​The city is saying I need a commercial space as a freelancer?

Hi I will keep this quick,

I started a small video production company after graduating from a film school in Chicago. Two years ago we formed the LLC, bank acc, owner agreement etc. The last thing we did was get approved for a general business license in Chicago (all need one apparently) for an at home business. Two years later we are no longer at that old apartment so I decided to renew my at home business license. Zoning comes back to me and denies our license?? I ask why and they claim because our client base is other corporations we need a commercial address. They said at home business can not work with commercial companies only “clients” like for a wedding video (Also claim a small janitor business can clean homes but once they move to cleaning businesses they need a commercial location to operate out of?). This seems to contradict the ENTIRE film and tv industry or actually any freelancer on planet earth so I am very confused. At this point I luckily have a friend who said I can use his photography studio as an option, I can get a we work space , or maybe I just get an out of state LLC because at this point it seems Chicago does not want my business. Any advice?