Business Licenses are permits issued by government agencies allowing individuals or companies to conduct business within the government agencies’ geographical jurisdiction. This license provides the authorization by the local government (such as a county or city) to start a business. A single jurisdiction may require multiple licenses that are issued by multiple government departments and agencies. There can be separate licensing, registration and/or certification required to conduct a business in a single location.
Typically, a company's business activity and physical location (address) determines which licenses are required to operate lawfully. Other determining factors may include the number of employees and the form of business ownership, such as sole proprietor or corporation. Government agencies can fine or close a business operating without the required business licenses.
Anyone doing business in the City of Cathedral City must have a current business license. This includes contractors (and subcontractors) and those working out of their home (Home Occupation). Businesses must not operate within the City until their license is approved. Licenses expire one year from date of issue and are not prorated.
A business owner can submit an application in person at City Hall or download it from City of Cathedral City web site (www.cathedralcity.gov) and mail it to City Hall at 68700 Avenida Lalo Guerrero, Cathedral City CA 92253. There are two primary types of business licenses:
• In-town: A General In-City Business License is based on an estimate of annual gross receipts. This application can be submitted through the mail or in person along with a Building Occupancy Clearance Form and a Fire Inspection Form. The application and these two forms are routed for approval to the Building, Engineering, Fire, Planning, and Police departments. For those business owners operating out of their home, a Home Occupation Application must also be submitted in person at City Hall for Planning department review and approval.
Note – For hotels/motels/apartments/ rentals, including vacation rentals, there is a flat fee instead of an estimate of annual gross receipts.
• Out-of-Town: For those businesses not having a fixed place of business within the City, this type of Business License is a vehicle flat fee. The vehicle’s license plate number is required.
Note – For out-of-town Real Estate Brokers/Sales Agents and for Contractors, there is a (non-vehicle base) flat fee. For contractor’s the contractor’s card must be current with the Contractor’s State License Board.
Other considerations/attachments to be included with a business license application include:
• If a Fictitious Business Name is used, the name must be filed through the County of Riverside, and the fictitious Business Name must be published in the local newspaper. Copies of the fictitious name statement from the County and proof of publication (receipt) must be included with the application.
• Anyone selling products must have a State Sellers Permit. For those that are an in-city business, please provide a copy of the Seller’s Permit (showing the Cathedral City business address) with the application.
• For a Partnership, Corporation, Trust or Limited Liability Corporation, please provide a Federal ID Number (EIN). Businesses that are corporations must attach copies of the first three pages of their Articles of Incorporation. A Sole Proprietor can provide either the Social Security Number or an EIN.
• If you have employees, please provide the State ID Number from the State of California Employment Development Department (EDD).
• Business licenses are not transferable to a new owner.
