Business License in San Francisco (2026): Registration Fees by Gross Receipts, Prop M and Permits

If you're opening a shop, freelancing or bringing an out-of-state company's work into San Francisco, the "business license" you need is the City's Business Registration Certificate from the Office of the Treasurer & Tax Collector. This guide covers who has to register, what the 2026 fee is for your gross receipts, how Proposition M changed the City's business taxes from 2025, how the First Year Free program waives new owners' fees, and the permits and state registrations that go alongside. Fees come from the Treasurer's 2026-27 schedule, checked in October 2026.

Quick answer

Anyone doing business in San Francisco must get a Business Registration Certificate from the Treasurer & Tax Collector within 30 days of starting. The fee depends on your San Francisco gross receipts: $55 for up to $100,000, rising by tier, plus a $4 state fee. Renewal and the annual tax return are now one form, due the last day of February.

• Prop M raised the Gross Receipts Tax exemption to $5 million from tax year 2025

• Registration year runs April 1 to March 31

• First Year Free waives the first fee for eligible new storefronts until June 30, 2027

• Selling goods? Get a free CDTFA seller's permit; SF sales tax is 8.625%

• Regulated activities still need City permits from Planning, Public Health, Fire or Police

What a "business license" means in San Francisco

San Francisco doesn't issue a general business license in the sense of a qualification check. What it issues is a Business Registration Certificate, which shows you've registered with the Office of the Treasurer & Tax Collector and paid the annual registration fee. It's a tax registration: the City uses it to know who's doing business here and to collect the registration fee and, for larger businesses, the gross receipts and other business taxes.

The registration duty is broad. The Treasurer says every person engaging in business in the City must register within 30 days after starting. You're treated as engaging in business, and must register, if any one of these is true:

• You have a fixed place of business in San Francisco, which includes a home office.
• You or your staff work or solicit business in San Francisco on any part of seven or more days in a tax year.
• You have more than more than $500,000 in gross receipts allocated to the City.

That last test catches businesses with no physical presence at all, and the second catches contractors and consultants who visit the City for a week of client work. Your mailing address doesn't need to be in San Francisco. When you count employees for the application, include staff who work outside the City.

The certificate is mailed within 10 to 15 business days after you submit and pay, and it must be displayed conspicuously at your place of business. It doesn't replace any permit your activity needs. A restaurant still needs a health permit, a bar still needs state and City approvals, and a construction company still needs a state contractor's license.

Who doesn't need to register or pay

A few groups are exempt from the fee, though most still register:

• Organizations with formal exemption under Internal Revenue Code §501(c), §501(d) or §401(a), and certain others, don't pay the registration fee. You upload proof of your tax-exempt status when you apply.
• Owners renting out a single residential structure of fewer than four units, a single condominium, or receiving rent from a cooperative housing corporation generally don't need to register for that rental.
• If your only San Francisco business is driving for a taxi company or a ride-hail app (a Transportation Network Company), you no longer have to register or renew.

Because San Francisco is a consolidated city and county, there's no separate county license to think about. One registration covers the whole of San Francisco, but it doesn't cover neighboring cities such as Daly City, Oakland or South San Francisco, which run their own programs.

The 2026-27 registration fee by gross receipts

Your fee is set by your San Francisco gross receipts for the previous calendar year. The 2026-27 registration year runs from April 1, 2026 to March 31, 2027 and is based on 2025 receipts. New businesses use their estimated receipts. Each tier also pays the $4 state disability access fee, which California requires every city to collect on new and renewed local business licenses.

Notice the drop above $5 million. Businesses in the $1,885 tier sit just under the Gross Receipts Tax exemption, so the registration fee is their main City business charge. Above $5 million, businesses start paying the Gross Receipts Tax itself, and the registration fee falls to $800 before climbing again. That's how the Treasurer's published 2026-27 schedule reads; if your receipts are near that line, check the current table when you file.

Fees rose for 2026-27. The Treasurer's Prop M page gives examples: the lowest tier went from $41 in the 2025-26 transition period to $55, and the $2.5 million to $5 million tier went from $1,414 to $1,885. Part of the reason is that 2025-26 covered only nine months, from July 1, 2025 to March 31, 2026, while San Francisco moved its registration year to start in April.

Large businesses that qualify as administrative offices pay a separate fee schedule based on San Francisco payroll expense instead of gross receipts, from $500 up to $35,000. That only applies to companies that meet all three of the Administrative Office Tax tests described below.

San Francisco business registration at a glance (2026)

$55

Lowest fee, receipts up to $100,000

Plus $4 state fee

30 days

Deadline to register after starting

$5 million

Gross Receipts Tax exemption

Since tax year 2025

the last day of February

Annual renewal and tax return due

Prop M: what changed in 2025 and 2026

San Francisco voters approved Proposition M on November 5, 2024. It's the biggest change to the City's business taxes in a decade, and January 1, 2025 was the first tax year under the new rules. If you read a guide written before 2025, much of the tax detail is out of date.

A higher small business exemption. The Gross Receipts Tax and Overpaid Executive Tax exemption rose from $2,250,000 to $5 million in combined San Francisco gross receipts, starting with the 2025 tax year return filed in 2026. Businesses at or below that line generally don't file a Gross Receipts Tax return, but they still renew their registration every year. Residential landlords are excluded from this change and have their own rules. The Commercial Rents Tax keeps its separate $2,325,000 exemption.

Fewer business categories. The number of business activity categories fell from 14 to 7, each with its own rate table:

1. Retail and wholesale trade, restaurants, arts and recreation, repair, personal and laundry services.
2. Accommodations.
3. Real estate, building services, and parking.
4. Manufacturing, transportation, utilities, insurance carriers, security and office support services, and similar.
5. Information, professional, scientific and technical services, healthcare, education and other services not taxed elsewhere.
6. Banking, securities and financial activities.
7. Construction.

New rates, phased in. For 2025 and 2026, Category 1 businesses pay 0.100% on the first $1 million of San Francisco gross receipts, 0.130% from $1 million to $2.5 million and 0.180% from $2.5 million to $25 million. Category 5 professional services start at 1.000%. Rates step up again in 2027 and 2028; Category 1's first-band rate, for example, rises to 0.104% in 2027.

Homelessness tax. The Homelessness Gross Receipts Tax now applies only to business activities with San Francisco gross receipts above $25 million.

New apportionment. Most businesses now allocate receipts to San Francisco using 75% sales-based and 25% payroll-based factors.

One form, one deadline. Registration renewal and the annual business tax return were merged into the Annual Business Registration and Tax Form, due the last day of February. The first combined deadline was March 2, 2026, because February 28 fell on a weekend. Extended returns are now due November 30, but payments are still due on the main deadline, and to qualify for an extension you must request it on time and pay 110% of the prior year's obligation.

The very largest companies may also owe the Administrative Office Tax. It only applies if all three are true: more than 1,000 US employees, more than $1 billion in gross receipts on the latest federal return, and more than half of San Francisco payroll spent on administrative or management services for the company or related entities. Very few small businesses will ever meet that test.

San Francisco business taxes before and after Prop M

Rule	Before 2025	From tax year 2025
Gross Receipts Tax exemption	$2,250,000	$5 million
Business activity categories	14	7
Homelessness Gross Receipts Tax	Earlier threshold and rates	Over $25 million
Registration year	July 1 to June 30	April 1 to March 31
Renewal and tax return	Separate deadlines	One form, the last day of February
Extended return deadline	April 29, 2025 for 2024 returns	November 30

Gross Receipts Tax exemption

Before 2025

$2,250,000

From tax year 2025

$5 million

Business activity categories

Before 2025

14

From tax year 2025

7

Homelessness Gross Receipts Tax

Before 2025

Earlier threshold and rates

From tax year 2025

Over $25 million

Registration year

Before 2025

July 1 to June 30

From tax year 2025

April 1 to March 31

Renewal and tax return

Before 2025

Separate deadlines

From tax year 2025

One form, the last day of February

Extended return deadline

Before 2025

April 29, 2025 for 2024 returns

From tax year 2025

November 30

Worked examples

These use the 2026-27 schedule. They leave out permit fees, which depend on your activity.

A freelance UX designer working from a home office in the Richmond, with $85,000 of receipts. She registers within 30 days of starting and pays $55 plus $4, for $59. She doesn't qualify for First Year Free because it excludes home-based businesses, and she doesn't file a Gross Receipts Tax return because she's far below $5 million. Each February she renews based on the previous year's receipts.

A café opening in the Mission in 2026, expecting $600,000 of receipts. Its tier is $320 plus $4. Because it's a new business with a commercial location and estimated receipts under $5,000,000 or less, it's enrolled automatically in First Year Free, which waives the initial City registration fee. The $4 state fee isn't covered, because the program waives City and County fees only. The café takes its enrollment letter to the Department of Public Health and other permitting departments so their first-year fees are waived too. At the next renewal, it pays the normal fee for its tier.

A shoe retailer with $6 million of San Francisco receipts in 2025. Its registration fee is $800 plus $4. Because it's above $5 million, it also files and pays the Gross Receipts Tax as a Category 1 business. Applying each band's rate to the receipts in that band gives $1,000 on the first $1 million, $1,950 on the next $1.5 million and $6,300 on the remaining $3.5 million, or about $9,250 in Gross Receipts Tax. This is an illustration only: the actual return applies exclusions, apportionment and any credits, so use the Treasurer's form for the real figure.

For comparison, Los Angeles charges a business tax on every dollar of gross receipts above its small business exemption; our Los Angeles business license guide has the rates. San Diego's tax is flat and based on employee count, as our San Diego business license guide explains.

How to register step by step

You apply online through the Treasurer's New Business Registration Application. Have your legal business name, ownership details, start date, the six-digit NAICS code for your activity, your estimated San Francisco gross receipts and your employee count ready.

Registering your San Francisco business

1. 1

   Set up your legal entity and federal EIN

   Form your LLC or corporation with the California Secretary of State if you're using one, and get an EIN from the IRS. Sole proprietors can use their own name.

2. 2

   Check zoning for your location

   Confirm with San Francisco Planning that your use is allowed at your address before you sign a lease. Changes of use often need a permit.

3. 3

   Complete the online registration

   Enter your activity, NAICS code, start date and estimated gross receipts. Answer the First Year Free questions if you're a new storefront.

   SF Treasurer — Register a Business
4. 4

   Sign the DocuSign email within 15 days

   After you submit, DocuSign emails the business address. Unsigned applications are deleted after 15 days and you start again.

   Tip: Check spam folders the day you apply.

5. 5

   Pay and display your certificate

   Pay the fee for your tier plus the $4 state fee. The certificate arrives in 10 to 15 business days; display it where customers can see it.

Register within 30 days of your start date. The Treasurer warns that leaving out a tax or fee type that applies to you can result in penalties and interest, so read each question carefully, especially those about commercial rents, payroll and short-term rentals.

First Year Free

San Francisco's First Year Free program, created by the Board of Supervisors and the Mayor, waives the up-front City costs for new storefront businesses. As of October 5, 2026, the Treasurer reported 15,424 businesses enrolled.

You qualify if you're a new business, or a new location of an existing business, that began on or after July 1, 2023, and you:

• have $5,000,000 or less in estimated or reported San Francisco gross receipts;
• have a registered location for commercial use; and
• aren't a home-based business or a short-term rental.

The waiver covers the initial business registration fee for new businesses, application, inspection and one-time permit fees, and initial license fees. State surcharges still apply, and only the first license fee is waived, so a renewal bill can still arrive during your first year.

There's no separate application. Enrollment happens automatically when you register a new business or add a location, and you receive an email and letter confirming it. Take that confirmation to each permitting department so they waive their fees. The program has been extended through June 30, 2027, or until the money that reimburses City departments runs out, so new owners opening in the next few months should register promptly.

Permits and state registrations that go with it

The Business Registration Certificate is the starting point. What else you need depends on the activity.

City permits. Restaurants, cafés, food trucks and grocery stores need a Department of Public Health permit. Changes of use, new storefronts and signs go through San Francisco Planning and the Department of Building Inspection. Places of entertainment and late-night venues need Entertainment Commission permits, and some activities, such as massage, need Police or Public Health permits. The City's Permit Center brings several of these departments into one place for in-person help.

CDTFA seller's permit. If you sell tangible goods, in a shop or online, you need a free seller's permit from the California Department of Tax and Fee Administration. It lets you collect sales tax, which is 8.625% in San Francisco. See our California sales tax guide for rates, returns and district taxes.

Fictitious business name. If you trade under a name that isn't your legal name, or your LLC or corporation uses another name, you file a fictitious business name statement with the San Francisco County Clerk and publish it in a local newspaper, as California law requires. Our DBA guide explains the process.

State licences. Contractors need a license from the Contractors State License Board, and many professions are licensed by California boards. The City registration doesn't replace any of them.

San Francisco registrations to line up

0/7

• Business Registration Certificate within 30 days of starting
• Zoning confirmed with Planning for your address
• Public Health, Planning, Building or other permits your activity needs
• CDTFA seller's permit if you sell goods
• Fictitious business name filed and published if you use a trade name
• State professional or contractor license if your work is regulated
• First Year Free enrollment letter saved for permitting departments

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Renewal, deadlines and penalties

Every business must renew its registration each year, even if it's exempt from the fee. Under Prop M, renewal is part of the Annual Business Registration and Tax Form due the last day of February. You report the previous year's San Francisco gross receipts, which set the next year's fee, and file any Gross Receipts Tax, Commercial Rents Tax or other returns at the same time.

If you don't renew and pay by the deadline, you won't receive a printed certificate for the new year, and the Treasurer adds penalties and interest. Businesses that owe gross receipts tax also make quarterly estimated payments, due April 30, July 31 and October 31.

A San Francisco business's year

Within 30 days of starting

Register and pay; certificate mailed in 10 to 15 business days

Last day of February

Annual Business Registration and Tax Form: renewal plus any business taxes

April 1

New registration year begins

April 30, July 31, October 31

Quarterly estimated payments if you owe business taxes

November 30

Extended deadline for the annual return (payment was still due in February)

Common mistakes

Thinking an out-of-town business is exempt. A Sacramento consultant who spends eight days on a San Francisco client project, or an online seller with more than more than $500,000 of City-allocated receipts, must register even without an office here.

Using the old deadline. Before Prop M, renewals were due at the end of May. The deadline is now the last day of February, together with the tax return.

Missing the DocuSign step. An application that isn't signed within 15 days is deleted, and if you're past your 30 days you're now late.

Assuming the registration is a permit. A café that registers but opens without a health permit can be shut down. Get the activity permits before opening.

Not updating your receipts. Your fee follows your receipts. If your business grows past a tier, or past the $5 million exemption, report it accurately; under-reporting leads to back fees, penalties and interest.

Forgetting to close the account. If you move out of the City or close, tell the Treasurer. Otherwise renewal bills, and penalties for non-payment, keep coming.

Official links

• Register a BusinessNew registrations and locations
• Renew Business Registration2026-27 fee schedule
• Prop M 2024 Business Tax ReformWhat changed and when
• Gross Receipts TaxCategories and rates
• First Year FreeFee waivers for new storefronts
• CDTFA — Permits & LicensesFree seller's permit

What to do next

Check zoning for your address, register with the Treasurer within 30 days of starting, and if you're opening a storefront, keep your First Year Free letter for the permit counters. If you sell goods, get a CDTFA seller's permit and read our California sales tax guide. Use the startup cost calculator to budget for fees and permits, and compare Southern California's rules in our Los Angeles business license guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much is a business license in San Francisco?

San Francisco's Business Registration Certificate fee depends on your San Francisco gross receipts. For the April 2026 to March 2027 registration year it starts at $55 for receipts up to $100,000 and rises by tier to $60,000 for receipts over $200 million. Every tier adds the $4 state disability access fee. Qualifying new storefront businesses may have the first fee waived under First Year Free.

Who needs to register a business in San Francisco?

Anyone engaging in business in the City, including freelancers, home businesses and out-of-town companies, if they have a fixed place of business in San Francisco, work or solicit there on any part of seven days in a tax year, or have more than more than $500,000 in gross receipts allocated to the City. You must register within 30 days of starting.

What did Prop M change for San Francisco businesses?

Proposition M, approved on November 5, 2024, took effect for tax year 2025. It raised the Gross Receipts Tax small business exemption from $2.25 million to $5 million, cut business activity categories from 14 to 7, moved the Homelessness Gross Receipts Tax threshold to $25 million, and merged registration renewal and the annual tax return into one form due the last day of February.

When is the San Francisco business registration renewal due?

Under Prop M, the renewal is part of the Annual Business Registration and Tax Form, due the last day of February. Because February 28, 2026 fell on a weekend, the first combined deadline was March 2, 2026. The registration year runs from April 1 to March 31. Businesses that don't renew and pay on time don't receive a printed certificate and face penalties and interest.

What is First Year Free in San Francisco?

First Year Free waives the initial business registration fee and most first-year City permit, inspection and license fees for new businesses or new locations that started on or after July 1, 2023, have $5,000,000 or less in estimated San Francisco gross receipts and a commercial location. Home-based businesses and short-term rentals don't qualify. It runs until June 30, 2027 or until funding runs out.

Do I need a seller's permit in San Francisco too?

If you sell tangible goods, yes. The seller's permit comes from the California Department of Tax and Fee Administration, not the City, and it's free. It lets you collect sales tax, which is 8.625% in San Francisco. A business that only sells services usually doesn't need one.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Register a Business — San Francisco Office of the Treasurer & Tax Collector · accessed 9 October 2026
2. 2.Renew Business Registration — San Francisco Office of the Treasurer & Tax Collector · accessed 9 October 2026
3. 3.Prop M 2024 Business Tax Reform — San Francisco Office of the Treasurer & Tax Collector · accessed 9 October 2026
4. 4.Gross Receipts Tax (GR) — San Francisco Office of the Treasurer & Tax Collector · accessed 9 October 2026
5. 5.Annual Business Registration and Tax Form Instructions (2025 tax year / 2026-27 registration) — San Francisco Office of the Treasurer & Tax Collector · accessed 9 October 2026
6. 6.First Year Free — San Francisco Office of the Treasurer & Tax Collector · accessed 9 October 2026
7. 7.Permits & Licenses — California Department of Tax and Fee Administration · accessed 9 October 2026
8. 8.California City & County Sales & Use Tax Rates — California Department of Tax and Fee Administration · accessed 9 October 2026