City Council Gives Nod to $1 Business License For High Tech Startups

New high tech and other small startup businesses coming to Pasadena may qualify for a reduced business license fee of only $1 for the first year under plans given initial approval on Monday by the Pasadena City Council.

The Council approved the idea of friendly business license fees for startups and voted to have staff bring back formal change to the City’s schedule of fees and taxes. The change is expected to take effect on Jan. 1, 2015.

Under the plans approved by the Council, the cost of a business license for qualified businesses would be $1 for the first year, and then revert back to typical rate that averages $390 for small businesses. The decision was aimed primarily at qualified, small start-up companies with no more than five employees that can help support the growing start-up community in Pasadena.

“We are thrilled with the critical collaboration and support that we have received from the City of Pasadena as we work to nurture and expand the local start-up, innovation community. This is a terrific example of how the City Council’s leadership is embracing our local start-ups,” said Andy Wilson, Co-Chair of Innovate Pasadena.

Innovate Pasadena, www.innovatepasadena.org, is a collaborative Pasadena organization of tech leaders, business entrepreneurs, city officials, venture capitalists and other interested parties who are working together to foster a pro-technology and high-tech startup environment in Pasadena.

The Council’s action came as Innovate Pasadena and the City are co-sponsoring a week-long Innovation Summit event bringing together bringing together an impressive variety of creative entrepreneurs, tech experts and others for networking, idea sharing and inspiration.

For small start-ups with limited resources, every dollar counts, said Mark Goodstein, Managing Partner of the Design Accelerator in Pasadena.

“It’s all about investing as much as possible in new product and technology,” Goodstein said, “Innovative technology and design start-ups have always played a vital role in our local economy. We are excited to see the City support early stage companies when they are most fragile.”