The L.A. City Attorney's Office filed charges against the club for creating dangerous conditions, including overcrowding and fire hazards.
Some of the charges against the club stem from an incident last June when the fire department shut down the facility for have more than 1,000 people inside. The safe occupancy is 553.
The Hollywood Supperclub faces 17 counts in all, including charges for conspiracy, excessive occupancy load and illegal discharge of fireworks.
According to the complaint, the fire department had previously ordered the owners to stop using fireworks and to stop having trapeze artists perform over the crowd, but the club continued those practices.
In a statement, L.A. City Attorney Carmen Trutanich said: "Businesses should not be allowed to profit from endangering the lives of patrons."
But in a statement, Supperclub co-owner Jerry Garcia said the club takes pride "in providing extraordinary customer service in a safe environment to our patrons."
According the City Attorney's Office, at times exits were blocked, flammable bedding was used for seating and fire doors were propped open. Those are conditions city officials say the owners must be held accountable for to prevent potential tragedy.
A deadly fire at a nightclub in Brazil last week is clear evidence, officials say, of just how dangerous the situation can be.