Business Guide · Starting a Business
City or county? Get the right license
Where your business sits decides who licenses it, what it costs and how long it takes.
The right Sacramento business license depends on one question: is your business inside a city, or in the unincorporated county? The City of Sacramento, the County of Sacramento and each of the other cities in the county run their own systems, with different names, fees and rules.
New owners often search for “a Sacramento business license” and find three different answers. All three can be right. The City of Sacramento does not issue a business license at all; it requires a Business Operations Tax certificate. Sacramento County licenses businesses only in the unincorporated area, such as Arden-Arcade, Carmichael, Fair Oaks and Orangevale. And Folsom, Elk Grove, Rancho Cordova, Citrus Heights, Galt and Isleton each handle their own businesses.
This guide explains each path, with the fees the County of Sacramento set on July 1, 2026, and the other registrations most businesses need before opening day. If you are just getting started, read our 10 steps to start a business alongside it.
Who licenses your business?
| Where you operate | Who handles it | What you get |
|---|---|---|
| City of Sacramento | City Revenue Division, 915 I Street | Business Operations Tax certificate, renewed every year |
| Unincorporated Sacramento County | County Department of Finance, Business Licensing, 700 H Street, Room 1710 | General Business License (3 years), plus a Special Business License for some activities |
| Folsom, Elk Grove, Rancho Cordova, Citrus Heights, Galt, Isleton | That city’s own office | Each city’s license or business tax; check its website |
Inside the City of Sacramento: the Business Operations Tax certificate
The City of Sacramento does not issue a general business license. Sacramento City Code Chapter 3.08 requires every business that operates in the city, or does business with the city, to obtain a Business Operations Tax (BOT) certificate and pay the tax every year. The city publishes a searchable list of businesses that pay it on its online data portal.
How the tax is figured depends on the type of business:
- Sales and service: businesses that sell items or provide a service pay based on annual gross receipts.
- Professionals: state-licensed accountants, architects, attorneys, dentists, engineers, physicians, veterinarians and others pay based on years licensed in California and number of employees.
- Brokers: a flat rate plus an amount for each employee the principal broker supervises.
- Commercial rental: owners who lease commercial property pay based on gross rent.
- Residential rental: owners of four or more rental units, separate from the Rental Housing Inspection Program.
- Cannabis: 4% of gross receipts, paid monthly.
How to get a City of Sacramento BOT certificate
- Apply online or on paperUse the city’s online portal, or email the application to finance@cityofsacramento.org, mail it to the Revenue Division or bring it in person.
- Add a home occupation permit if you work from homeIt is a one-time fee and must be submitted with the business tax application.
- Pay the feesFees are due at the time of application.
- Pass zoning reviewThe city routes each application to the Community Development Department to confirm the business is in an appropriately zoned location.
- Receive your certificateAfter zoning approval, the city mails the BOT certificate.
- Renew every yearRenewal notices go out in February, May, August and November for the quarterly renewal periods; you can renew online with your account number and the last four digits of your federal ID or SSN.
Some business types also need a Special Business Permit from the city; check the city’s Revenue Division page before you open. Questions go to Permits and Taxes at (916) 808-8500 or businesspermits@cityofsacramento.org.
In unincorporated Sacramento County: the General Business License
Sacramento County regulates businesses in the unincorporated area to enforce ordinances that protect the public and prevent nuisances. Unlike the city’s certificate, the county license is not a tax and is not based on revenue. Every business based in a commercial location or a home in the unincorporated area needs a General Business License, which the county issues after reviewing the business activities and the zoning at that street address.
A few types are exempt, including banks and credit unions (check cashers are not), long-term residential facilities, church facilities used for religious purposes, libraries and most agriculture.
The county encourages applicants to email the Department of Planning and Environmental Review at SacPlan@saccounty.gov to confirm the business is allowed at the site before applying and paying the fee. Fees are not refundable, so a five-minute email can save you money and months on the wrong lease.
Special Business Licenses
Some activities need a Special Business License in addition to the General License, even when the business is based in a city or outside the county. The most common include handyman, landscaping and gardening, housekeeping, towing, rubbish hauling, massage and mobile food vending. The Sheriff’s Department approves these after a background review; every owner, partner and spouse on the license must be fingerprinted and photographed, within five business days of filing. Businesses that sell tobacco also need a Tobacco Retailer License.
Sacramento County license fees (effective July 1, 2026)
| License or permit | New | Renewal |
|---|---|---|
| General Business License | $262.60, valid 3 years | $124.30 home-based; $252.48 commercial location |
| Special Business License | $237.87, valid 1 year | $231.11 |
| Employee Permit | $221.00 stand-alone, valid 1 year; $15.24 with a Special License | $221.00 stand-alone |
| Tobacco Retailer License | $560.55, valid 1 year | $455.98 |
| Fingerprinting (Sheriff) | $32.00 for the business owner; $74.00 for each partner, spouse or other owner | One-time cost |
All fees include the $4.00 state surcharge required by Government Code 4467. The county adds an $18.00 late fee to renewals received after the expiration date, and a license expired for more than 90 days is closed, so the owner must apply again as new. Card payments carry a processor’s convenience fee.
How long it takes
The county says review of a complete General Business License application can take up to 45 days. Special Business Licenses take longer because fingerprint records go to the California Department of Justice, but by ordinance no more than 90 days. Licenses are mailed once approved, and a denied applicant receives written notice and a chance to appeal. General and Tobacco Retailer licenses cannot be transferred to another person, location or type of business.
Home-based and online businesses
Working from home or selling only online does not exempt you. Sacramento County says an internet-only business based in the unincorporated area still needs a General Business License, and may need a Special License depending on what it sells. The county applies its Home Occupation Standards in the zoning code to home businesses. Inside the City of Sacramento, a home business needs a one-time home occupation permit in addition to the Business Operations Tax certificate.
The other registrations most businesses need
A local license is one piece. Depending on your business, you may also need:
- An EIN from the IRS, free, for your bank account and payroll; see how to get an EIN.
- A business entity with the California Secretary of State if you form an LLC or corporation; see our business structure guide.
- A Fictitious Business Name Statement if you operate under a name other than your own legal name. In Sacramento County it is filed with the Department of Finance, which also handles business licenses; the information on it is public.
- A seller’s permit from the California Department of Tax and Fee Administration if you sell taxable goods.
- EDD registration within 15 days once you pay employees more than $100 in a calendar quarter.
- State and industry permits, such as health permits for food or state professional licenses. California’s CalGold website, run by the Governor’s Office of Business and Economic Development (GO-Biz), lists permits by city and business type.
Each of these carries its own taxes and deadlines; our California small business taxes guide puts them on one calendar.
Common mistakes with a Sacramento business license
- Applying to the wrong government. A Carmichael or Fair Oaks address is county; a Midtown address is city. Check the address first.
- Signing a lease before the zoning check. A license can be denied for zoning, and fees are not refunded.
- Forgetting the Special License for landscaping, cleaning, handyman or mobile food work in the unincorporated county, even when the business is based elsewhere.
- Letting a county license lapse past 90 days, which means starting over as a new applicant.
- Skipping the home occupation permit for a home business inside the City of Sacramento.
Key terms
- Business Operations Tax (BOT) certificate: the City of Sacramento’s annual business tax registration, required instead of a business license.
- Unincorporated area: parts of the county outside any city’s limits, governed by the County of Sacramento.
- General Business License: the county license required for businesses based in the unincorporated area.
- Special Business License: an added county license for certain activities, approved after a Sheriff’s background review.
- Home occupation permit: a permit that allows a business to operate from a residence under local zoning rules.
The bottom line: start with the address. Inside the City of Sacramento, get a Business Operations Tax certificate and renew it every year; in the unincorporated county, get a General Business License and any Special License your work requires; in the other six cities, follow that city’s rules. Check zoning before you sign anything, and keep every renewal date on your calendar.
Free help in the Sacramento region
You do not have to work through these decisions alone. SCORE Sacramento pairs owners with volunteer mentors, many of them retired executives, bankers and accountants, at no cost. The Sacramento Valley Small Business Development Center offers free one-on-one advising on financing, budgeting and financial statements. The SBA’s Sacramento District Office can explain loan programs and connect you with lenders, and community lenders such as California Capital and Opening Doors serve owners who need smaller loans or extra support. Browse our Business Resources and the free business help guide for more.
Key takeaways
- Which license you need depends on whether your address is in a city or the unincorporated county.
- The City of Sacramento issues a Business Operations Tax certificate, not a business license, renewed yearly.
- Sacramento County’s General Business License costs $262.60 new and lasts 3 years (fees from July 1, 2026).
- Handyman, landscaping, cleaning, towing and mobile food work in the county also need a Special License.
- Confirm zoning before you sign a lease; license fees are not refundable.
Frequently asked questions
Does the City of Sacramento require a business license?
The city does not issue a general business license. Instead, Sacramento City Code Chapter 3.08 requires every business operating in the city to obtain a Business Operations Tax certificate and pay the tax each year.
How much is a business license in Sacramento County?
For the unincorporated county, a new General Business License costs 262.60 dollars and is valid for three years, under fees effective July 1, 2026. Renewals are 124.30 dollars for home-based businesses and 252.48 dollars for commercial locations.
Do I need a business license to work from home in Sacramento?
Yes. In the unincorporated county, home-based businesses need a General Business License. Inside the City of Sacramento, you need the Business Operations Tax certificate plus a one-time home occupation permit.
How long does it take to get a Sacramento County business license?
Review of a complete General Business License application can take up to 45 days. Special Business Licenses take longer because of fingerprinting, but by ordinance no more than 90 days.
Which activities need a Special Business License in Sacramento County?
Common examples include handyman, landscaping and gardening, housekeeping, towing, rubbish hauling, massage and mobile food vending, among others listed by the county.
Sources
- City of Sacramento: Business Operations Tax
- City of Sacramento: Different types of businesses (Business Operations Tax)
- City of Sacramento: Renew your Business Operations Tax account
- Sacramento County Department of Finance: Business Licensing and Fictitious Business Name Statements
- Sacramento County Department of Finance: Business Licensing FAQs (fees effective July 1, 2026)
- CalGold: California permit assistance (GO-Biz)
- CDTFA: California City and County Sales and Use Tax Rates
- EDD: Step 1, Register as an Employer
Keep reading on Inksight
- Business Credit vs. Personal Credit: What Every Small Business Owner Should Know
- How to Choose a Business Structure in California: Sole Proprietorship, LLC, S Corp or C Corp
- Business Banking 101: How to Choose and Open a Business Bank Account
- Small Business Funding Options: Loans, Grants and Investors
- Business Resources: all guides →
