Business License FAQ

Business License Tax is an annual tax for doing business within the incorporated area of the City of Foster City. The Foster City Municipal Code requires that you obtain a business license when you conduct any business activity within the City - even if your business is located OUTSIDE the city limits or you have a business license from another city.

Per Municipal Code 5.24.010, the following tax rates apply:

•   A minimum of $200.00 for gross receipts between $0.00 and $267,000 for general contractors or a minimum of $100.00 for gross receipts between $0.00 and $133,500      for all other businesses;
•  0.075% ($0.75 per $1,000) for gross receipts between $133,500 and $4,400,000;
•  0.088% ($0.88 per $1,000) for gross receipts between $4,400,001 and $8,500,000; 
•  0.1% ($1.00 per $1,000) for gross receipts between $8,500,001 and $12,650,000; 
•  0.113% ($1.13 per $1,000) for gross receipts between $12,650,001 and $16,750,000;     
•  0.125% ($1.25 per $1,000) for gross receipts between $16,750,001 and   $20,900,000;
•  0.138% ($1.38 per $1,000) for gross receipts between $20,900,001 and $25,000,000;
•  0.3% ($3.00 per $1,000) for gross receipts over $25,000,000.

The tax calculator below can help calculate your estimated taxes.

Tax Calculator

A business license is required in the City of Foster City when one of the following occur:

• Conducting any kind of business within the City of Foster City.
• Have a fictitious business name certificate registered using Foster City address.
• Have a State Board of Equalization resale permit registered using Foster City address.
• Have a listing in the Commercial Directory Yellow Pages, Business White Pages, the newspaper, local business guides, real estate multiple listing books, internet, or any other similar listings.
• Have a home-based business.

Always check with the Planning Department at (650) 286-3232 or planning@fostercity.org to ensure that your business is permissible in the location you are considering, this includes home occupations.

Appropriate permits and/or approvals from Planning, Building, Police and/or any other department of the City may have to be secured before your business may start. All applicable federal, state, county and city laws, ordinances or regulations must be followed before your business may start.

Complete the Business License Application and return to the HdL Business Support Center. Support hours are 8am – 5pm, Monday – Friday. A completed application can also be returned to us via email at fostercity@hdlgov.com or fax it to 909-348-0465.

It usually takes up to 24 hours to process the completed application. By then, you should receive an email from us either requesting more information, or with the balance due invoice to pay. You should receive your Business License Tax Certificate by email within 24 hours once the payment has been made. Business license tax fees are non-refundable.

Every business must meet zoning requirements to ensure that the business activity and site are compatible. BEFORE SIGNING any lease or rental agreement, we suggest that you check with the City's Planning Department to make sure your business activity is appropriate for the area's zoning, and it will not require a public hearing or special parking considerations. Call (650) 286-3232 for additional information.

The business inspection fee is a one-time fee of $295.00.

Attached is the City's 2025 Master Fee Schedule for reference.