In the News: Does your town make it difficult to run a business?

[Pesso]

Hey Newsies,

Today we’re talking about local laws that make it difficult to run a business, with an article from ABC 7 News reporting on San Francisco, California passing revoking laws to actually make it easier to run a business in the city. I’d love to hear your experiences on how your area laws make it harder or easier to open shop.

ABC 7 News: SF makes changes to planning code to make it easier for businesses to get permits

A lot of business owners complain about laws and regulations that make it harder to open and run a business. The article explains that the city of San Francisco is changing that by passing new laws to make it easier to obtain permits and grow businesses. These laws overturn the old difficult processes of obtaining permits, changing business types, and overall limiting what shops can do. 

With the changes, owners can now more easily change and expand their business models to offer other products. Along with removing permitting fees and reducing the waiting period of time before being able to open, the changes also removed the limits on the number of businesses allowed in certain neighborhoods. One of the now removed restrictions even prevented guitar players from performing in cafes, and another change set up an expedited process to obtain liquor licenses.

Overall these changes sound like they’re going to allow more businesses to open and existing ones to get more creative to try new things. This can tremendously benefit the area, the economy, and current and aspiring business owners.

My ice cream shop was in a suburban neighborhood of Queens, NY which was technically part of New York City, even though it didn’t look or feel like it. But because of that, businesses in our quiet neighborhood were subject to the same laws and regulations designed to govern one of the busiest cities in the world. We felt the impact through the rigorous permitting process, strict regulations, high tax rates, and more. 

We also heard from @Nephilimstudios in a Seller Community post who shared that their town had ordinances that essentially banned tattoo shops in their art district. They worked hard with a lawyer and incredibly were able to help get the law changed, and were able to open up their studio! We love to hear about businesses pursuing advocacy like this.

What’s your perspective:

• Does your area have any laws that make it difficult to open or run a business?

• What regulatory challenges have you faced in opening or growing your business?

Can’t wait to hear your thoughts!
Pesso

This article is for informational purposes and does not constitute legal advice. For guidance or advice specific to your business, you should consult with a qualified legal professional.

[Lovewell]

Hey! 

Isn't this a juicy discussion. 

I would say overall our city in theory is very vocal about wanting to cheer on small business but then pass things or introduce things to our city that doesn't help us. 

I would say that fees to even have someone consider a permit are outrageous so that's not helpful but I do understand that making an investment can connect you more to what you are doing. 

We opened in may of 2020 which was the height of many regulations so those challenges can really go without saying. 

I think more areas need to not just talk about small business but create practical ways to support them. 

It is amazing the SF is making it easier on paper to run a business but many small businesses and businesses in general are leaving that city because of the current conditions there. 

So again- overall there needs to be action backed up by speech. We truly love where we do business and have great relationships with those in local government and feel like we can bring our concerns to them. 

[sugarlab]

Ooof I remember how long it took for the city to look at our construction plans. It was MONTHS! Totally agree with what you said about actions not matching up with speech. 

The county (Environmental Health) is also pretty rough for us. Right now I'm dealing with getting permits for our new space. It was already an approved bakery; we're not making any significant changes to equipment or menu, and trying to get a straight answer on what I need to do is ridiculous. Like I fully understand wanting to protect the public, especially at food establishments. But the hoops that need to be jumped through just feels like overkill. I've been told that Ventura County is one of the words in the state in terms of difficulty opening a restaurant. I keep thinking, what do I need to run for in order for that to change? There has to be a happier middle ground for all. 

[TCSlaguna]

We had a GRAND OPENING sign on the door when we changed locations. 

On Day 2 we got a letter from the city with a picture of the sign stating it was against city code, we need to immediately take it down or we will be fined for each day it is up. 

[Doran]

I wonder what the thinking is behind this? You're not going to keep it up indefinitely.  Why the push back?  My neighbor is going out of business after 30+ years and she put up a Closing sale sign.  The city made her take it down.  I just don't get that.  

[Doran]

Monterey is very difficult to do business in.  I'm in "old town" so I pay higher city taxes.  I pay a street tax, city tax, county tax and then state + fed.  Plus, the buildings are mostly historic.  That means no changes can be made without a LOOOOONNNNNGGGGG approval process without actual rules.  Just committee members with feelings.  So expanding a bathroom to be ADA compliant or installing a ramp is near impossible but also legally required.  So go figure on that one.  It makes many buildings just off limits to do most business open to the public.  Then there are the water credits.  

Businesses fall into certain water credit categories. Restaurants, hotels, and salons are the highest tier. You can only do business in a building that matches that tier of water credits.  So many buildings (that have owners who sold off the water credits long ago) sit empty because they don't have any water credits.  You the business owner are responsible for finding out the credit situation.  The landlord knows but won't usually say.  Since it isn't public information you have to get the landlord to sign something saying you can have the information.  It is a mess.  So it is just safest to only go with listings that explicitly state the credit situation.  Even being in a building with other like business or previous business doesn't guarantee the water credits are still on the building.  

It is a pretty small town.  Most of the buildings are owned by one of about five families.  Then they are managed by one of two companies.  As a tenant, you have few rights or options... and no one in the city council will care much since most of them are related.  

Also, there is a strict sign ordinance.  So for my building, I'm not allowed to have a sign on the building or sidewalk.  There is also not an address on the building.  Tough on new customers so I usually stand out front when I have a first-timer.  

As I'm typing this I realize how many more weird quirks Monterey has and I'm thinking it may be time to move to the next city over! 

[Stacelyn24]

Fortunately North Carolina makes it relatively easy to become a business owner.  File the proper paperwork and pay the costs and you're pretty much in...unless your business needs inspections.  Besides them being a little backed up, if you've followed the pretty easy guidelines you should be fine.  We even don't have to actually have an actual "business license or privileged tax as it's called" because the stated couldn't come to agreement with proper terms on how large and small business should have to pay state and local fees...so until that's resolved it's been placed on hold 🙂

[mksavage]

The City of El Paso actually has a stated motto of: "Open for Business!" The problem is, what they mean by that is, they're open for very large businesses who want to relocate here. So, all of the regulations, permits, tax incentives, etc., are geared toward that demographic and disregard the small business community. In addition to that, they're incredibly disorganized, so it's very difficult to get information, talk to an actual person who can help you, move things forward, get permits approved, etc. During COVID, it really seemed like the City was stepping up and looking for ways to support small business, but most of it has ended up being ill-informed, poorly executed, and mostly performative. It's actually kind of funny if you can keep a sense of humor about it. (Sometimes I can, sometimes I can't, haha.)

[MudFire_Dex]

Permitting in our county is very disorganized and a little wild right now - since a dramatic change in 2020 in particular that eliminated renewals as a simple fee of less than $100 and a one-sheet piece of paper. Now, every year now you have to reapply for your business license including notarized affidavits and copies of your driver's license and they won't assess the fee until after you refile basically the full permit application from the initial business permit and certificate of occupancy - and then they put a fee in your account to pay that changes per your business receipts, employees, and structure. If you fail to do so or didn't know about the new process (they never notified anyone that didn't go online to check up on why the former easy process hadn't happened) - they issue a court summons.....and send an officer to your door to let you know. Our whole street had that happen last year and so many businesses were confused and upset. Prior to moving the application online the renewal process was a one sheet page that was SO EASY to use. 

[Bronze_Palms]

The permit process was painful. It would be great to have been able to project the estimated investment of a build in advance; I have seen other cities do this. Also, timeline expectations would have better prepared me.