1. If the city doesn’t accept virtual addresses how do they handle mobile businesses? Do they require everyone to have a premise? Is there even any space available for lease? I would present as much information to your licensing department as possible and then get ready to lawyer up if they are going to be unreasonable.

2. Most banks don’t want to open any small business bank accounts anyway. Keep trying different vendors.

Vending machines are a very tough business, if you don’t have any locations you don’t have a business. Vending machines need to be able to take cards as well as cash these days, you need 10-20 machines to effectively leverage setting up merchant accounts. I’d say if you really want to get into vending go work for a route service company for six months and see what your competition would be doing. They probably are pretty well optimized and not making nearly as much money as you think.