Every business registered with the City of Los Angeles files an annual renewal by the end of February for the year before - with revenue or without. A registered business whose worldwide gross receipts were $100,000 or less owes nothing if that renewal is on time. A creative artist - performing creative activities for entertainment or aesthetic purposes - is exempt on up to $300,000 of those receipts, again only with a timely renewal. Late, the exemption is lost and tax, penalties and interest apply. There has been no new-business exemption since 2018.
The Office of Finance says anyone engaged in business in the city - self-employed independent contractors paid on a 1099 and home-based businesses included - holds a Business Tax Registration Certificate. Its AB63 program uses state tax data to find the ones who do not, by letter; a letter not answered can be sent to the City Attorney.