduct a business within the City of Anaheim must secure a business license.  City law states that no person shall engage in business or transact and carry on a business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so or without complying with any and all applicable provisions of Title 3 of the City ordinance relating to business license. (A separate license is required for each branch or location of business.)

EXCEPTIONS:  Those businesses specifically exempted by State or Federal statute.

BEFORE YOU APPLY.  Contact our office to discuss the details of your particular business operation.  Inquire about city zoning requirements for your type of business and its planned location.  This information can be obtained from the Planning/Zoning Department.  (714) 765-5139.  In addition to obtaining the business license, you must also comply with all City, County, and State regulations for zoning, building, health and safety.

Business license application forms are available at:

City of Anaheim
Business License Division
200 S. Anaheim Blvd., 1st Floor
Anaheim, CA  92805

(forms can be mailed upon request or you may apply online at www.anaheim.net)

Your business activity may require a Seller’s Permit (Retail Sales Tax Number) from the State Board of Equalization.  To obtain such a permit, you must apply in person at one of the local district offices.  You may wish to contact them by telephone first to determine if your business requires such a permit.  (714) 558-4059 or visit their website at http://www.boe.ca.gov/contact.htm

Contact the Internal Revenue Service for a Federal Employer Identification Number.  The IRS will provide a Businessman’s Kit, seminars for new businesses, additional information and forms.  (800) 829-1040 or download an application for an Employer Identification Number at http://FTP.fedworld.gov/pub/irs-pdf/fss4.pdf.

Contact the State Employment Development Department - Division of Audits.  To obtain a State Employer Identification Number if you have employees and withhold State Income Tax, Disability and Unemployment Insurance.  http://www.edd.ca.gov/.

Concerning your insurance requirements, such as liability and workers’ compensation, contact your insurance agent for information about your particular kind of business.

Contact the Alcoholic Beverage Control Board if you plan to sell or serve alcoholic beverages.  (714) 558-4101 or visit their website at http://www.ABC.ca.gov.

Contact the Franchise Tax Board if you intend to have employees or to obtain a Form 540 for estimating State Withholding Tax for yourself.  (800) 852-5711 or visit their website at http://www.FTB.ca.gov.

FICTITIOUS NAME OR DBA (DOING BUSINESS AS)

Fictitious Name and DBA are one in the same. If you are using a fictitious business name, contact the County Clerk’s Office and your local newspaper, with regard to publication of notice, etc.   You may wish to contact them by telephone first.  (714) 834-3005.

STEPS IN LICENSING

Read the application thoroughly.  All sections of the application form should be completed.  Business name, business location, business mailing address.  It is important to be specific in your business description.  Starting date at this location.  State whether your business is owned solely by you, whether it is a partnership, a corporation, or some other type of ownership.  The names and home addresses of the owners or officers of the corporation are required.  The following information must also be included prior to the acceptance of the application:

1.       Board of Equalization Sales Tax Account Number (Resale #)
2.       Social Security Number
3.       Driver’s License Number
4.       Federal Employer I.D. Number
5.       State Employer I.D. Number
6.       State Contractor’s License Number (if applicable)
7.       State Contractor’s Classification (if applicable)

Is this a new business?  Change of Ownership?  Business name or address change? 

PENALTIES:  Any business which operates a business without first obtaining a Business License or which fails to pay a renewal shall pay a penalty of 10% or $10.00 whichever is greater for each month delinquent and an additional amount equal to one and one-half percent (1-1/2%) thereof per month calculated from the first day of delinquency to the date of payment.

APPLICATION PROCESSING FEE:  A minimum charge is required for the processing of any initial or renewed license application.  This shall be in addition to the business license tax and will not be prorated.  The processing fee is non-refundable.

ZONING INFORMATION:  Do you know in what zone your business will be located?  Is this business permitted in this zone?  Are permits required?  Contact the Planning/Zoning Department.  (714) 765-5139

HOME OCCUPATION BUSINESS:  Every business conducted from a home in the City of Anaheim must have BOTH a city business license and a home occupation permit.  Home occupation permits are obtained from the Business License Division.  It must be submitted with your business license application.

PREPARATION OR SALE OF FOOD:  If your establishment intends to prepare and/or sell food of any type, you must complete an application for Health Permit here at our office.  The Orange County Health Care Agency can answer questions regarding your permit.  (714) 667-3600 or visit their website at http://www.oc.ca.gov/hca.

VENDING MACHINE, JUKE BOXES,

AMUSEMENT AND GAME MACHINES:  If you intend to install and provide either vending or amusement machines as part of your business establishment, you must list the type of machine and serial number of each.  Each machine must be labeled as to owner, business address and business telephone number.

SALE OF FIREARMS OR AMMUNITION:  If you intend to engage in the sale of firearms or ammunition, contact the Federal Bureau of Alcohol, Tobacco & Firearms.  All necessary and appropriate permits, certificates and licenses must be copied and attached to your application.  (714) 836-2946.

ADVERTISING, HANDBILL DISTRIBUTOR, SOLICITORS:  Advertising pamphlets may be distributed in this city after a license has been obtained.  None of these may be placed in or on a mailbox, mail slot, or receptacle unless postage is paid and delivery is made by the U.S. Postal Service.

SIGN REGULATIONS:  The City of Anaheim has a sign ordinance.  If you plan to install a new sign, or make changes in a sign which has been installed previously, please contact the Planning/Zoning Department.

DISPLAY OF BUSINESS LICENSE:  All business licenses must be displayed on the premises.  For those not having a fixed business address, the license must be physically carried on the person and presented upon request.

BUSINESS LICENSE TRANSFERS:  A business license is not transferable.  The certificate is terminated when business ownership changes.  Advise the Business License Division should you relocate or terminate your business for any reason.

RENEWAL OF BUSINESS LICENSES:  Once you have obtained a license, a renewal will automatically be forwarded to you thirty (30) days before your expiration date.  If you do not receive a renewal notice, please contact the Business License Office.  Failure to receive a renewal notice does not relieve the business owner of his/her responsibility in renewing the business license nor are grounds for waiving any penalties or interest.

CHANGE OF BUSINESS ADDRESS IN THE CITY:  To process a change of business address, advise the Business License Office and request an application form to file an address correction or complete the on-line application. 

LAW ENFORCEMENT REVIEW:  Business license applications received for the following categories will be referred to the Police Department for regulatory review and approval if required:

            Pawn Shop                                           Weapons-related businesses
            Bingo Permits                                       Adult Book Stores
            Palm Readers                                       Dating or Escort Services
            Taxi Drivers                                           Fortunetellers
            Special Events                                      Arcades
            Amusement Devices                              Security & Guard Companies
            Pool Rooms                                          Alcoholic Beverage Locations
            Tow Trucks-Private Property                   Tattoo Parlors             
            Impounds                                              Massage Parlors           

           

BUSINESS FEE INFORMATION

Please read the following business categories to distinguish which category coincides with your primary business activity. When you locate your business category, please follow the instruction to input your fees.

Manufacturing/Wholesaling - Conducting, managing or carrying on a business consisting mainly of manufacturing, packing, processing, carrying or selling at wholesale any goods, wares, merchandise, or produce. Select Fee Schedule 3081A – Gross Receipts (MFG/WHSLE). Under Description Line 1 Select “Gross Receipts” then under GR/VALUE enter your actual or estimated annual gross receipts amount.

Retailing - Conducting, managing or carrying on the business consisting mainly of selling at retail. Select Fee Schedule 3081B – Gross Receipts (RETAIL). Under Description Line 1 Select “Gross Receipts” then under GR/VALUE enter your actual or estimated annual gross receipts amount.

Dwelling/Hotel/Motel/Transient Occupancy Facilities - Conducting or operating a place for dwelling, sleeping or lodging including hotels, motels, bed and breakfast inns, and RV parks. Select Fee Schedule 3081C – Gross Receipts (HOTEL/MOTEL). Under Description Line 1 Select “Gross Receipts” then under GR/VALUE enter your actual or estimated annual gross receipts amount.

Recreation/Entertainment/Amusement Establishments - Businesses providing entertainment, recreation, or amusement services including amusement parks. Select Fee Schedule 3081D - (ENTERTAINMENT). Under Description Line 1 Select “Gross Receipts” then under GR/VALUE enter your actual or estimated annual gross receipts amount.

Telephone services - Every person engaged in the business of providing telephone services. Select Fee Schedule 3081F – Gross Receipts (TELEPHONE). Under Description Line 1 Select “Gross Receipts” then under GR/VALUE enter your actual or estimated annual gross receipts amount.

Professions - Every person engaged in a profession or vocation licensed by the State, related to a licensed profession and/or requiring a period of specialized training. Select Fee Schedule 3121 – Professional Services. Under Description Line 1 Select “Profession-Owner,Partner,Officer” then enter the number of practicing owners (if there are none then enter 1 for the business itself). Under Description Line 2 Select “Professional Employees” then enter the number of professional employees (state licensed). Under Description Line 3 Select “All Other Employees” then enter the number of employees not mentioned above (e.g.-clerical staff).

Services - Every person engaged in the business of providing personal service or any service or maintenance, improving or repairing whether or not such business is conducted from premises, vehicle or mobile location. Select Fee Schedule 3122 – Services. Under Description Line 1 Select “Employees” then enter the number of employees (excluding the owner) under GR/VALUE.

Contractors - Any person who is licensed through the State of California and who submits a bid to or does any development or improvement.  Also includes subcontractors and specialty contractors. Select Fee Schedule 3162 – Contractors All “C” Classes or 3162A – Contractors General “A” or “B” Classes. Under Description Line 1 Select “Flat Fee”.

Rental of Apartments - Every person conducting, managing or carrying on the business of operating an apartment house containing 5 (five) or more apartments. Select Fee Schedule 3441 – Apartment Rentals (5 or more units). Under Description Line 1 Select “Units” then enter the number of apartment units under GR/VALUE.

Rental of Non-Residential Property - Every person Renting/Leasing any Non-Residential property including commercial spaces, office buildings, warehouses and industrial spaces. Select Fee Schedule 3442 – Rental Non-Residential Property. Under Description Line 1 Select “Square Footage” then enter the square footage under GR/VALUE.

Amusement Devices - Every person engaged in the business of renting, leasing or maintaining any game or amusement device. Select Fee Schedule 3801 – Amusement Room. Under Description Line 1 Select “Amusement Room” then enter 1 under GR/VALUE. Under Description Line 2 Select “Pool Tables” then enter the number of pool table if any under GR/VALUE. Under Description Line 3 Select “Amusement Machines” then enter the number of amusement machines if any under GR/VALUE. Under Description Line 4 Select “Jukeboxes” then enter the number of jukeboxes if any under GR/VALUE.

Home based businesses – If your gross receipts are less than $5,000 a year, you may qualify for a reduced business tax. This provision requires that you submit a copy of your Schedule C (from your Federal Income Tax Form). If you feel you meet this requirement, please find the applicable fee schedule number below and insert it in place of the above standard schedules.

1801A-Hobby tax (mfg/whsle)

1801B-Hobby tax (retail)
1801E-Hobby tax (miscellaneous)
1801F-Hobby tax (telephone)
1821-Hobby tax (professional service)
1822-Hobby tax (services)
1862-Hobby tax (class “c” subcontractors)
1862A-Hobby tax (class “a or b” general)

If you are unsure of your business classification, please call (714) 765-5194 for further assistance in determining the appropriate classification and fees.