Oct 2010 15

Cathedral City California Requires Business License for Work from Home Occupations

Off I-10 in Southern California, in the desert community of Cathedral City, local government has applied a blanket approach to business licensing.  City level business licensing isn’t unique to Cathedral City.  However, Cathedral City requires virtually all businesses to be licensed, including home based businesses.

A Home Occupation License costs $40 annually, and applicants must appear in person to discuss their business with Planning staff. Once approved, a license is usually activated within 7 to 14 days.

Other businesses in Cathedral City are also required to obtain a business license.  Some noteworthy highlights regarding the licensing process include…

  • Business licenses aren’t transferable to a new owner if the business is sold.
  • Cathedral City considers the business responsible for the renewal process.  Penalties can be incurred for late renewals even if the business has not received a renewal notice.
  • Real Estate Brokers operating in Cathedral City without a fixed place of business in town must pay $137.50 per year plus $25.25 per sales person per year.
  • Most businesses pay license fees based on the business’ gross receipts.  This includes:  auto mobile repair and services businesses, beauty shops, accounting firms, and many others types of businesses.
  • For Home Occupation businesses, no part of the business may be conducted outdoors.
  • A Cathedral City Fire Department permit may also required.  For instance, businesses engaged in dust producing operations are required to obtain a special permit.

 

If you conduct business in Cathedral City, you may wish to visit the city’s government website to identify and understand local business license compliance rules.

Steve Elias, Team Leader-Business License Research Team, Corporation Service Company

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