The city we’re located in has recently informed us that practically every person who steps foot into our coworking space is required to get a business license.
We asked, what if someone had just rented a conference room for an hour? Do they still need a business license? “Yes.”
What if they’re a remote worker for another company, and not a business owner? “Yes.”
What if someone from out of town visits for a day to get some work done? “Yes.”
What about people who walk into a coffee shop and work out of there for a day, they need a business license? “Yes.”
I feel this is kind of ridiculous – let’s say someone is here to pass the time and get some work done while they’re at it, and they book a day pass… they’re still required to get a business license, and an annual one at that, according to them?
I’m just curious if this is common in other cities or if there’s some kind of “loophole” I’m not seeing.
I have never hear of this! I am based in Canada and have worked from several coworking spaces in BC and Ontario, Canada and Seattle, Washington.
Your coworking space is a landlord that is leasing space for people to use, you are not liable to enforce municipal laws regarding business licenses. What you can do is add a clause to your Membership Agreement, such as:
“Members are responsible for obtaining and maintaining all licenses, permits, and insurance required for their business operations.”
It’s then up for the city staff to determine if someone needs a business license or not and to uphold city bylaws, not your responsibility!
This is highly irregular. I would keep asking questions and email or reach out to your local small business center and let them know that the city is throwing up road blocks for your business specifically. It’s not right. Fight!