A business license is taxation for the privilege of doing business in the city. Every company or person doing business or based in the City of Carlsbad is required to have a business license.
How much does a business license cost?
Flat fee license
Generally a business dealing in a professional service falls into the flat fee category. Please refer to CMC Chapter 5.08 - License Taxes.
Gross receipts license
Generally, a business involving a product falls into the gross receipts category. The rate at which a business pays depends on the type of business that they engage in. Gross receipts licenses are paid per each $1,000 of gross sales per year plus a $25 base fee. The minimum business license fee of $34 is required for each license.
What is the payment schedule?
Upon application submission and approval, an invoice will be generated. Fees are due upon receipt of the invoice. Penalties may be incurred from late payments.
How long does it take to process a business license?
Three departments review each business license: Building, Planning and Fire departments. The normal length of time for processing a license is approximately 4 - 6 weeks.
How is the "start of business" date determined?
The "date business opened" is the actual date expected to start doing business within the City of Carlsbad limits.
Can a business license be transferred to a new owner?
Licenses are not transferable. If the business is sold, it is the responsibility of the seller to notify the office so the license may be closed. The new owner must apply for a new license in his/her name.
How can the address of a business be changed on the license?
Licenses are approved for the specific location provided on your license application. If your business moves, a new application must be submitted and re-approved fort he new business location.
Under what circumstances do I need to update my business license application?
Business license holders have an obligation to update their business license application as needed to ensure that all application information remains current and truthful. See above FAQ regarding business address changes. Any other changes to the nature of the business or its activities during the course of the licensing period may have legal implications. Application updates should be made immediately to avoid violations of Carlsbad Municipal Code sections 5.04.020(D) (business licenses shall not authorize businesses that violate the city’s zoning ordinance or other ordinances), 5.04.100 (“Unlawful operation or nuisance”), and/or 5.04.160 (“Businesses, operations or uses contravening state or federal law”).
Don't make these mistakes!
Before you sign a lease, or even before you apply for a business license, make sure your type of business is allowed at the location and that you know what permits and fees might be required. The City of Carlsbad's development services manager is here to help by researching the allowed uses for different parts of town and any special permits, fees and requirements - all important information to know before committing to a space. This service is free and fast - just give us a call at 442-339-2774, or email kerry.jezisek@carlsbadca.gov.
