How to Get a Business License in Berkeley, California

Berkeley doesn’t charge a flat business license fee. Instead, the city taxes your gross receipts on a sliding scale that varies dramatically by industry. A cannabis distributor pays $25 per $1,000 of revenue. A landlord with five rental units pays 2.88% of rents. A retail shop might pay something entirely different. Get your classification wrong on the application, and you’ll either overpay or face a correction notice from the city. You also have exactly 30 days from the moment you start business activity to file — not 30 days from when you think about it.

This guide walks you through the prerequisite steps, the classification system, the calculation, and the filing process.

What Berkeley Requires vs. What California Requires

California has no statewide business license. You don’t file one with the Secretary of State. You don’t pay Sacramento an annual fee. What you do need is a state entity filing (for an LLC or corporation) and state tax registration (for sales tax, if applicable). Then Berkeley layers on its own requirement: a city business license.

Think of it as three separate obligations:

State level: Form your LLC at the Secretary of State ($70 filing fee). Get an EIN from the IRS (free). If you sell goods, register for a California Seller’s Permit (free).

City level: Apply for a Berkeley business license from the Finance Department within 30 days of starting operations.

Berkeley’s “business license” is technically a business license tax (BLT). It’s not a permit you buy once. It’s a recurring annual tax based on your business revenue, calculated using a classification system. The rate you pay depends entirely on what your business does.

The 30-day clock starts when you “commence business activity” — not when you file incorporation papers or get your EIN. If you open your doors on March 15, you have until April 14 to submit your application. If you miss that window, penalties and interest accrue.

The Prerequisite Chain

You can’t apply for a Berkeley business license in a vacuum. The city needs to know your entity structure and your tax ID. Here’s the order:

Step 1: Form your business entity at the California Secretary of State

If you’re starting an LLC, file your Articles of Organization online at bizfileOnline.sos.ca.gov. The filing fee is $70. You’ll receive a confirmation number immediately. The Secretary of State processes LLC filings in a few business days.

If you’re forming a corporation instead, the filing fee is $100. The process is the same — submit online, pay the fee, wait for confirmation.

You don’t need this to be approved before moving to the next step, but you do need a filing confirmation number to complete your EIN application.

Step 2: Get your EIN from the IRS

An Employer Identification Number (EIN) is a nine-digit identifier the federal government uses to track your business for tax purposes. It’s free. You apply at irs.gov/ein. You can apply online and receive your number immediately, or apply by phone at 1-800-829-4933.

The IRS will ask for your business name, structure (LLC, corporation, etc.), formation date, and the address where you’ll operate. Have your Secretary of State filing confirmation number handy.

You need this EIN to register for California’s Seller’s Permit (if you sell goods) and to apply for your Berkeley business license.

Step 3: Register for California’s Seller’s Permit (if applicable)

If your business sells tangible goods — retail inventory, equipment, products you manufacture — you need a Seller’s Permit from the California Department of Tax-Fee Administration (CDTFA). This is free. Register at cdtfa.ca.gov.

If you’re a pure service business (consulting, design, repair services, etc.) or a digital-only business, you don’t need a Seller’s Permit.

The Seller’s Permit registration takes a few business days. You’ll need your EIN and your business location address in Berkeley.

Step 4: Apply for your Berkeley business license within 30 days of starting operations

This is the final step in the chain. By the time you apply, you should have:

Entity formation confirmation from the Secretary of State
An EIN from the IRS
A Seller’s Permit from CDTFA (if you sell goods)
Clarity on your business classification and projected gross receipts

How to Apply

The Berkeley Finance Department, Revenue Collection unit, processes business license applications. You can submit by mail, in person, or — currently, with limitations — online.

Physical Address: Finance Department — Revenue Collection 1947 Center Street, 1st Floor Berkeley, CA 94704

Phone: (510) 981-7200

Email: [email protected]

Online portal: Limited availability as of 2026. The new digital portal currently processes renewals and new applications for rental property businesses that started in the current calendar year. For most new businesses in other classifications, mail or in-person submission is still the standard route.

Application forms are available on berkeleyca.gov. The city provides two versions: one with built-in auto-calculation fields (fill it digitally, then print and mail or hand-deliver) and one without (print first, fill by hand). The auto-calculation version reduces math errors.

The application asks for:

Your business name and legal entity structure
Your EIN
Your business location address in Berkeley
Your business classification
Your projected annual gross receipts
Your ownership information

The classification selection is the most critical field. This determines your tax rate. If you misclassify, you’ll pay the wrong amount. The city may send you a correction notice requiring you to amend and pay the difference plus interest.

If you’re unsure which classification applies to your business, call (510) 981-7200 before submitting your application. The revenue collection staff can walk you through the classification table and confirm the right category for your specific business activity. This five-minute phone call can save you a hassle later.

Understanding the Classification and Tax System

Berkeley’s business license tax is expressed per $1,000 of gross receipts. Your rate depends on your business activity classification. There is no flat fee. A business grossing $100,000 per year pays a different amount than a business grossing $500,000.

The full classification table and current tax rates are published on berkeleyca.gov at the link: berkeleyca.gov/doing-business/operating-berkeley/business-licenses/business-license-classifications-tax-rates

Here are the rates for some of the most common classifications:

Cannabis businesses: $25 per $1,000 of gross receipts. This equals 2.5% of your annual revenue. Berkeley was an early adopter of cannabis legalization and maintains a structured regulatory framework. If you’re operating a dispensary, cultivation facility, delivery service, or testing lab, this is your rate. A cannabis business with $200,000 in annual gross receipts would owe $5,000 in business license tax.

Residential rental property (5 or more units): 2.880% of gross receipts (rents collected). A rental building with 10 units collecting $60,000 per year in rents would owe $1,728 annually.

Residential rental property (3 to 4 units on a single parcel): 1.081% of gross receipts (rents collected).

Other classifications — general retail, restaurants, professional services, manufacturing, personal services, etc. — each have their own specific rates. These are not standardized across cities; Berkeley’s structure is unique to Berkeley.

How to calculate your annual BLT:

Take your projected annual gross receipts and multiply by the rate (expressed per $1,000).

Formula: (Gross Receipts ÷ 1,000) × Rate = Annual BLT

Example: You’re opening a retail clothing store in Berkeley. Your classification is “Retail Sales, General.” The rate is $1.63 per $1,000. You project $150,000 in annual gross receipts.

(150,000 ÷ 1,000) × 1.63 = 150 × 1.63 = $244.50 annually

Example: You own a four-unit apartment building. Your classification is “Residential Rental (3+ units).” The rate is 1.081%. You collect $36,000 per year in rents.

(36,000 ÷ 1,000) × 1.081 = 36 × 1.081 = $38.92 annually

These are rough estimates. The exact rate for your classification is on the city’s published table. When you call the Finance Department at (510) 981-7200 to confirm your classification, also ask them to state the current rate — rates are occasionally adjusted.

If you’re genuinely unsure whether your business fits one classification or another — say you sell a mix of retail goods and provide services — describe your revenue breakdown to the staff. They’ll direct you to the primary classification that applies.

Special Business Taxes

Beyond the standard business license tax, some Berkeley businesses owe additional special taxes. These are separate from and in addition to the BLT.

Sugar-Sweetened Beverage Tax: If your business distributes or manufactures sugar-sweetened beverages (soda, energy drinks, sweetened juice, etc.) in Berkeley, you owe 1 cent per ounce of product. This applies to the distributor or manufacturer, not the retail point of sale. A distributor shipping 10,000 ounces of soda to Berkeley retailers would owe $100 in sugar-sweetened beverage tax annually. This is separate from your business license tax.

Other special taxes may apply depending on your industry. Berkeley has historically imposed special taxes on specific business categories in response to local public health or policy priorities.

Check berkeleyca.gov for a current list of special business taxes. If your business falls into one of these categories, the application process will flag it, and you’ll file separately for that tax.

Renewal and Compliance

Your Berkeley business license is not a one-time filing. It’s an annual tax obligation.

Renewal is due annually. Most renewals become due on March 1 of each year, though the exact date depends on when you initially licensed. The city sends renewal notices to the address on file.

Beginning December 2024, some renewals are available through Berkeley’s new online portal. This is a limited rollout. As of early 2026, the portal handles renewals for existing rental property businesses. The city is gradually expanding digital filing options. Check berkeleyca.gov or call (510) 981-7200 to see if your business type is eligible for online renewal.

To renew, you report your gross receipts for the preceding calendar year. If your business brought in $200,000 in 2024, you report that when renewing your license for 2025. The city recalculates your tax based on actual receipts (not your initial projection). If your actual receipts were higher than projected, you’ll owe additional tax. If they were lower, you may receive a credit or refund.

Late renewal incurs penalties and interest. Berkeley charges a 10% penalty for late payment, plus interest accruing daily.

A separate license is required for each business location. If you open a second location in Berkeley, you file a separate application and pay a separate BLT based on that location’s business activity and projected receipts.

Report any changes to the Revenue Collection unit. If you change your business address, add a new owner, or shift your primary business activity, notify the Finance Department at (510) 981-7200 or [email protected]. These changes can affect your classification and tax rate.

The Berkeley Chamber of Commerce (1834 University Ave, Berkeley, CA 94704; (510) 549-7000) is a useful resource for newly licensed businesses. They provide information on local regulations, networking opportunities, and can connect you with other business owners navigating Berkeley’s regulatory environment.

Putting It Together: Timeline

Here’s what a realistic timeline looks like:

Week 1: File your LLC at bizfileOnline.sos.ca.gov ($70). Get your confirmation number. Apply for an EIN at irs.gov/ein (same day, online). Register for a California Seller’s Permit at cdtfa.ca.gov if you sell goods (same day, online).

Week 2-3: Confirm your business classification by calling (510) 981-7200. Have your business description, location, and revenue projections ready. Calculate your projected annual BLT.

Week 3-4 (critical): Submit your Berkeley business license application by mail or in person. You have 30 days from the date you commence business activity. Don’t wait until day 29.

Days 30+: Wait for processing (typically 1-2 weeks). The Finance Department will issue your license and send you a notice of tax liability. Pay any amounts due.

Annually thereafter: Track your gross receipts. File your renewal by the due date. Adjust your estimate based on actual business performance.

The entire process from entity formation to licensed business typically takes 4-6 weeks. The bottleneck is usually processing time at the Finance Department, not the application itself.

One final note: Berkeley’s business license tax structure is more transparent and publicly available than many cities, but it’s also more specific. Because rates vary by classification, two seemingly similar businesses can owe wildly different amounts. Spend the time upfront confirming your classification. A phone call to (510) 981-7200 is a small investment that prevents overpaying or facing a correction later.