In brief
Yes, with very few exceptions: the city’s code makes it “unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the City without first having procured a license”, and the city says this includes home-based and out-of-city businesses. Non-profits and certain veterans are exempt from the tax, not from the license; the one exemption from both license and tax (section 3.80.327) is a state-licensed family day care home with 14 or fewer children. The chapter also excludes banks and insurers (3.80.310) and lifts the tax for some teaching and for minors’ yard work (3.80.323).
- The rule: Municipal Code section 3.80.210 requires a license before doing business in the city, and an unlicensed operator owes the taxes and penalties “from the date of commencement of the business”1.
- Home-based and out-of-city businesses are named as covered; out-of-city businesses can buy 3-, 6- or 9-month licenses, from $122.10 on the 2026-27 table25.
- Each separate location needs its own license, and a new application is required for a change of entity, a change of 50 percent or more of the owners, a move or an added activity23.
- Tax-exempt is not license-exempt: “Businesses that are exempt from the business license tax are not exempt from applying for and obtaining a business license”4.
- Operating without a license is a misdemeanor, with a fine of up to $500 or up to six months in jail1.
Most of the confusion about the Long Beach license comes from two assumptions: that a business with no storefront in the city is outside the rule, and that a business exempt from the tax is outside the rule. The city’s pages say neither is true. This page sets out who the rule covers, who is excused, and what makes a new application necessary later. What a license costs is in What a Long Beach Business License Costs, how to apply is in How to Apply for a Long Beach Business License, and the full sequence for a new business is the section pillar, How to Start a Business in Long Beach. Information is as of October 2026.
The short answer
| If you are… | Do this |
|---|---|
| Opening a shop, office, salon or restaurant in the city | Get a license before you operate; first-year tax is charged up front10 |
| Working from home in Long Beach | You are covered; the license is the “home-based business” category, and the zoning rules for home occupations apply on top25 |
| Based outside the city and working here | You are covered; a 3-, 6- or 9-month out-of-city license is on the current rate table; the FAQ gives an undated 12-month figure53 |
| A contractor | The city license is required in addition to your state contractor license6 |
| A non-profit or an eligible veteran | Apply anyway; you may be exempt from the tax, not from the license4 |
| A state-licensed family day care home in your own home, 14 or fewer children | Not required to hold the license or pay the tax1 |
| Selling online from a Long Beach address | “Internet sales” is on the city’s list of business types it licenses7 |
What the code says
Section 3.80.210 of the Municipal Code is the whole rule in one sentence: it is “unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the City without first having procured a license from said City to do so and paying the tax hereinafter prescribed”1. The word that does the work is “any”. The section has its own exception: no license is required “if such requirement conflicts with applicable statutes”1.
The city’s license page restates it in plain terms: “All businesses operating within the City of Long Beach need to obtain a business license, including out-of-city or home-based businesses”2.
Home-based businesses
A business run from a Long Beach home is licensed the same way as any other, under its own category: “home-based business”, with a lower base tax than the storefront categories ($299.54 against $488.81 on the 2026-27 table)5. The license is only one of the two gates. Home occupations are also governed by the zoning code, which limits employees, visitors, storage and signs, and lists businesses that cannot be run from a residence at all. Those rules, and the Planning review that goes with the license, are in Running a Business From Home in Long Beach.
Out-of-city businesses
A business based elsewhere that works in Long Beach is covered by the same sentence. The city’s rate table gives out-of-city businesses short-term options: 3 months at $122.10, 6 months at $244.21 and 9 months at $366.31, each plus a per-employee charge of $6.33, $12.66 and $19.035. The city’s FAQ answers “How Much Is A Business License For An Out Of City Contractor Coming Into Long Beach To Conduct Business?” with undated figures, including a 12-month one; the current rate table lists 3-, 6- and 9-month options only, and the cost page sets out the difference35.
Out-of-city businesses can apply without coming to City Hall: the Business License Division accepts applications by mail or by email at [email protected]9. The city’s pages give no day count, dollar threshold or job count for an out-of-city business; the code’s words are “transact and carry on any business”1. The Business License Division at (562) 570-6211 can say how it classifies a specific case9.
Contractors
A contractor’s city license does not replace the state one. The city’s list of required documents says: “To do any work in the City of Long Beach, you must obtain a state contractor’s license in addition to the city business license”6. A contractor with vehicles also needs a city decal on them, which the code requires of any vehicle-based business1.
Landlords and other businesses people forget
The license tax chapter also taxes rental property. The code sets a per-parcel plus per-unit charge for residential rentals of four or more units, nothing for three or fewer, and a per-square-foot charge for non-residential rentals, which the current table prints as $0.038 per square foot15. Types that are easy to overlook as “not really a business” are on the city’s own online list of licensable types, which includes cottage food, catering, handyman work, cleaning agencies, mobile repair and internet sales7.
Who is exempt, and from what
| Who | Exempt from the license? | Exempt from the tax? |
|---|---|---|
| Non-profit | No | May be exempt, on an application with an IRS letter; pays half the tax for a for-profit activity4 |
| Veteran of the Armed Forces | No | Yes, if a California resident and the sole owner of the business4 |
| State-licensed family day care home, 14 or fewer children, in the provider’s home | Yes | Yes1 |
| Everyone else | No | No |
Source:1 for the day care row;4 for the rest. The conditions for the veteran exemption are on the city’s exemptions page4.
When a new application is needed
A license does not follow the business through every change. The city requires a new application when the business changes entity type, when ownership changes by 50 percent or more, when the business moves, or when it adds an activity2. A separate license is also needed “for each separate location in the City”3. Licenses are not transferable under the code, and a vehicle-based business needs a city decal1.
Moving within the city means a new “Change of Address” application, filed in person, because “changing locations requires many different departments at the Permit Center to review the application”3. Closing means submitting an Out of Business Notification Form before the license expires3.
What happens if you operate without one
An unlicensed operator is “liable for the amount of all taxes and penalties applicable from the date of commencement of the business”1. A violation is a misdemeanor “punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment for a period of not more than six (6) months”1. The city also runs an administrative citation program with fines of $100, $200 and $500 for a first, second and later violation of the same section within a year, each day counting as a separate offense8.
Where to check The city’s license page links a business license look-up and a “Check License Status” tool; the Business License Division (411 W. Ocean Blvd., 2nd Floor; (562) 570-6211) answers classification questions9.
The site earns a commission on some links to business services, which does not affect what is recommended.
Frequently Asked Questions
Do I need a business license in Long Beach if I work from home?
Do I need a Long Beach license if my business is based in another city?
Do I need a license if my non-profit is exempt from the tax?
Yes. Exempt businesses are “not exempt from applying for and obtaining a business license”4.
Do I need a separate license for each location?
Yes. “A business license is required for each separate location in the City”3.
Do I need a new license if I change from a sole proprietorship to an LLC?
Yes. A change of entity type needs a new application, as do a move, a change of 50 percent or more of the owners and an added activity2.
Is there any business that does not need a license?
The one exemption from both license and tax is section 3.80.327: a state-licensed family day care home caring for “fourteen (14) or fewer children” in the provider’s home1. The chapter also excludes banks and insurers (3.80.310) and lifts the tax for some teaching and for minors’ yard work (3.80.323)1.
What is the penalty for operating without a license?
Back taxes and penalties from the start of the business, and a misdemeanor carrying a fine of up to $500 or up to six months in jail1.
Related Articles
Sources
- Long Beach Municipal Code, Chapter 3.80 Business License Tax — Municode. Accessed 2026-10-01.
- General Business License — City of Long Beach. Accessed 2026-10-01.
- Business License Frequently Asked Questions — City of Long Beach. Accessed 2026-10-01.
- Business License Exemptions — City of Long Beach. Accessed 2026-10-01.
- Business License Rates Effective July 1, 2026 – June 30, 2027 — City of Long Beach, Financial Management. Accessed 2026-10-01.
- Required Forms and Permits — City of Long Beach. Accessed 2026-10-01.
- Eligible Online License Types — City of Long Beach. Accessed 2026-10-01.
- Administrative Citations — City of Long Beach. Accessed 2026-10-01.
- Business Licenses — City of Long Beach. Accessed 2026-10-01.
- Business License Taxes & Fees — City of Long Beach. Accessed 2026-10-01.