As per above, most every CITY has their own specific rules about businesses. And it goes up from there. And it's a royal pain, if you ask me.
As for making your business legal, I suggest doing it the right way right away. Whether or not it "makes sense" to operate your business legally could, I suppose, be debated. But in my book, you don't circumvent the law because it's a bother or an expense. Think about the ramifications of that mindset. Do you want to live in a society that lives by the rule of law or not?
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