Bookkeeping Permit Requirements in Los Angeles, CA

Complete permit and license guide for starting a bookkeeping in Los Angeles, Los Angeles County, California.

Verified 2026-08-27 7 stops $150–$450 est. 1–3 weeks to register business and obtain all required licenses
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Not legal advice. Requirements may change — always verify with your local government authority before applying. Key agencies and fees on this page were re-checked against official government sources on .

Federal — start here

2 stops

  1. EIN (Employer Identification Number)

    Required if you have employees or operate as an LLC or corporation. Free from the IRS, obtained instantly online. Sole proprietors without employees may use their SSN, but an EIN is recommended for privacy and professional credibility.

    Official government source

    FreeImmediate (online application)

  2. IRS Preparer Tax Identification Number (PTIN)

    Required for any paid preparer who prepares or assists in preparing federal tax returns for clients. If your bookkeeping practice includes any federal tax return preparation, you must obtain and renew your PTIN annually. Bookkeeping-only services (no tax return preparation) do not require a PTIN.

    Official government source

    FreeImmediate (online at IRS.gov)

State of California

3 stops

  1. California Business Registration

    LLCs/corporations register with the California Secretary of State (bizfileonline.sos.ca.gov). Sole proprietors using a trade name file a Fictitious Business Name statement with the county clerk (county-level only in California). Note: LLCs and corporations owe California's $800 annual minimum tax to the FTB.

    Official government source

    $70 (LLC Articles) or $100 (corporation Articles) + $20 Statement of Information (LLC, biennial; corp $25 annual) + $800/year CA minimum franchise/annual LLC tax1–5 business days (online filing)

  2. California Tax Education Council (CTEC) — Tax Preparer Registration (if applicable)

    California requires paid tax preparers who are not CPAs, enrolled agents, or attorneys to register with CTEC annually. If your bookkeeping services include preparing individual or business income tax returns, you must register annually. Bookkeeping-only services (recording transactions, reconciling accounts, generating financial statements) that do not involve tax preparation are generally exempt.

    Official government source

    $33/year CTEC registration + $5,000 surety bond (premium typically ~$25–$35/yr) + 60-hr qualifying education (new) / 20-hr CE (renewal)2–4 weeks (application and background check)

  3. California Sales/Use Tax Registration (if applicable)

    Bookkeeping/accounting services are professional services and are not subject to California sales tax. A CDTFA seller's permit is required only if you sell tangible goods (e.g., software on physical media, printed materials).

    Official government source

    FreeImmediate–1 week (online)

City of Los Angeles / Los Angeles County

2 stops

  1. Los Angeles Business Tax Registration Certificate (BTRC)

    All businesses operating in the City of Los Angeles must register with the Office of Finance for a Business Tax Registration Certificate (BTRC) — LA's equivalent of a business license. Registration is free; the obligation is an annual business tax based on gross receipts. Businesses with worldwide gross receipts of $100,000 or less owe $0 tax under the Small Business Exemption if the annual renewal is filed on time. Note: the first year is not tax-exempt; first-year tax is paid as 'back tax' at the first renewal.

    Official government source

    $0 to register; annual tax gross-receipts-based ($0 if worldwide gross receipts are $100,000 or less and renewal is filed on time)1–2 weeks

  2. Los Angeles Home Occupation Rules (no permit required)

    The City of Los Angeles does not require a home occupation permit. Home-based businesses are allowed by right in residential zones if they meet the city's home-occupation conditions: no visible commercial activity or signage, at most one non-resident employee, no more than two deliveries/pick-ups per day, no commercial vehicles parked or stored on site, no mechanized equipment atypical of a residence, and no more than one client visit per hour (8 a.m.–8 p.m.). Businesses that cannot meet these conditions need commercial space.

    Official government source

    Free (no permit exists; compliance requirement only)1–3 weeks

Terminus

Open for business — est. $150–$450 · 1–3 weeks to register business and obtain all required licenses

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