Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
LaviCPA is a Los Angeles CPA firm that prepares business and personal tax returns and plans taxes for West Hollywood business owners and real estate owners. Our office is at 7707 Sunset Blvd in the City of Los Angeles, about a quarter mile north of the West Hollywood city line. Shawn Lavi, CPA, our principal, and Elias Lavi, CPA, co-owner and founder, do the work themselves, with no account managers.
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The West Hollywood business license tax
West Hollywood taxes anyone who "engages in business" in the city, whether or not they have a fixed location there. The rules are in chapter 3.36 of the West Hollywood Municipal Code (WHMC).
The tax is a rate per $1,000 of gross receipts. Some of the annual rates:
| Business type | Annual rate per $1,000 of gross receipts |
|---|---|
| Professionals | $1.44 |
| Service providers | $0.96 |
| Retailers | $0.48 |
| Lessors of nonresidential property | $1.44 |
Businesses under $5,000,000 can choose an optional bracketed "alternate tax" instead.
Renewals are due February 1. They are delinquent 30 days later, and penalties apply under §3.36.180. A new business pays before its first day of operation.
Landlords should read the definition of "business" closely. It excludes "the activities of one who manages residential real property that he or she owns." Commercial leasing is taxed.
Business returns and the S-Corp question
We prepare entity returns for West Hollywood businesses and the owners' personal returns that go with them.
If you are weighing an S-Corp, California charges S corporations a 1.5% franchise tax on net income, with an $800 minimum. The federal election is made on IRS Form 2553, and the filing date matters. We check the timing for your entity before you file. See S-Corp salary and election.
Two related notes: how S corporations should answer an IRS CP162A notice and what the OBBBA changes for the QBI deduction.
Rental property in a rent-stabilized city
West Hollywood has its own rent stabilization ordinance, in Title 17 of the municipal code. Capped rent changes the payoff of an improvement or a cost segregation study. We run that math with the rent you can actually charge.
Short-term rentals in West Hollywood
West Hollywood prohibits rentals of 30 consecutive days or less (WHMC 19.36.331). The exception is licensed home sharing. The owner has to live in the unit for the guest's whole stay. Renters cannot get a license. Home sharing owes the city's 12.5% transient occupancy tax, filed monthly.
Because the host lives in the unit, the §280A rules for a residence apply to the tax side. Those rules can limit what you deduct. Our short-term rental loophole page explains the federal rules.
Selling West Hollywood property
A West Hollywood sale pays the LA County documentary transfer tax of $1.10 per $1,000. West Hollywood adds no city transfer tax. The City of Los Angeles ULA tax does not apply here, and the City of LA Rent Stabilization Ordinance does not either.
If you plan to buy a replacement property, see 1031 exchange CPA. If your LA County assessment looks too high, we prepare and file the appeal with the Assessment Appeals Board. See property tax appeals.
Who you work with, and where we are
Shawn Lavi, CPA is LaviCPA's principal. Elias Lavi, CPA is co-owner and founder. Both are licensed CPAs with the California Board of Accountancy. Elias founded the firm about 40 years ago.
Our office is at 7707 Sunset Blvd, Los Angeles, CA 90046. It is in the City of Los Angeles, not in West Hollywood. For investment property, see our Los Angeles real estate practice. We also have pages for Hollywood and Beverly Hills.
West Hollywood FAQs
Do I need a West Hollywood business license if I rent out property?
If you lease commercial or other nonresidential property in the city, yes. The rate is $1.44 per $1,000 of gross receipts. Owners who manage their own residential property fall outside the code's definition of "business". A third party who manages residential property is taxed.
When is the West Hollywood business tax renewal due?
February 1. It becomes delinquent 30 days later, and penalties apply under WHMC §3.36.180.
Can I Airbnb my West Hollywood condo?
Only as licensed home sharing, and only if you live in the unit during the guest's stay. Whole-unit stays of 30 days or less are not allowed. Renters cannot get a home sharing license.
Is your office in West Hollywood?
No. It is at 7707 Sunset Blvd in the City of Los Angeles, about a quarter mile from the West Hollywood line.
Book a New Client Introduction
Bring last year's business and personal returns and any West Hollywood tax notices. We will tell you what we can take on.
The intro is free and runs 30 minutes, by Zoom, by phone, or at our office on Sunset Blvd. It covers fit, scope, and next steps. Tax answers come after that, as paid work.
Book a New Client Introduction or call 323-463-2600.
The information on this page is for educational purposes and does not constitute tax, legal, or investment advice. Tax rules change and your situation is unique. Please consult LaviCPA or another qualified CPA before acting on anything here.
Sources
- West Hollywood Municipal Code ch. 3.36, Business License Tax: https://ecode360.com/43903440
- City of West Hollywood, Home Sharing License: https://www.weho.org/city-government/city-departments/community-safety/neighborhood-and-business-safety/business-licensing-and-permits/home-sharing-license
- West Hollywood ordinance adding WHMC 19.36.331: https://weho.granicus.com/MetaViewer.php?clip_id=2657&meta_id=97053&view_id=22
- LA County Registrar-Recorder/County Clerk, documentary transfer tax: https://www.lavote.gov/home/recorder/property-document-recording/documentary-transfer-taxes
- US Census geocoder: https://geocoding.geo.census.gov/geocoder/
- LA County GIS city boundaries: https://public.gis.lacounty.gov/public/rest/services/LACounty_Dynamic/Political_Boundaries/MapServer/19