Business Licenses Q&A: Alarm Monitoring Nexus

Audience Question: We are an electronic alarm monitoring company with one central monitoring station. Would we have nexus at the locations we are monitoring or should we just need the license for the city where the monitoring station is located?

Joe's Response: Great question. We recently did a large research project that concerned this very issue. Assuming you are doing monitoring only — meaning no sales solicitation or installation of the units — then there are still a substantial number of jurisdictions (such as Maryland) that require you to get a business license and/or register each alarm with a local police department.

Amanda's Response: Many authorities consider you to have a nexus at the monitoring location because you are generating revenue from that customer and the nexus is based on revenue generation. Aside from possibly being subject to a general local business license for the customer location being monitored, many localities also enforce a special alarm company license which includes the company monitoring the alarms in that locality.

(Author's Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg