In Illinois, businesses must obtain the correct licenses to operate legally. With various types of business licenses available, choosing the right one can be challenging.
Two licenses apply to entertainment or performing arts businesses. The first is the Public Place of Amusement (PPA) license. The City of Chicago’s Small Business Center (SBC) requires a PPA license for any business that “produces, presents, or conducts any type of amusement.” This includes venues charging admission or requiring a minimum purchase, as well as those with a capacity of 100 or more people, even if no admission fee is charged. A PPA license is also necessary for businesses renting space for events open to the public.
Public Place of Amusement (PPA) License
Examples of businesses that need a PPA license include:
- Live Theaters & Concert Halls
- Nightclubs
- Dance Clubs
- Sports Stadiums
- Movie Theaters
- Bowling Alleys
- Comedy Clubs
- Karaoke & DJs
- Businesses with two or more pool tables
- Businesses with three or more arcade games
Other businesses may require a PPA license depending on the nature of their entertainment offerings.
Performing Arts Venue (PAV) License
The second license for venues offering live performances is the Performing Arts Venue (PAV) license. This license applies to smaller theaters, specifically those providing live cultural performances in venues with a maximum capacity of 500 people. If the theater is not the primary purpose of the building, such as in churches or schools, the capacity can extend to 1,000 people. However, PAV license holders cannot offer live music.
Exceptions exist for businesses that include entertainment or performing arts in limited capacities. These businesses do not require a PPA or PAV license in certain situations, including:
- Venues with a capacity of 99 or fewer people and no admission or minimum purchase fee
- Musical groups of 8 or fewer performers in restaurants, hotels, or retail spaces with no admission or minimum purchase fee
- Banquet halls with a retail food license hosting private, non-public events
- Entertainment within private clubs or lodges for members and guests only
- Health clubs or racquetball clubs for members and guests
- Businesses with three or fewer arcade machines
- Businesses with one pool table
These exceptions allow for entertainment or performances without requiring the full licenses that are typically needed for public amusement venues.
Understanding the necessary business license is crucial. 1818 can help identify the correct license and ensure your business remains compliant with city regulations. Call us at (312) 779-1818 or fill out our online contact form for further assistance and expert advice.
