How to Get a Business License in Berkeley, California

October 29, 2026

If you are starting a business in Berkeley, the phrase “business license” covers several different registrations. California does not issue a general state business license. Berkeley’s business license is the city’s business tax certificate under Berkeley Municipal Code (BMC) 9.04. This guide puts the steps in the order most owners need them, with the fees and rates the state and city publish, so you know what to budget and what to confirm.

This guide is informational content, not legal or tax advice. Confirm current figures with the agencies named here, and talk with a qualified attorney or CPA before you choose a business structure or if your situation is complex.

Start with the state: there is no statewide business license

The Secretary of State issues no business license, and the California Department of Tax and Fee Administration (CDTFA) seller’s permit is not a business license either. Every business handles three state-level items: it registers its entity with the Secretary of State, it registers with the CDTFA if it sells taxable goods, and it registers with the Employment Development Department (EDD) if it has employees. After that, it adds the licenses and permits its specific activity requires. The Berkeley business tax certificate comes after those steps.

Step 1: Form your entity with the Secretary of State

You can file online through bizfile Online, the Secretary of State’s filing portal managed by the Business Programs Division. Online filings are normally processed within about 5 business days or less. Paper filings take 10 or more business days. Expedited options are $350 for 24-hour service, $750 for same-day service if received by 9:30 a.m., and $500 for 4-hour drop-off service, which must be precleared.

• LLC: Articles of Organization (Form LLC-1), $70
• Stock corporation: Articles of Incorporation, $100
• Nonprofit: Articles, $30

An LLC name must contain “limited liability company,” “L.L.C.” or “LLC” (“Limited” may be “Ltd.” and “company” may be “Co.”). It may not contain “bank,” “trust,” “trustee,” “incorporated,” “inc.,” “corporation” or “corp.” A corporation name needs no designator. You can reserve a name for $10 for 60 days, and the reservation cannot be renewed for consecutive periods. Check availability at the name availability page.

Both entity types have a recurring filing. An LLC files a Statement of Information (Form LLC-12) for $20 within 90 days of filing its articles, then every two years during the six-month window ending on the last day of the anniversary month. If the LLC misses it, the Franchise Tax Board assesses a $250 penalty after a Secretary of State notice. A corporation files a Statement of Information (Form SI-550) for $25 within 90 days, then every year.

Plan for the franchise tax

Every LLC, LP and LLP organized or registered in California from 2024 to 2026 owes the $800 minimum annual franchise tax starting in its first year. The first-year exemption covered only LLCs formed from 2021 to 2023. An LLC whose first taxable year begins in 2027, 2028 or 2029 pays $400 in year one under Revenue and Taxation Code 17941(g)(2), so confirm that figure with the Franchise Tax Board. On top of the minimum tax, the LLC fee applies once California-source total income reaches certain levels:

• $250,000 in total income: $900
• $500,000: $2,500
• $1,000,000: $6,000
• $5,000,000: $11,790

A newly incorporated corporation or S corporation owes no $800 minimum in its first taxable year. Two structural limits also matter. California does not allow a domestic series LLC, and an LLC cannot render a licensed professional service, so licensed professionals use a professional corporation instead.

Every California LLC or corporation must keep an agent for service of process. That agent is either an individual who lives in California or a corporation holding a Corporations Code 1505 certificate. An LLC must also keep an office in California, though it need not be a place of business activity.

Step 2: Register with the CDTFA and the EDD

If you sell taxable goods, apply for a seller’s permit through the CDTFA sales and use tax page. The seller’s permit is free. Berkeley’s sales tax rate is 10.25 percent. The statewide base is 7.25 percent, and district taxes make up the difference. Resale certificates have no required form. If you have employees, register with the EDD within 15 days of paying more than $100 in wages in a calendar quarter.

Step 3: Get the Berkeley business tax certificate

The Berkeley business tax certificate, also called a business license, is an annual revenue tax. It is not a regulatory permit. Paying it does not mean the city has reviewed your business for zoning, building, fire, health or toxic issues. Those reviews are separate. You need one certificate for each location.

The certificate is required for businesses located in Berkeley or doing work in Berkeley. That includes owners of commercial rental property, owners of residential property with three or more dwelling units or five or more rental units, contractors applying for building permits, home-based businesses, street artists and vendors, and partnerships, corporations, LLCs and sole owners. Family daycare homes need no certificate under SB 234.

Before the city issues the certificate, your business must pay its taxes and fees and obtain a Zoning Certificate for a Berkeley address, or a Home Occupation permit if you run the business from home. If the address does not appear in the city’s parcel and zoning tool, you must first get an address assignment. That costs $200 and takes four to six weeks, so plan for it early.

Applications go by mail, in person or, for many classes, online. Contact the Finance Department at 1947 Center Street, (510) 981-7200, or [email protected]. Ask how long processing takes for your business class before you sign a lease or start invoicing.

Berkeley tax rates by business type

The city’s classification table sets the tax per $1,000 of income. Unless a row says otherwise, the minimum tax is $51.

Business type	Rate
Retail trade	$1.20 per $1,000 of gross receipts
Wholesale trade	$1.20 per $1,000 of gross receipts
Grocer	$0.60 per $1,000
Business, personal and repair services (BMC 9.04.160)	$1.80 per $1,000
Professional and semiprofessional (BMC 9.04.165)	$3.60 per $1,000
Entertainment and recreation (BMC 9.04.170)	$4.50 per $1,000
Construction contractor (BMC 9.04.180)	$1.80 per $1,000
Manufacturing	$1.20 per $1,000 of value added
Administrative headquarters (BMC 9.04.190)	$1.20 per $1,000 of gross payroll
Motor vehicle sales	$1.20 per $1,000
Massage	$1.80 per $1,000
Miscellaneous	$2.40 per $1,000
Street vendors and sidewalk food vendors	$1.20 per $1,000
Rental of real property, under five units	$10.81 per $1,000, $77 minimum
Rental of five or more residential units	$28.80, $77 minimum
Nonprofits	Flat $26
Solicitor or peddler	Flat $258
Vehicle for hire	$215 per vehicle
Firearms and ammunition	$150
Banks	Exempt
Cannabis receipts, January 1, 2023 to December 31, 2026	Rate of the closest business type; the table shows $1.20 per $1,000

For example, a retail business with $300,000 in gross receipts pays $1.20 per $1,000, or $360 ($300 times $1.20). The earlier cannabis medical and non-medical rates apply only to receipts before 2023. For current receipts, use the closest business type in the table.

Home occupation permits for home-based businesses

If you run a business from your home in Berkeley, you need two things: the business tax certificate and a Home Occupation permit. The permit is a zoning approval, so it is separate from the tax. Holding the certificate does not replace the permit, and the permit does not replace the certificate. This guide does not list the permit’s fee, forms or processing time, so confirm those with the Finance Department or city zoning staff before you start operating from home.

Berkeley business license renewal and late penalties

All Berkeley business tax certificates expire on December 31. Renew and pay before March 1. Many classes can renew online. If you miss March 1, a 10 percent penalty applies on March 1, plus 1 percent monthly interest. If the balance is still unpaid on April 1, a further 40 percent penalty applies, with 1 percent monthly interest on that penalty. On a $360 tax, the March 1 penalty alone adds $36.

Contractors have a special consequence. You cannot get a building permit without an active license, so a lapsed certificate can stop a project before it starts.

Other Berkeley taxes to check

The city also lists several special taxes. Ask Finance whether any of these apply to your business:

• Utility users tax
• Parking space rental tax of 10 percent, paid by customers
• Transient occupancy tax of 12 percent, including short-term rentals
• Transportation network company per-ride tax
• Sugar-sweetened beverage tax on distributors
• Empty homes tax on units vacant more than 182 days a year, from January 1, 2024 to December 31, 2034

Berkeley minimum wage 2026 and workforce rules

Berkeley’s minimum wage is $19.61 an hour from July 1, 2026, for employees who work at least two hours in Berkeley. The California state minimum wage is $16.90 in 2026 and $17.40 from January 1, 2027. That state figure comes from a secondary source, so verify it with the state Labor Commissioner’s Office before you set pay.

The Living Wage applies to city vendors. From July 1, 2026, it is $20.01 an hour with medical benefits or $23.33 without, and it covers vendors paid more than $25,000 (for-profit) or $100,000 (nonprofit). The Fair Workweek and paid sick leave ordinances also apply to Berkeley employers.

Industry licenses

A business tax certificate does not authorize a regulated trade. Contractors need a license from the Contractors State License Board, and the contractor license threshold is $1,000. Many professions are licensed by Department of Consumer Affairs boards. Look up your trade before you take deposits or sign contracts.

Fictitious business name

If you operate under a name other than your legal name, file a Fictitious Business Name Statement with the county clerk-recorder in the county where your principal place of business is. For a Berkeley business, that is Alameda County. File within 40 days of starting to do business. You must then publish the statement in a newspaper once a week for four weeks, and the statement expires after five years. The statutory filing fee is $10 plus $2 per additional name or owner under Business and Professions Code 17929. Counties charge more, and the newspaper publication fee is separate, so confirm Alameda County’s current amount with the clerk-recorder. Details are on the Secretary of State’s fictitious business name page.

Checklist: getting your Berkeley business license in order

1. Choose your entity and check the name at the name availability page.
2. File the articles through bizfile Online and name a registered agent.
3. Plan for the $800 minimum franchise tax or the first-year amount for your LLC, and confirm it with the Franchise Tax Board.
4. Register with the CDTFA if you sell taxable goods, and with the EDD if you have employees.
5. Get an address assignment if your address is not in the city’s parcel and zoning tool.
6. Apply for the Berkeley business tax certificate and the Zoning Certificate or Home Occupation permit with the Finance Department.
7. File a Fictitious Business Name Statement if you use a trade name.
8. Calendar the March 1 renewal and the Statement of Information due dates.

Official resources

• California Secretary of State, Business Programs Division
• bizfile Online
• California Department of Tax and Fee Administration
• California Small Business Development Center network, for free or low-cost advising

Check the Berkeley Finance Department’s business tax pages for the current classification table, forms and payment options before you file.

This guide is informational content, not legal or tax advice. Fees, rates and deadlines change, so confirm them with the agency named before you rely on them. For complex situations, including choosing an entity, handling multiple locations or planning a home-based business, consult a qualified attorney or CPA.