Business Services

Starting a Business in Panama City

We are very pleased that you have decided to establish your business in our beautiful community, and we would like to help you succeed in becoming a vital part of our business commerce. Our Business Services Department offers several options to help you get started, including guidance with the local business tax receipt process, free business assistance and pre-application meetings to help you understand the requirements to start or expand your business. 

Types of Local Business Tax Receipts

The Business Services Department oversees the application and licensure of businesses located within the city limits of Panama City. There are three local business tax receipts types, including:

  1. Merchant
    • This local business tax receipt is issued for those who engage in retail and/or wholesale sales from a business location, including short-term rental and hotel stays. Those who obtain a merchant local business tax receipt must collect the 1% merchant fee that is remitted monthly to the Business Services Department. 
    • Per Section 7-53 of the Panama City Code of Ordinances, the merchant fee shall apply only to the first $5,000.00 collected for any single item of merchandise sold. 
  2. Occupational
    • An occupational local business tax receipt is required for businesses located in the city limits of Panama City that provide a service and charge a fee for the service. Annual license fees range from $25.00 to $2,500.00, depending on the occupation/service type. The Panama City Code of Ordinances Section 7-53 outline the amounts of local business tax receipts. 
  3. Home Occupational
    • The City of Panama City issues local business tax receipts for home-based businesses. A home occupation is an occupation or business activity that is service-oriented, or a business conducted primarily online.

Local Business Tax Receipt Process

All businesses within the City of Panama City limits, including home-based and short-term rentals, are required to register with the city and collect or pay appropriate fees. Before applying, you may check to see if your location is within the city limits by visiting the city GIS map.  

  1. Register with required entities:
    • Unless you are doing business in your given name (i.e. John Doe), you must register with Sunbiz and provide that information upon applying for your local business tax receipt. Other applicable information varies depending on your business/occupation type. For example, licensed professions need to provide copies of state licensure such as cosmetologists, real estate brokers, contractors, etc. If your business is regulated by a state agency you must provide verification of registration with agencies such as the Department of Business and Professional Regulation (DBPR), Florida Department of Health (DOH), Florida Department of Agriculture and Consumer Services (FLDACS), etc. 
  2. Apply for a City of Panama City Local Business Tax Receipt: 
    • Create a free, online GovOS account to apply for a local business tax receipt application.
    • Once your application is complete and submitted to Business Services, it will be routed to five other city departments for approval, including:
      • Planning & Zoning
      • Fire Department
      • Code Enforcement
      • Environmental Compliance (F.O.G.)
      • Building Department
    • It typically takes 7-10 business days to receive comments from all departments. You may track your application status in your GovOS portal.
    • Should any departments have comments or are unable to approve, a member of Business Services will reach out to notify the applicant. It typically takes 7-10 business days to receive comments from all departments. 
    • After all departments have approved, the local business tax receipt can be issued, and the applicant will be responsible for any applicable fees or collecting the 1% merchant fee depending on business type. 

If you need more information on what your business will require, please call or email Business Services.

Door-to-Door Solicitations

Solicitors need to obtain a Peddler's Background Check from the Panama City Police Department, obtain the proper amount of surety bond and have an active local business tax receipt. Chapter 18 of the City of Panama City Municipal Code outlines the procedure to register as a door-to-door solicitor within the City of Panama City. 

For more information about the requirements, please contact the Business Services Department. 

Yard & Garage Sales Permits

A permit must be obtained before holding a yard and / or garage sale. Permits can be issued for a maximum of 7 days, with only 3 permitted per location in a year. Permit applications may be downloaded through this link.