Business Licenses and Permits

A property owner in Grass Valley, California recently found out the hard way that he was required to have a business license.  According to TheUnion.com, Kenneth Meyers received a letter from the city alerting him to unpaid licensing fees.  Meyers does not own a business in the traditional sense, but he rents commercial space to other businesses.  In Grass Valley all property owners who rent space to others are required to have a business license. 

Before receiving the letter from the city Meyers had never heard of the business license requirement.  Meyers has rental property in several other towns, but none of those towns require a business license.  Additionally Myers was puzzled why he was just hearing about the business license requirement when he had rented property for four years in the city.  The city offered an explanation that we’ve been seeing a lot lately, they don’t have the staff to do audits.  Notices only go out when potential violators are brought to their attention.

License requirements for property owners are not uncommon across the country.  Requirements and fees will usually depend on the number of units being rented and the type of property.  If you rent property be sure to check with your local government to see if a business license is required.

Amy Lee, Business License Research Analyst, Corporation Service Company

Tags: business license, California, landlords