I'm working with some friends trying to build up a tuning shop and one suggested that we get some simulators in the shop. (We got to know each other in sims before going RL.)

Do we need special licenses for using LFS on those simulators? Are normal £24 S2 licenses OK for this?

On that page they talk about you Needing the license if you're charging people to play on the simulator. If that's the case then yes you would.

If you just have a computer sitting there and allowing the customers to play with it then I don't think you need a commercial license (could be wrong). Best bet is to just contact one of them

Quote from http://www.lfs.net/?page=commercial_use :

"This is the situation where you use Live for Speed in a permanent or temporary simulator setup and you make profit by charging customers who use the system....
A commercial license requires a small recurring payment and gives you permission to charge customers and make profit from the use of Live for Speed."

My guess is that you shouldn't need a licence if its a free to use sim but the Promotional part of the licence states you must display the LFS Logo and some text where the sim is. So as long as you had the logo and text as a banner then LFS gets advertising and possibly some new S1/S2 buyers

I believe what you quoted states if they are charging people then they have to pay the devs a recurring payment