Legal Question in Business Law in California

I run a small home operated business out of an un-incorporated part of my county. I recently delivered some product to another city in a different county. The details of the transaction were conducted over the phone. The contract was signed via the mail. The Payment was also mailed to our location.

Now the city is trying to charge me a city business license fee for doing business in their city. My stance is that the business never took place in their city.. and simply because the check was originally written while in their city does not mean that the business took place in that city.

What is the case law if any say on this topic... and what is my legal standing to not pay the bill?


Asked on 10/14/09, 9:22 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Case law could be researched by your attorney, along with review of the City codes and regulations they may be trying to apply. In general, a company doesn't need a business license to ship or deliver a product into a city. Otherwise, every FedEx truck could be followed around by city snoops and track back to demand a license application and fee from every shipper in the country. You need to refuse on proper grounds, and appeal as necessary, subject to a cost analysis: how much is the license versus how much is the legal fight going to cost, versus the value of the 'principle' of this? If serious about getting legal consult and help, feel free to contact me.

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Answered on 10/15/09, 1:18 pm
Bryan Becker Becker Attorneys

A review of this City's municipal code will be necessary to properly advise. Because each City/County applies their business license regulations differently, more specifics will be needed. This doesn't sound like it needs to be an expensive, drawn out process, but you may want to consider having an attorney review this issue as well as more importantly your broader small business legal structure and compliance. Paying one license fee may not be expensive, but if your doing business throughout California it could add up fast.

Regards,

Bryan Becker

Becker Attorneys

877.201.8728

www.becker-attorneys.com

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Answered on 10/15/09, 7:49 pm


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