You’ve received that yellow postcard in the mail from the City of Los Angeles reminding you it’s time to file your business tax renewal. You do it every year, but every year it’s as confusing as the previous year. As an LA-based creative artist, you know you (probably) don’t owe anything, and yet, getting the online form to reflect that never works.
It’s okay! We’re here to help.
What Is a Creative Artist?
According to the Los Angeles Municipal Code Sec.21.29., a creative artist is any of the following: an actor or announcer; art director, costume designer, production designer, scenery or set designer; choreographer; cinematographer; conductor of bands, chorales, orchestras, and other musical groups; director; motion picture editor, sound dubbing, special effects, or titling artist; music or lyrics arranger, composer or writer; author of books, essays, poems or short stories; cartoon artist, including animated media; creator of visual fine arts, using artist’s materials (i.e., lithographer, painter, sculptor, or the equivalent); drawing, graphic, illustration or sketch artist; performing artist, including comedian, dancer, impersonator, juggler, magician, mime, musician, or singer; or a photographer, to the extent the photography is primarily artistic in nature and not primarily journalistic or commercial.
Am I in the City of Los Angeles?
If you received that yellow postcard, you have to renew. If you didn’t and you’re not sure, you can check your zip code at the Los Angeles Office of Finance website: https://finance.lacity.gov/business-location.
When Is the Deadline for Business Tax Renewals
Technically, the renewal is due on January 1st for the upcoming year. However, it’s not considered delinquent until after February 28th of the same year. So, really, you have until the end of February to get it filed on time.
As a Los Angeles Creative Artist, Do I Owe?
If you have a sole proprietorship, LLC, or S-corporation as a Los Angeles creative artist and you make under $300,000 throughout the year, you will not owe but you still have to file.
A Guide to Completing the Online Form
Here are some tips for filling out the online City of Los Angeles business tax renewal form correctly.
- Before even filling out the form, you need to know the total amount of money that your business made during the year. This total is before expenses and taxes and is known as your gross receipts. If any part of that total is not due to your creative work in Los Angeles, then you also have to figure out what amount was for creative work only, or as the online form calls it, creative activities.
- Go to https://finance.lacity.gov/efiling-renewals and click on the Online Business Renewal button, which will take you to the online form.
- You will need your account number or the federal employer identification number of your business to start (sole proprietors can use their social security numbers). A tip: your account number is on the front of the yellow postcard.
- When you reach the first screen that asks for your gross receipts, this is where it gets confusing for creative professionals. If all of your income was from creative activities AND the total is under $300,000, instead of entering your gross receipts here, enter 0. That’s right: zero.
- On the next screen, you will be asked for your total gross receipts again. Here is where you enter the actual number of your gross receipts from your creative work and any other income your business may have made.
- Under that, it will ask if any of the income is due to “Creative Artist Activities.” Choose the “yes” button.
- Under that question, it will ask that you enter your gross receipts from your “Creative Artist Activities.” If all of your income was from your creative work, enter that total again. If not, only enter the amount of income from your creative work.
- Once you click through to the end, you should see a completed form that shows that you do not owe anything to the City of Los Angeles (unless you had over $300,000 in gross receipts).
And that should be it. You got through it for another year.
If you have additional questions, please go to finance.lacity.gov or contact their customer service.
We hope this guide to your business tax renewal is helpful! If you are in need of bookkeeping and/or business tax return services, contact Moore & Paquette now.
Please note that tax laws and due dates change often, and this is simply a guide to help you. Moore & Paquette is not responsible for any errors you may make while filling out the form.