This article is intended to help tutors that work for themselves, and or with tutoring referral agencies register for the appropriate city business tax certificates.
If you are located in the city of Los Angeles and you are a corporation, LLC or a sole proprietor / individual that received a 1099 for tutoring, or was paid directly by a company or individual by cash or check (not as an employee) that means you are an independent business. You will want to register for a free city of LA business license. If you are just starting your business and are registering for the first time you will want to put the start date of your business as today’s date. If you have already started a business and do not have a license you may have to pay penalties and back tax if the start date is before today’s date, but not to worry the tax rate is low ($5 for every 1000 earned) normally there is a small business exemption if you make less than 100,000 annually.
As a tutor your business activity code is L049 (Professions/Occupations) for a full list go here
Before You Start:
- Your Federal Employment Identification Number (EIN). Alternately, you may use your Social Security Number if you are a sole proprietor with no employees. You’ll need to have your EIN from the US Internal Revenue Service (IRS) before you can register your business with the City. It’s free and simple to do online (It takes 5 minutes to get here) If you are planning to be a sole proprietor and will not hire any employees, you may also use your Social Security Number, although it’s recommended to obtain an EIN to avoid identity theft.
- A description of your business activities – For Example: Tutoring
- Your legal business name – For Example “Jane Doe’s Tutoring”
- Your business type (partnership, sole proprietor, etc.)
- Your business start date (see above)
- The primary mailing address for your business – Not the Agency you get clients from like Strommen, but your home, home office, or office address
- Your business contact information – Your personal contact info
Use this link to get started
How to register
You may register your business with the City of Los Angeles utilizing their Online New Business Registration service.
To register, you will need to provide:
1. Your Social Security Number if your business is a Sole Proprietorship or your Federal Employment Identification Number (EIN) if your business is a Partnership, a Corporation, a Limited Liability Company (LLC), or a trust
2. A description of your business activities – F
3. Your legal business name and fictitious name (DBA) if any FOR EXAMPLE: JOHN DOE, or JOHN DOE TUTORING LLC
4. Your business start date in Los Angeles – WHEN YOU STARTED TUTORING
5. The exact business address and a primary mailing address for your business location if different from the business location – IF YOU ARE A SOLE PROPRIETOR THIS IS YOUR HOME ADDRESS OR YOUR OFFICE ADDRESS
6. Your business contact information – YOUR PERSONAL CONTACT INFO
Please note that additional information may be required. Once you completed the registration process, you will receive a temporary Business Tax Registration Certificate or Registration Number. A permanent Business Tax Registration Certificate will be mailed within 4 to 6 weeks.