//Pasadena, California

How to start a business in Pasadena.

Pasadena is the Crown City: Old Pasadena's brick storefronts, the Rose Bowl and the Tournament of Roses, Caltech and the JPL brain trust, and a deep arts and dining scene. Here is the practical sequence to license and open, with the official links and where to get free help.

Starting a business in Pasadena? The official steps and source links are below.

Already operating or launching with budget in place? You can also

Pasadena is one of Los Angeles County's most distinctive markets, and an affluent one. Old Pasadena draws shoppers and diners to a walkable historic core along Colorado Boulevard, the same street the Rose Parade marches down every New Year's Day. Caltech and the nearby Jet Propulsion Laboratory anchor a dense community of scientists, engineers, and researchers, and the city's museums, the Playhouse District, and a serious food scene pull visitors from across the region.

That mix means your customer could be a Colorado Boulevard tourist, a Caltech postdoc, or the owner of an established firm in a Green Street office. Each finds you differently. Getting open cleanly, with the right license and permits, is the first step. Getting found afterward is the second. This guide covers the first in detail, then points you to the second at the end.

//The sequence

How to start a business in Pasadena, step by step.

Pasadena issues its own business license and runs its own health department. Here is the full order, including the county and state pieces the city process assumes you already know.

1
Plan and confirm your location works
Check the citywide zoning map, and call the Planner of the Day at (626) 744-6777 with zoning questions before you sign anything. Every business in a commercial area needs a code compliance inspection to confirm it meets the zoning rules: Code Compliance, (626) 744-4633.
City of Pasadena: Starting a Business City of Pasadena: Business Licenses
2
Register the business and the name
Form an LLC or corporation with the California Secretary of State through bizfile Online, or stay a sole proprietor. If you use a name that is not your legal name, file a fictitious business name (DBA) statement with the Los Angeles County Registrar-Recorder/County Clerk within 40 days of starting business. It costs $26 for one name and one registrant, and you can file online, by mail or in person. The county says publication must begin within 30 days of filing, once a week for four consecutive weeks in an adjudicated Los Angeles County newspaper, which is stricter than the 45 days in state law.
CA Secretary of State: bizfile Online LA County Registrar-Recorder/County Clerk: Fictitious Business Names
3
Get your free EIN and any seller's permit
The IRS says you generally need an EIN to hire employees or to operate a partnership or corporation. It issues the number online, immediately if approved, and never charges for it. If you sell or lease goods that would ordinarily be subject to sales tax, you also need a seller's permit from the CDTFA, which does not charge for it but may ask for a security deposit. Pasadena asks for a seller's permit showing your Pasadena business address if you sell goods retail or wholesale.
IRS: Get an EIN CDTFA: Seller's permit
4
Get your Pasadena business license
The Pasadena Municipal Code requires every business operating in the city to have a license and pay an annual business license tax, whether or not it is run for profit. The tax is paid in advance, before the business operates, and renews every year. Most classifications are a flat rate plus the number of employees, and certain new businesses with fewer than 5 employees may qualify for a $1 starter rate in the first year. Apply online or in person at City Hall, 100 N. Garfield Ave., Room N106. Business License Section: (626) 744-4166.
City of Pasadena: Business Licenses City of Pasadena: Starting a Business
5
Pull any industry permits
If you sell or serve food: Pasadena runs its own health department, not the county's. Before you apply for a health permit for a food facility, truck or cart, you submit plans; health permit applications are online. Environmental Health: 1845 N. Fair Oaks Ave., (626) 744-6004. For other permits, GO-Biz offers permitting and regulatory help for any size company.
City of Pasadena: Environmental Health GO-Biz: Permit & Regulatory Assistance
6
Check the $800 California tax rules for your entity
Every California LLC owes the $800 annual tax, even in a year it does no business, until it is cancelled. Corporations owe an $800 minimum franchise tax, but newly incorporated or qualified corporations do not pay it in their first taxable year.
Franchise Tax Board: LLC $800 annual tax Franchise Tax Board: Corporation minimum tax
7
Use the free help that already exists
The LA Regional SBDC Network offers no-cost, confidential business advising and low-cost training across Los Angeles, Santa Barbara and Ventura counties. Use it before you pay a consultant.
LA Regional SBDC Network (free advising)

//Free Pasadena checklist

Take the steps with you.

Get the Pasadena business checklist with the city, county, state and federal source links in one place, plus the licensing offices of seven Los Angeles County cities. We keep the source page dated so you can see when it was last checked.

//Common questions

Things we get asked first.

Do I need a business license in Pasadena?

Yes. The Pasadena Municipal Code requires every business operating in the city to have a license and pay an annual business license tax, whether or not it is run for profit. The tax is paid in advance, before the business operates.

Source: City of Pasadena, Business Licenses

How much does a Pasadena business license cost?

With a few exceptions, the tax is a flat rate plus the number of employees, set by your license classification. Certain new businesses with fewer than 5 employees may qualify for a $1 starter rate in the first year. The Business License Section can confirm your rate: (626) 744-4166.

Sources: City of Pasadena, Business Licenses and Starting a Business

Can I run a business from my home in Pasadena?

Yes, with a business license and an approved Home Occupation Permit from the Code Compliance Section, plus signed permission from the property owner. The business must meet the city's zoning requirements.

Source: City of Pasadena, Business Licenses

How do I open a restaurant or bar in Pasadena?

Pasadena has its own health department, so the food permit comes from the city, not LA County. Submit plans before you apply for a health permit: Environmental Health, 1845 N. Fair Oaks Ave., (626) 744-6004. You also need the Pasadena business license and the code compliance inspection for a commercial space.

Source: City of Pasadena, Environmental Health

Do nonprofits need a Pasadena business license?

Charitable nonprofits need a license, but with proof of exempt status from the IRS they are exempt from the fee. Submit a copy of the 501(c)(3) letter with the application.

Source: City of Pasadena, Business Licenses

How do I register a business name in Los Angeles County?

If you use a name that is not your legal name, file a fictitious business name (DBA) statement with the Los Angeles County Registrar-Recorder/County Clerk within 40 days of starting business. It costs $26 for one name and one registrant, and you can file online, by mail or in person. The county says publication must begin within 30 days of filing, once a week for four consecutive weeks in an adjudicated Los Angeles County newspaper, which is stricter than the 45 days in state law.

Source: LA County Registrar-Recorder/County Clerk, Fictitious Business Names

//Already operating?

The marketing question starts after the filing question.

If the business is already open, or the launch is funded, tell our founders what you want to change. We will look at the business before recommending SEO, paid media, the website or anything else.

For operating businesses and funded launches with budget available to act on the plan.

//Bookmark these

Official Pasadena, Los Angeles County, and California resources.

Every link here goes straight to a government or nonprofit source. These are the agencies that actually issue your registrations and permits, so go to them directly rather than a paid middleman.

City of Pasadena: Business Licenses
An annual business license tax for every business in the city, paid before you operate. Business License Section: (626) 744-4166.
City of Pasadena: Starting a Business
The license office at City Hall, the zoning map and Planner of the Day, and the $1 starter rate for certain new businesses.
City of Pasadena: Environmental Health
Pasadena's own food permits. Submit plans before you apply for a health permit. 1845 N. Fair Oaks Ave., (626) 744-6004.
County of Los Angeles: LA County Cities
The county's list of all 88 cities. Each one licenses the businesses inside it.
LA County Treasurer and Tax Collector: Business License
Licenses certain business activities in unincorporated areas and in Malibu, Santa Clarita and Westlake Village. (213) 974-2011.
LA County Planning
The planning department for every area outside a city, including zoning. (213) 974-6411.
LA County Registrar-Recorder/County Clerk: Fictitious Business Names
$26 for one name and one registrant, plus $5 for each additional. The county says publication must begin within 30 days of filing.
LA County Environmental Health: Restaurant Permit
Plan check for new or remodeled food facilities, then the Public Health Permit. Long Beach, Pasadena and Vernon have their own. Plan Check: (626) 430-5560.
LA County Assessor: Business Property Assessments
If your equipment and fixtures cost $100,000 or more, file the Business Property Statement by April 1. Inventory is exempt. (213) 974-3211.
LA Regional SBDC Network (free advising)
No-cost, confidential advising and low-cost training across Los Angeles, Santa Barbara and Ventura counties. 1-866-588-SBDC.
CA Secretary of State: bizfile Online
Where LLCs and corporations file with the California Secretary of State.
IRS: Get an EIN
Your federal tax ID. Apply online and, if approved, the number is issued immediately. The IRS never charges a fee for an EIN.
CDTFA: Seller's permit
Required if you sell or lease goods that would ordinarily be subject to sales tax. The CDTFA does not charge for it, though it may ask for a security deposit.
Franchise Tax Board: LLC $800 annual tax
Every LLC doing business or organized in California owes the $800 annual tax, even in a year it does no business, until the LLC is cancelled.
Franchise Tax Board: Corporation minimum tax
Corporations owe an $800 minimum franchise tax, but newly incorporated or qualified corporations do not pay it in their first taxable year.
GO-Biz: Permit & Regulatory Assistance
The Governor's Office of Business and Economic Development says it will assist any size company with permitting and regulatory questions.