A business license is taxation for the privilege of doing business in the city. Every company or person doing business or based in the City of Carlsbad is required to have a business license.
Licenses are divided into two main categories:
- Flat fee license
Generally a business dealing in a service falls into the flat fee category
- Gross receipts license
Generally, a business involving a product falls into the gross receipts category. The rate at which a business pays depends on the type of business that they engage in. Gross receipts licenses are paid per each $1,000 of gross sales per year plus a $25 base fee. The minimum business license fee of $30 is required for each license.
Note: Some business activities have special rules. Contact business licenses for fees and procedures if the business is: auctioneer, auction market, auto wrecking yard, billiards/card room, bingo, cabaret/dance, commercial motion pictures, junk yard dealer, limousine service, massage parlor, massage technician, pawnbroker, private security service, public utility, special events or taxi service.
Fees must be paid in advance. Penalties may be incurred from late payments.
Three departments review each business license: Building, Planning and Fire departments. The normal length of time for processing a license is approximately two-three weeks.
The "date business opened" is the actual date expected to start doing business within the city of Carlsbad limits.
Licenses are not transferable. If the business is sold, it is the responsibility of the seller to notify the office so the license may be closed. The new owner must apply for a new license in his/her name.
Licenses are approved for a specific location. If the business moves, notify the city office in writing and remit $1 for a new license. The license must be re-approved for the new location.
The City of Carlsbad established various zoning regulations that control the location and operation of commercial activities. A business located in the redevelopment area requires additional approvals from the Carlsbad Redevelopment Agency. A brief check with the Planning Department before signing lease agreements or purchasing commercial property may prove to be very valuable. For more information, contact the city Planning Department, 760-602-4610.