City Of Los Angeles Business Tax Told In An Easy & The Best Way!

City of Los Angeles Business Tax Renewal — The Best Explanation!

Are you aware of the renewed instructions for the city of Los Angeles business tax? Well, there have been streamlines and updates in the renewal form for the year 2017, so that the government could give you a better experience. In the updates, the form has about seven sections as mentioned below:

1. Taxpayer Information

2. Certifications

3. Tax Reform & Incentives

4. Payment Info

5. Tax Worksheet

6. Vendor / Subcontractor / Commercial Tenant Listing

7. Information Update

A part has been explained below in detail.

City of Los Angeles business tax renewal Section 1 — Taxpayer Information

The Los Angeles city business tax renewal instructions for Taxpayer Information part has a lot of changes in it. It has to be filled with the current Legal Name, Mailing Address, Account Number, and the DBA Business Address that the Los Angeles City has on your company file. Moreover, if you are about to use a blank form for the information update for your business file in the Office of Finance, put a tick in the Change of Information box. Or if you have got a form that has already been printed with data that is no more correct, you can do the same as said above. After checking the box, fill in the corrections or the changes in the Information Update part of the Section 6.

Furthermore, the box can be checked as well as the Section 6 filled, of the city of Los Angeles business tax application, if your business has been discontinued or sold partially or completely. Other reasons why you can do it are: if you want to renew the form due to the fiscal year and you want to let them know about the start of a month of the fiscal year cycle. You can also fill this if you sold a rental asset. The Los Angeles city business tax new form allows you to do all this after checking the box and filling the section 6 with the new information.

City of Los Angeles business tax renewal instructions Section II — The Tax Incentives and Reform

In this section, you would have to fill in the city of Los Angeles business tax application for the Second Year Exemption, the Creative Activities Exemption and the Small Business Exemption.

Newly Established Business — There is a second-year exemption that is offered to the companies that have been established in the city of Los Angeles as per the year 2016. They would also have to apply for the renewal by the 28th February. Moreover, this is only possible if they have a less than the $500,000 of the total payable gross tax receipts. Furthermore, the city of Los Angeles business tax application can be filled under this context further only if the taxpayer is not one of the following:

  1. Film Producer
  2. Construction business
  3. A company that is owned in part or whole by someone who was involved in a company in the city of Los Angeles while the period of the past tax and is occupied in a business that is in the city in this tax period as well.

If you are eligible for this, you can go ahead filling the city of Los Angeles business tax application, where your taxable gross receipts should be filled in the Column D. After that, enter a “0” in the 17th line and then move to the Section 4 to the 18th line.

Creative Activities Exemption — This for the creative artists and it is applicable only if you are a creative artist and:

  1. Your renewal has been applied prior to 28th February of 2017.
  2. For the year 2016, the worldwide creative artist gross receipts are not more than $300,000.

But who is a creative artist according to the City of Los Angeles business tax application? Well, the person who works either:

  1. by a company with only one person as the shareholder and an employee, or
  2. as a single person, or
  3. by a confined mortgage company with only one person as the member and one employee.

The people who are suitable for this are art directors, production designers, actors, costume designers, announcers, etc. Visit the Tax Law Los Angeles for more details on the list.

If you have met all the criteria, then tick the box that is on the 2nd line and enter the worldwide gross receipts in the blank given.

Small Business Exemption — This is for the businesses that are small. The ones that are eligible are those that: register their renewal before the 28th February of 2017 and have a gross receipt of not more than $100,000 for the year 2016. If these are met, then check the box on the 1st line. The total amount needs to have all the activities that were both outside and inside the Los Angeles city for 2016.

The Application of Overpayment — This box can be ticked only if you own some overpayment that you want to register for the 2017 City of Los Angeles business tax renewal. Moreover, this cannot be applied if the actual payment date was about three years ago. If after all this you are still eligible, there is a box on the 3rd line that needs to be ticked and also enter the amount there. After this, minus this amount from the total amount due that you have filled on the 17th line.

To know more about the other sections and to get help with the form or application, visit the Tax Law Los Angeles. Drop by the website at today!