Legal Question in Business Law in California

I'm a distributor for a MLM company and I've never heard of Distributors needing to get business licenses before, but today I got a call from the City I live in and they said I needed to get a business license to continue operating in the city. Is that common in your experience? Have you ever heard of that happening before? I tried explaining what I do to them, but I don't think they got it and said if I wasn't a direct employee then I need to get a business license. Just wondering if they are correct? Thanks.


Asked on 12/21/10, 9:21 pm

2 Answers from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. The fact you are a distributor means you are operating a business and this requires a business license. This is extremely common and relatively easy to obtain. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/27/10, 8:16 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You are operating a business. You need to have a license from your city or county. You also need to file tax returns, comply with workers' comp. laws and all those other nasty responsibilities our laws heap upon businesses and their operators. Get real. MLM distributing is no different than what WalMart and Costco do.

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Answered on 1/02/11, 9:14 pm


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