San Francisco Business License: Registration, Fees, and Prop M Tax Changes

October 29, 2026

Searching for a San Francisco business license in California usually turns up several answers at once. California has no general state business license. San Francisco is a city and county, so there is no separate county license on top of the city's. What you need is a San Francisco business registration, issued as a Business Registration Certificate by the Office of the Treasurer and Tax Collector, plus any city taxes that apply to your revenue. This guide covers what to register, what you pay, and how Proposition M changed the gross receipts tax for small businesses.

Disclaimer: This article is informational content, not legal or tax advice. Fees, thresholds, and deadlines change, and the agencies named below control the current figures. For entity choice, multi-city activity, or large receipts, talk with a qualified attorney or CPA.

Start with the state: entity, employer, and seller registrations

San Francisco's city registration comes after your state paperwork, not instead of it. The usual sequence is:

1. Register your entity with the California Secretary of State, Business Programs Division (https://www.sos.ca.gov/business-programs). Filing runs through bizFile Online at https://bizfileonline.sos.ca.gov/.
2. Register with the California Department of Tax and Fee Administration (CDTFA) at https://www.cdtfa.ca.gov/ if you sell taxable goods.
3. Register with the Employment Development Department (EDD) if you have employees.
4. Add the licenses and permits your activity requires, such as a state board license for a regulated trade.

Each of these is a separate obligation. A San Francisco Business Registration Certificate does not replace any of them.

State fees to budget for

These are the Secretary of State and Franchise Tax Board figures for the entity itself:

Item	Amount	Notes
LLC Articles of Organization (Form LLC-1)	$70	Online filings normally process in about 5 business days or less. Paper filings take 10 or more business days.
LLC name reservation	$10	Lasts 60 days, not renewable for consecutive periods.
LLC minimum franchise tax	$800	Owed from the first year for LLCs organized or registered in 2024 through 2026. An LLC whose first taxable year begins in 2027 through 2029 pays $400 in year one. Confirm with the FTB.
LLC fee	$900, $2,500, $6,000, or $11,790	Tiers apply once California-source total income reaches $250,000, $500,000, $1,000,000, or $5,000,000.
LLC Statement of Information (Form LLC-12)	$20	Due within 90 days of filing, then every two years. The FTB assesses a $250 penalty if it is missed after a Secretary of State notice.
Corporation Articles of Incorporation	$100	A corporate name needs no designator.
Corporation Statement of Information (Form SI-550)	$25	Due within 90 days of filing, then every year.
Nonprofit articles	$30	Listed for reference. Confirm current requirements with the Secretary of State.

A few structural rules affect the choice. California does not allow a domestic series LLC. An LLC cannot provide a licensed professional service, so professionals such as accountants and architects usually use a professional corporation. Every California LLC or corporation must also keep an agent for service of process: either an individual who lives in California or a corporation that holds a Corporations Code 1505 certificate. An LLC must also keep an office in California, which does not have to be a place of business activity.

The Business Registration Certificate and the annual fee

San Francisco is the only place that issues the city registration. The Office of the Treasurer and Tax Collector runs it, and the annual registration fee is tiered. The fee depends on your San Francisco gross receipts or your payroll expense, whichever the schedule applies to your business. The lowest tiers cost far less than figures older guides quoted, so do not budget from a single number you found online.

To find the exact fee for your business, use the Treasurer's current schedule at sftreasurer.org. Your fee also carries the $4 state disability access fee that every California local license includes.

A new business should register before it starts operating in San Francisco. Waiting until after the first sale or first invoice creates avoidable penalty exposure.

What else the Treasurer may charge

The registration fee is only the first line. Depending on your size and activity, the Treasurer may also administer:

• Gross Receipts Tax: owed only when your San Francisco gross receipts are above the small business exemption. Rates depend on your business activity category, so use the Treasurer's current rate table rather than a rate you saw in an article.
• Overpaid Executive Tax: applies to large businesses. Check with the Treasurer whether it reaches your company.
• Commercial Rents Tax: applies to commercial landlords. Check the current exemption with the Treasurer before assuming you owe nothing.

The annual registration and tax form is filed with the Treasurer. Since 2026, it is due on the last day of February. The first year under this rule had a deadline of March 2, 2026, because February 28 fell on a weekend. An extension of the tax filing is available, but check the Treasurer for its terms.

Proposition M and the small business exemption

Proposition M passed in November 2024. It raised the gross receipts tax small business exemption to $5,000,000 of San Francisco gross receipts. It also reorganized the tax into fewer business activity categories. Reports describe seven categories, so confirm which one fits your business.

The practical effect is simple. A business under the exemption owes no gross receipts tax, but it still pays the annual registration fee. A business over the exemption owes the gross receipts tax at the rate for its category; check with the Treasurer how the tax is computed.

Only San Francisco receipts count

The threshold applies to receipts attributable to San Francisco, not to your total revenue. A firm with half its clients outside the city counts only the San Francisco share toward the $5,000,000. A consultancy billing $8,000,000 in total, with $4,000,000 from San Francisco clients, would fall under the exemption on the San Francisco measure. Keep clear records of where each sale is attributed, because that is what the Treasurer will ask for.

Check the status of the June 2026 measure

A June 2026 measure, Proposition C, would have raised the exemption again. Unofficial reports indicate it failed. Do not rely on any figure beyond what the Treasurer publishes. Before you file, confirm the current exemption with the Office of the Treasurer and Tax Collector.

Other city requirements to check before you open

• Zoning: Check with the San Francisco Planning Department before signing a lease or buying property. Zoning determines whether your use is allowed at the address.
• Health permits: Food businesses need permits from the San Francisco Department of Public Health.
• Seller's permit: Required from the CDTFA if you sell taxable goods. The permit is free. The sales tax base is 7.25% statewide, and district taxes raise city rates to between 7.25% and 11.75%. Confirm the current San Francisco rate with the CDTFA.
• Short-term rentals: Renting a room or home short term requires a separate registration with the Office of Short-Term Rentals. Our separate short-term rental registration guide covers those rules.
• Employees: San Francisco has its own minimum wage, above the state rate, and its own paid sick leave rules. Check with the Office of Labor Standards Enforcement for current figures and requirements. The state minimum wage is $16.90 in 2026 and $17.40 from January 1, 2027, but verify both figures with the state.

California has no general business license, but many trades and professions need one from a state board. Contractors need a license from the Contractors State License Board for projects with a total value of $1,000 or more, and other regulated professions are licensed through Department of Consumer Affairs boards. Check the board that governs your work before you take on customers.

Free help before you file

The California Small Business Development Center network (https://californiasbdc.org/) offers free and low-cost advising on entity choice, permits, and cash flow. For tax questions tied to your receipts, a CPA who handles San Francisco filings can save you from misclassifying revenue.

San Francisco startup checklist

1. Register the entity with the Secretary of State and calendar your Statement of Information deadline.
2. Register with the Treasurer before you start operating, and confirm your fee on the current schedule at sftreasurer.org.
3. Check zoning with the Planning Department before you sign a lease.
4. Get a seller's permit from the CDTFA if you sell taxable goods.
5. File each February by the last day of the month, and track your San Francisco receipts so you know whether the Prop M exemption applies.