Legal Question in Business Law in California

City Requiring Business License for Realtors

The City of Long Beach sent out a letter this week requiring real estate licensees working under a broker to purchase a city business license. (The city referred to Long Beach Municipal Code 3.80.210) As far as I know, no city has ever required real estate agents to purchase a city business license when working under a broker.

I am a real estate licensee currently working under a broker at a brokerage with a Long Beach business license.

Is this legal?

(Obviously, this will bring a MASSIVE revenue for the city from the thousands of agents working here)


Asked on 10/11/04, 7:12 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: City Requiring Business License for Realtors

Are you an employee of the broker, or self employed? Do you get a W-2 or a 1099? I think if you meet most of the tests for self employment you are in business and should have a business license.

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Answered on 10/12/04, 3:11 am
Ken Koenen Koenen & Tokunaga, P.C.

Re: City Requiring Business License for Realtors

Yes, this is legal. It happens here in Pleasanton, too. Your broker pays his business tax based upon HIS gross revenue, not yours. You must pay based on your revenue.

This will also apply to an agent from outside of Long Beach who takes a listing within Long Beach. They will normally require that he obtain a license, too.

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Answered on 10/12/04, 11:59 am


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