FAQ Topic: Tax Holiday Program General FAQs

Do I need a business license if I operate a commercially-based or home-based business specifically exempted by State or Federal Law?

No business license tax or other administrative fee is required for the operation of a commercially-based or home-based business specifically exempted by State or Federal Law. Supporting qualifying information establishing your business as specifically exempted must be furnished. A “Fee-Exempt” administrative business license shall be issued to qualifying exempted businesses.

Do I need a business license if I operate a commercially-based or home-based nonprofit business, organization, or institution?

Yes, if you operate a commercially-based or home-based nonprofit business, organization, or institution, you are required to secure a “Non-Profit” Business License. Information supporting qualification of your business as a “non-profit” must be furnished. No business license tax (other than an administrative application processing charge) shall be applied with respect to any bona fide nonprofit … Continued

My business entity (Corporation, LLC, Partnership, LP, etc.) is dormant/passive and it is just paying a minimum tax to the Secretary of State. Is it required to get a business license?

Yes, if your business is registered as “active” with the California Secretary of State and is reporting on a business return to the FTB and IRS from a Santa Ana location, it will need a business license. Maintaining a business entity within the City, whether it is transacting public business or not, is considered operating … Continued

I am a Transportation Network Company Driver (Uber, Lyft, Etc.) based out of the City of Santa Ana, but I do business throughout Southern California. Do I need to get a business license?

Yes, if you are a Transportation Network Company Driver based out of the City of Santa Ana receiving a 1099 Form, you must obtain a flat rate City Santa Ana Business License as an independent contractor. Note: once licensed in your home-based city you are not required to obtain a business license in the other … Continued

I am an independent operator performing services in association with a licensed Santa Ana business, or nonprofit organization or government agency. Do I have to get a separate independent business license?

Yes, engaging in business in association with, or performing services for, or in the name of a licensed Santa Ana business or nonprofit organization, or government agency does not relive separate business entities, independent contractors, consultants or other self-employed individuals from the requirement to obtain a separate independent City of Santa Ana Business License.

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