Anyone doing business inside Coachella city limits needs a Coachella business license, issued by the city’s Finance Department under Municipal Code Chapter 5.04. That covers storefronts, restaurants, professional offices, home-based operators, and contractors from out of town who come in to work on a project. You start the process by downloading the application from coachella.org, or by contacting the Finance Department at (760) 398-3502 ext. 725 or businesslicenses@coachella.org.
Who Has to Register
Chapter 5.04 requires a license for any person or entity engaged in trade or offering services for compensation within city boundaries. Home-based businesses are not exempt. If you consult, sell goods online, or provide a service from your residence, the city expects a license, and you’ll also need to confirm the activity is compatible with residential zoning through the Planning Division’s home occupation review.
Each separate location requires its own license. Two storefronts means two filings. Separate business activities run at the same address under different entities also file separately.
What to Gather Before You Apply
- Your Federal Employer Identification Number (FEIN) or Social Security Number.
- A valid California Seller’s Permit from the Department of Tax and Fee Administration, if you sell physical goods.
- Your business structure: sole proprietorship, partnership, LLC, or corporation.
- Names, addresses, and phone numbers for all owners or partners.
- A clear description of what your business does. The city uses this to assign your classification and fees.
- The city’s workers’ compensation form, which must accompany the application.
If you’ll operate under a name that differs from your legal name, California law requires a Fictitious Business Name Statement filed with the Riverside County Assessor-County Clerk-Recorder within 40 days of starting business. The filing fee is $66 for the first business name and registrant, plus $5 for each additional name or registrant on the same statement. This is a county filing, separate from the city license, but the city may ask for proof during the application.
How to Submit the Application
The application form, workers’ compensation form, and current fee schedule are all available on the city’s “Apply for a Business License” page at coachella.org. Submissions and questions go to the Finance Department at (760) 398-3502 ext. 725 or businesslicenses@coachella.org. If your business triggers a zoning review or home occupation approval, the Planning Division has to sign off before the license is finalized, so leave time for that step.
What It Costs
Coachella publishes its fee schedule on the business license page. Total cost depends on your classification and can vary with business type and number of employees.
Every applicant also pays a $4 state fee required by Government Code Section 4467, created through Senate Bill 1186. The surcharge funds disability access programs and applies to both new applications and renewals.
Renewal and Late Penalties
Licenses run annually. The city mails renewal notices before expiration, but the deadline is yours to track. Miss it and the municipal code adds a 25% penalty on the unpaid license tax at the end of each month the license stays overdue. The penalty compounds. A license three months late has picked up 75% in extra charges on top of the original fee.
If you close the business or leave Coachella, call the Finance Department to formally cancel. An open account keeps generating renewal obligations and penalties on a license you no longer use.
Industries With Extra Permits
A standard license covers most operations, but a few sectors face additional layers.
Short-Term Rentals
You need an active permit from the city before you advertise or accept a booking. Submitting the application alone does not authorize you to list. Operators owe a 13% transient occupancy tax on gross rent, plus a separate Tourism Business Improvement District assessment that hosting platforms don’t collect for you. Monthly tax reports are required even in months with zero bookings and are delinquent after the last day of the following month. Payments are online only, by credit card or ACH. Keep records of gross rents and tax payments for three years. Operating without a valid permit draws fines of up to $1,500 for a first citation, $3,000 for a second offense within twelve months, and $5,000 for a third or later violation in the same period.
Cannabis Businesses
Commercial cannabis is permitted but requires three things before you operate: a regulatory permit from the city manager, either a development agreement or a conditional use permit, and a valid state license for each type of cannabis activity. Each activity needs its own conditional use permit. Voter-approved taxes apply on top of standard license fees, with maximum rates of 6% of gross receipts for retail, 3% for cultivation, and 2% for manufacturing. Actual rates can differ under individual development agreements. Current rates and forms are on the city’s Tax Payment Information page.
Sidewalk Vendors
Sidewalk vending is governed by a separate ordinance consistent with California’s SB 946. Vendors must keep an unobstructed three-foot walking path and maintain minimum distances from fire hydrants, bus stops, loading zones, driveways, ADA ramps, and areas designated for temporary special event permits. The ordinance sets specific setbacks for each; check the current rules before you set up.
One More County Obligation
If your business owns personal property and fixtures with an aggregate cost of $100,000 or more, California law requires a Business Property Statement filed with the Riverside County Assessor by April 1 each year. This covers equipment, furniture, computers, and other tangible assets. Missing the filing brings penalties from the county assessor, separate from anything the city charges.