San Fernando, CA asked in Business Formation and Business Law for California

Q: hello if my business license was expired nut now renew. am i able to charge storage fees b4 or once license up todate

i had a car that was a total lost. The insurance company refuse to pay storage fee or any fees other than a tow bill. Due to my business license being expired. My business license has been renew and its up to date.

Can they get away with it.

I can not charge storage fees even after business license is up to date. CAN THEY DO THAT?

1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: Under California law, the legality of charging storage fees when your business license was expired depends on the specific regulations governing your business sector and local jurisdiction. Generally, operating a business without a valid license can invalidate your right to enforce contracts or agreements made during that period, including charging for services like storage. Once your business license is renewed, you typically cannot retroactively charge for services rendered while the license was expired, as this would be against the principles governing licensed business operations.

Insurance companies often adhere strictly to legal and contractual obligations. If they refused to pay storage fees due to your business license being expired at the time those fees were incurred, they are likely acting within their rights. This stance is generally supported by the need to ensure that all transactions and services are provided by duly licensed businesses, ensuring compliance with state regulations and consumer protection laws.

However, now that your business license is up to date, you can charge for services moving forward, but this does not retroactively validate charges made during the period of expiration. It's advisable to communicate with the insurance company to explain your current standing and negotiate any possible resolution. If disputes continue, consulting with a legal professional who specializes in business or contract law could provide clarity and assist in determining the best course of action based on the specifics of your situation.

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