Law firms with offices in Los Angeles and San Francisco should note that local municipal tax filing deadlines are quickly approaching — and are commonly overlooked. The Los Angeles Business Tax is due February 28, 2017; taxpayers can apply for a maximum filing extension of 45 days. The San Francisco's Gross Receipts Tax is due on or before February 28, 2017; taxpayers can request a 60-day extension. San Francisco also requires payment of a Business Registration Fee. Taxpayers must register or renew their business registration every year. The due date for registration or renewal is May 31, 2017.

Nearly every California municipality imposes local business licensing taxes and these levies vary widely from locality to locality. Moreover, unlike state or local income taxes in other states, these taxes do not except from payment business entities based on form. That is, partnerships and even limited liability companies that are treated as pass-through entities for federal and California state taxes (or even disregarded altogether) could be directly liable for the myriad of California local taxes. If your business is active in California, especially in the larger municipalities, it's a best practice to assume that some type of business license tax applies. See Tax Alert 2017-209 for details.

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