Regulations Applicable to Business Licenses

Terms of New Business License

All business license fees are paid in advance and are due prior to the operation of the business. The license is valid for the license year established by business license classification and must be renewed annually. The expiration date of the license year is noted on the front of the business tax permit. It is the sole responsibility of the business owner to make sure that the business license is renewed annually.

Definition of an Employee

For the purpose of business license taxation in the City of Santa Ana, an employee is defined as a person engaged in the operation or conduct of any business, whether as owner or the owner’s family, partner, agent, manager, solicitor and, any and all others employed or working in connection with the business whether paid or not.

If your business has employees or to obtain a 540 form to estimate State Withholding Tax for yourself, please contact the Franchise Tax Board at (800) 852-5711 and Internal Revenue Service for your federal identification number at (800) 572-7981.

Federal Employer Identification Number

If your business is organized as a corporation or partnership, or if you engage or plan to engage employees, you will need a Federal Employer Identification Number (FEIN) for the purpose of withholding FICA taxes and Social Security taxes. To obtain an FEIN, contact the Internal Revenue Service (IRS) at (657) 247-3438 or view more information online. The nearest IRS office to Santa Ana City Hall is located at 801 W. Civic Center Dr., Santa Ana CA 92701.

State Employer Identification Number

If your business is organized as a corporation or partnership in the State of California, or if you engage or plan to engage employees in the State of California, you will need a State Employer Identification Number (SEIN) for the purpose of withholding State Income Tax, Disability and Unemployment Insurance. To contact the State Employment Development Department, call (888) 745-3886 or view more information online.

Required Insurance Coverages

Each business types carries its own risk in day-to-day operations and it is strongly advised that business owners contact insurance agents to discuss their coverage options. You may also view more information online by visiting the California Department of Insurance.

Food Services

Any business that prepares or sells food is required to obtain health approval from the Orange County Health Care Agency. For specifics or questions regarding license regulations, please contact the Environmental Health Division at (714) 433-6000.

Mobile Vending / Pushcarts

Any business or person wishing to engage in sidewalk vending must do so in accordance with the City's and other applicable regulations associated with the product or service to be sold. Please visit the Planning & Building Agency - Code Enforcement Division for more details.

Sale of Firearms or Ammunition

If you intend to engage in the sale of firearms or ammunition, you will be required to obtain a Firearm License through the Santa Ana Police Department in addition to a business license. Furthermore, a Federal Bureau of Alcohol, Tobacco & Firearms (ATF) permit and a California Department of Justice (DOJ) permit are required. Contact the Federal Bureau of Alcohol, Tobacco & Firearms at (714) 347-9100 and California Department of Justice (DOJ) for more information.

Advertising, Handbill Distributor, Solicitors Advertising

Advertising, Handbill Distributor, Solicitors Advertising pamphlets may be distributed in Santa Ana after a business license has been obtained. Under no circumstance may advertising materials be placed in or on a parked vehicle; or, a mailbox, mail slot, or receptacle unless postage is paid and delivery is made by the U.S. Postal Service.

 Display of License

The Business License Tax Receipt must be prominently displayed at the place of business. For those not having a fixed business address, the Business License Tax Receipt (or decal card) must be physically carried on the person and presented upon request.

Home Based Businesses

In some instances and under certain conditions a business may be operated in a residence. The use must be secondary to the residence and cannot have signage or merchandise displayed. Garages and carports cannot be used in conjunction with the business and only residents of the household can be employed by the business. Certain business types are prohibited from the residence and include but are not limited to automotive repairs, hair salons and medical offices.

All businesses operating from a residence must be in compliance with all zoning requirements and must obtain an approved Home Occupation Permit from the Planning and Building Agency with signed permission from the property owner.

For further information and questions, contact the Planning and Building Agency at (714) 667-2700.

Renewal Filing Extensions

You may make a written request for a thirty (30) day extension to file and pay for any annual business license renewal. Requests must be in writing and must be signed and dated. Requests may also be submitted via email and must include a signature block in lieu of a signature. Requests must be received on or before the stated due date or must carry a post-mark date of not later than the stated due date.

Refund of Business License Fees

Business License fees are nonrefundable except when overpaid or paid in error. A processing fee is charged to cover administrative costs.

Law Enforcement Review

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

  • Pawn Shop
  • Weapons-related businesses
  • Bingo Permits
  • Adult Book Stores
  • Dating or Escort Services
  • Pool/Billiard Rooms
  • Alcoholic Beverage Locations
  • Tow Trucks-Private Property
  • Tattoo Parlors
  • Arcades
  • Modeling Services
  • Check Cashing
  • Adult Theaters
  • Acupressure/Acupuncture
  • Dancing Places/Dancing Halls
  • Impounds
  • Massage Parlors
  • Spas
  • Massage Therapy
  • Reflexology

State of California Franchise Tax Board City/County Business Tax Program

The City of Santa Ana participates in the City/County Business Tax Program, administered by the Franchise Tax Board (“FTB”). Participating cities/counties provide their local business license data to FTB. In exchange, FTB completes a data match for business activity in the respective city or county. This data exchange aids FTB in finding businesses who do not file income tax returns, and cities and counties in identifying unlicensed businesses within their jurisdiction. The City of Santa Ana issues notices to unlicensed business to bring them into compliance per the Santa Ana Municipal Code. Questions regarding a recent notice you may have received may be directed to the Business Licenses Section at (714) 647-5447. Questions regarding the City/County Business Tax Program may be directed to the Franchise Tax Board.

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