Short answer: Inland Empire business license rules are set by each city, so Riverside, San Bernardino, Ontario and Rancho Cucamonga each run their own license or business tax. Several cities base the tax on gross receipts, which means all sales before expenses. Your books need gross receipts by year, split by location, that match your other filings.
One region, many rulebooks
The Inland Empire is two counties and dozens of cities. Each city sets its own business license or business tax rules. A contractor based in Rancho Cucamonga who works jobs in Ontario and Riverside may deal with more than one city.
Several cities base the tax on gross receipts. That makes it a bookkeeping question: the number you report has to come from somewhere, and it has to hold up if the city asks.
This guide covers what each city publishes on its own website. Rates and rules change, so confirm with the city before you file.
Riverside
The City of Riverside issues a business tax certificate. The city says a new business owes the tax when it starts doing business, and an existing business renews at the expiration date of its previous certificate.
Riverside requires a separate certificate for each business activity at a location and for each branch. Property owners who rent out residential or commercial property in the city also need a certificate, and the city publishes rate classes that use gross receipts.
San Bernardino
The City of San Bernardino uses a business registration certificate. The city says businesses with a physical location in San Bernardino pay a fee based on gross receipts, with the schedule set by resolution of the Mayor and City Council.
The city also says the certificate must be displayed at the business in a conspicuous place, and that it is not transferable.
Ontario
The City of Ontario's business license FAQ defines gross receipts as all sales and receipts for the year before any expenses are deducted. That is the top line, not profit.
Ontario says businesses taxed on gross receipts should be able to support the figure. It lists California sales tax returns for the past four quarters, or other records such as income statements, as acceptable support, and suggests page one of the federal return (Schedule C or E, Form 1065 or Form 1120) for federal filers.
Rancho Cucamonga
Rancho Cucamonga's business license portal says licenses renew once a year, on a date tied to when the business started operating in the city. Put that date on the calendar.
What your books need to show
- Gross receipts by year that match your sales tax returns and income tax return
- Receipts split by location if you operate in more than one city
- A record of which city each job or branch was in, for contractors and multi-site businesses
- Rental income by property, if you own rentals in a city that taxes it
- A copy of each certificate and its renewal date
Contractors and multi-city work
Contractors and service trucks cross city lines all day. A roofer in Corona may finish a job in Norco in the morning and start one in Eastvale after lunch. Some cities care about where you are based. Others care about where you do the work. Keep job records with the job address, so receipts can be split by city if a city asks.
Where we help
We do not file city licenses for you. We keep the books so the gross receipts number is clean, ties to your other filings, and can be split by location when a city asks.
Questions
Do I need a license in every city I work in?
It depends on each city's rules and what you do there. Check with each city where you have a location or regularly do work.
Is gross receipts the same as profit?
No. Ontario's definition, for example, is all sales and receipts before expenses. Report the top line, not what is left after costs.
What records back up my gross receipts?
Your reconciled income accounts, sales tax returns and income tax return. When all three agree, the number holds up.
Do you file city business taxes?
No. We keep the books so the gross receipts figure is right and ready for you or your CPA to report.