Due to the widespread budget deficits being experienced by government at all levels, it appears a lot of government entities are diligently going after revenue owed them. San Diego is no exception. All businesses, including home business, must file and pay for a Business Tax Certificate if you operate in an incorporated area of San Diego. A new law in 2001, AB63 allows the state and cities to share taxpayer information in order to find unregistered/licensed businesses.
Even if you are self-employed, an independent contractor, or a home based business, you must apply and pay for a certificate regardless of the amount of income you actually earn throughout the year.
If you are operating in one of the unincorporated areas of San Diego County you do not need to obtain a business license, but be aware that if you conduct business in any of the cities, they may require a license anyway. San Diego requires a business tax certificate if you conduct business within city limits. You can learn more about San Diego’s Business Tax Certificate program here.
