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How to Get a Business License in Riverside, California

If you plan to operate a business in Riverside, California, you will pay the City of Riverside business license. The city also calls it a business tax, and both names refer to the same charge. Riverside, California is not the Riverside in Illinois, Ohio or New Jersey, so the rules here apply only to the city of about 323,000 people in Riverside County.

The state does not issue a general business license. The Secretary of State issues no licenses or permits, and the seller's permit from the state tax agency is not a business license either. The city charges on a rate sheet that depends on your business class, your receipts or your headcount, so there is no single Riverside fee. This guide covers who pays, how the rates work, how to apply and renew, and which state steps to finish first.

Disclaimer: This guide is informational content, not legal or tax advice. Confirm current figures with the City of Riverside Finance Department and the state agencies named below, and talk to a qualified attorney or CPA if your entity choice or tax situation is complex.

Who Has to Pay the Riverside Business License

Every person or company conducting business in the city must pay, including retail stores, wholesale and manufacturing operations, service businesses, professionals, independent contractors, home businesses and landlords. A business based in an office outside Riverside also pays if it does work inside the city.

The tax is due on or before your first day of business. After that, it is due annually in advance, on or before the expiration date.

Step 1: Finish the State Requirements

Formation documents and an EIN are state and IRS matters, not steps on the city's page. Most businesses handle them in this order.

  1. Form your entity with the Secretary of State. Articles of Organization (Form LLC-1) cost $70. Articles of Incorporation for a stock corporation cost $100, and nonprofit articles cost $30. Online filings through bizfile Online are normally processed within about 5 business days or less. Expedited options are $350 for 24-hour service, $750 for same-day service (received by 9:30 a.m.) and $500 for 4-hour drop-off service, which must be precleared.
  2. Reserve a name if needed. A name reservation costs $10 and lasts 60 days. An LLC name must contain "limited liability company," "L.L.C." or "LLC," and it cannot contain words such as "bank," "trust," "incorporated," "corporation" or "inc." A corporation name needs no designator.
  3. Keep a registered agent and a California office. An LLC or corporation must have an agent for service of process. That agent is either an individual who resides in California or a corporation holding a Corporations Code 1505 certificate. An LLC must also keep an office in California, which does not need to be a place of business activity.
  4. File your ongoing reports. 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 its anniversary month. A corporation files Form SI-550 for $25 within 90 days, then every year. If an LLC misses its Statement of Information, the Franchise Tax Board assesses a $250 penalty after a Secretary of State notice.
  5. Plan for franchise tax. Every LLC, LP and LLP organized or registered in California in 2024 to 2026 owes the $800 minimum annual franchise tax from its first year. The first-year exemption covered only LLCs formed 2021 to 2023. An LLC also pays an LLC fee of $900, $2,500, $6,000 or $11,790 once its California-source total income reaches $250,000, $500,000, $1,000,000 or $5,000,000. An LLC whose first taxable year begins in 2027 to 2029 pays $400 in year one under RTC 17941(g)(2), so confirm that amount with the Franchise Tax Board. A newly incorporated or qualified corporation or S corporation owes no $800 in its first taxable year.
  6. Register for sales tax if you sell taxable goods. Register with the California Department of Tax and Fee Administration (CDTFA). The seller's permit is free. Riverside's combined sales tax rate is 8.75 percent, made up of the 7.25 percent statewide base plus district taxes. The resale certificate has no required form.
  7. Register with the Employment Development Department (EDD) if you have employees. The EDD handles employer registration.
  8. File a fictitious business name statement if you use a name other than your legal name. File with the county clerk-recorder in the county of your principal place of business, within 40 days of starting. The statement must be published in a newspaper once a week for four weeks, and it expires after five years. The statutory filing fee is $10 plus $2 per additional name or owner. Counties charge more than that, and publication is a separate cost.
  9. Get any industry license your work requires. Contractors need a Contractors State License Board (CSLB) license for jobs of $1,000 or more in labor and materials. Regulated professions are licensed through Department of Consumer Affairs boards, and alcohol sales are licensed by the Department of Alcoholic Beverage Control.

Step 2: Know the Riverside Business Tax Rates

The city's Current Business Tax Rates sheet covers November 1, 2025 to October 31, 2026. Under Municipal Code 5.04.300, the figures adjust automatically every November 1 by the change in the Consumer Price Index. Nothing on the sheet is permanent. The sheet resets on November 1, 2026, so check the Finance Department page for the new figures after that date.

Most rates follow the same pattern: a base amount for your class, plus an increment that rises with your gross receipts (per $1,000) or with your headcount (per person). The smallest class base on the sheet is $74.25 per day for itinerant peddlers and salesmen, and most businesses pay more than that. The main retail, wholesale and auto classes start at a $160.75 base.

Business classBase amountIncrement
Class A, retail$160.75 for the first $25,000 in gross receipts$1.14 per $1,000 up to $500,000, then $0.15 per $1,000 above $500,000 (sheet base at that level: $705.00)
Class B, wholesale and manufacturing$160.75 for the first $50,000 in gross receipts$0.47 per $1,000 up to $1,000,000, then $0.06 per $1,000 above (sheet base $614.25, maximum tax $10,478.75)
Class C, auto$160.75 for the first $50,000 in gross receipts$0.82 per $1,000 up to $750,000, then $0.09 per $1,000 above (sheet base $740.00, maximum tax $10,478.75)
Class D, vending machines with merchandise$98.50 for the first $1,000$1.29 per $1,000 above $1,000
General services$184.75 for one owner$6.00 for each additional employee, owner, partner or associate
Engineering and general contractors$397.00$6.00 for each additional
Specialty contractors$273.00$6.00 for each additional
Professional services$282.75 for one owner$283.50 for each additional professional and $6.00 for each non-professional employee
Delivery by vehicle$123.00 per vehicleFlat fee per vehicle
Itinerant peddlers and salesmen$74.25 per dayFlat fee per day
Sidewalk vendor (new operator)$32.00 for the first cart$8.00 for each additional cart. Renewal is $30.00 plus $8.00 for each additional cart.

Other fees on the sheet include a $13.50 duplicate certificate fee, a $26.00 certificate processing fee for tax-exempt businesses and a $33.00 refund processing fee. The $4 state disability access fee applies to any local license application or renewal.

Worked example: A Class A retailer with $45,200 in gross receipts pays the $160.75 base plus 20.2 increments of $1.14, one for each $1,000 above the first $25,000. That comes to $183.78. Your receipts drive the number, so a seller with a larger year pays more.

Use the figures listed on the current sheet. If your business fits more than one class, or a tier figure does not match your own arithmetic, ask the Finance Department before you pay.

Step 3: Apply Online

  1. Go to the city's online business tax system, which HdL runs for Riverside. You can apply, renew or close your account there. Start from the Finance Department page on the City of Riverside website.
  2. Enter your business details, including your activity and your class. Have the figures the rate depends on ready: gross receipts for retail, wholesale, manufacturing and auto, or owners, professionals and employees for service classes.
  3. Pay the tax on or before your first day of business. Save your account number and PIN, since the city uses them for renewal notices.

Questions go to the Finance Department at 3900 Main Street, Riverside, California, or by phone at (951) 826-5465.

Renewing Your Riverside Business License

The license is due annually in advance, on or before its expiration date. The city sends a renewal notice with your account number and PIN, and you renew through the same HdL online system. Because the rate sheet resets every November 1, your renewal amount may change from year to year, so check the new sheet before you pay. To close the business, use the same online system.

Riverside Home Business License

A home business pays the business tax like any other business. It must also meet zoning. Before you apply, ask Community and Economic Development at (951) 826-5700 whether your activity needs a home occupation permit. Paying the business tax does not answer the zoning question.

Businesses Outside Riverside City Limits

If you operate in unincorporated Riverside County, the county has no general county business license. The county's stormwater registration ordinance is a different requirement, so ask the county directly what applies to your activity. A business based outside the city that does work inside Riverside still pays the city tax described above.

What Starting a Business in Riverside Typically Costs

  • Articles of Organization for an LLC: $70
  • Name reservation, if you use one: $10
  • Statement of Information for an LLC: $20 every two years
  • Seller's permit: free
  • Fictitious business name statement: $10 statutory fee plus county and publication costs
  • Riverside business tax: starts at the class base on the sheet, $160.75 for most retail, wholesale and auto businesses, and higher as receipts or headcount grow
  • LLC minimum franchise tax for a 2024 to 2026 formation: $800 in the first year

When to Talk to a Professional

Talk to a qualified attorney or CPA before you choose between an LLC and a corporation, especially if your California-source income may reach the LLC fee thresholds. California does not allow a domestic series LLC. An LLC cannot render a licensed professional service, so professionals use professional corporations instead. Confirm your structure before you file.

Official Resources

Keep exploring: related California guides