Business Licenses

Business License Updates as of December 2022

The Town of Los Gatos values its business community and appreciates the local services, products, and community vitality each business provides. We are informing all Town businesses of some recent changes to streamline and improve the business license application and renewal process and update the annual fee structure.

Business License Partnership

The Town is excited to announce that we are partnering with HdL Companies (HdL) to provide dedicated business license support to Los Gatos businesses.  The Town’s business license application and renewal process is now streamlined by offering online business license applications and renewals.  HdL will assist with a variety of business license related tasks including new applications, annual renewals, payments, compliance inquiries, and any other general support.  

As of December 16, 2022, Town businesses will work directly with the HdL Business Support Center to address business license processing needs, including 2023 renewals.  The renewal notices for the 2023 year were mailed out by HdL. The Business License Renewal Portal is now available at LosGatos.HdLGov.com.

Measure J and Business License Tax Program Modernization

In November, Los Gatos voters approved Measure J, which modernizes the Town’s business license tax program.  This is the first update to the program since 1991, strengthening funding for core Town services that are enjoyed by Town businesses.  Measure J included a 30% increase on flat rate fees, a 40% increase in retailing gross receipts, and a 120% increase in e-commerce, manufacturing, wholesaling, and jobbing gross receipts.  Further details on Measure J are available on the Town of Los Gatos website at www.losgatosca.gov/MeasureJ.

Thank you for your continued investment in the Los Gatos business community.  The Town team looks forward to working with your businesses through this transition.  Questions can be directed to the Business License Department via email at businesslicense@losgatosca.gov, or via phone at (408) 354-6835.

Who Needs a Town Business License?

A Town Business License is required if a business is located within the Town limits, or if an agent of the business comes into Town to conduct business.

Business License Application Information

Town of Los Gatos Business License 

The license tax due can be determined based on the type of business activity. Those businesses which are based on retail sales, wholesale, manufacturing, and/or jobbing have taxes based on a sliding scale. All other businesses have taxes based on flat fees set forth in the Town Code Sec. 14.20.115. Flat-fee based businesses are pro-rated, by quarter, from the date of application to the end of the year. 

Additional Requirements 

Check CalGold to see if additional Federal, State, and County licenses or permits are required.

Other agency compliance that your business may require: 

• California Department of Tax and Fee Administration (CDTFA) - For seller's permit
• IRS and Franchise Tax Board - Employer Tax ID 
• Employment Development Department - If your business will be having employees
• California Department of Alcoholic Beverage Control - If you intend to sell or serve alcoholic beverages
• County of Santa Clara Consumer Protection Division -  For serving or preparing food