Business Licenses and Permits:: Published by Corporation Service Company » Blog Archive » Business licensing crackdown on ‘pop-up firms’ in Minnesota

Local councillors in Ludec City, Minnesota (MN) have amended business license bylaws in a bid to crack down on so-called pop-up businesses.

The revisions will tighten restrictions on business owners operating out of vehicles, temporary structures and moveable stands, according to newspaper Ludec Rep. Under the new bylaws, portable companies will now need to obtain a business license.

“With this new bylaw it’s going to make it more possible to steer these businesses to come to the city and enforce them to get a license,” Ken Woitt, director of planning and development for the city, told the newspaper.

With the global economic downturn of recent years putting pressure on business owners, roaming or pop-up businesses are becoming increasingly popular nationwide.

Store-based retailers are coming under increasing pressure to turn a profit, with cash-strapped shoppers looking for alternatives to the traditional mall retailer, such as online, to reduce costs.

While encouraging small businesses may prove key to America’s economic recovery, many states now face the dilemma between encouraging entrepreneurs and protecting licensing laws.