Business Licenses and Permits

The City of Manhattan Beach, California now requires real estate agents to have a business license.  While many agents are angered about this move, the city claims it is a matter of fairness.  The city’s municipal code states that anyone earning revenue and engaged in business in the city must pay the business license tax.  In the past agents have been looked at as outside the scope of the tax because they usually work for real estate brokers who have a business license.  This fact leads to an argument being raised by many agents that real estate will now be double taxed in the city.  Real estate agents are calling for a public hearing on this move, but the city can legally enforce the law without a hearing because the law is already on the books.

As cities tighten their belts, enforcing formerly unenforced business license laws is an easy way to increase revenue.  In the past laws on the books have not been enforced for several reasons, usually lack of funding, lack of staff, or in this case ambiguity of the law.  The best course of action for any business owner is to work with the city to make sure you are properly licensed according to the city’s laws.

Amy Lee, Business License Research Analyst, Corporation Service Company

Tags: business license, California, real estate