You Might Need A Permit To Run A Lemonade Stand Unless You Live In These States

School is out, the sun is shining, and your kid is looking to make a few extra bucks over the summer. A lemonade stand seems like a no-brainer! It's easy, everyone loves lemonade, and it's a great way to foster entrepreneurial tendencies while making sure your kid gets some time outside. But it turns out that, with the exception of a handful of states, you need a permit to operate a lemonade stand — yes, even if the purveyors of the sweet drink are just kids.

The only states where you do not need a permit to sell lemonade are California, Nevada, Utah, Colorado, North Dakota, Nebraska, Texas, Missouri, Louisiana, Illinois, New York, Vermont, Rhode Island, and Connecticut. However, it's always good to check state laws, as this could change, and some states have certain caveats. For example, you don't need a permit to have a lemonade stand in California as long as it's not in a storefront, operational for longer than 90 days, or carbonated, as selling bubbly drinks does require a permit.

If you want to start a lemonade stand in another state, in addition to a simple classic lemonade recipe and a sign that really sells your product, you'll need to consult the health department and the state agriculture department for information about the specific permits and/or licenses you need. If you don't get the proper paperwork in order, you could face large fines or even criminal charges, in some cases.

If you're in a state that does require lemonade stand permits, you'll likely have to complete some combination of business licenses, which allow you to legally operate, and vendor's permits, which make it possible for you to legally sell your goods (aka lemonade) to customers. Depending on where you want to set up your lemonade stand, you may need additional permits. For example, selling at a farmer's market or in a public space may require extra forms and fees, while selling in your front yard may be a bit easier. Either way, you'll have to follow not only state laws but local regulations as well. 

For your business's sake, make sure there's something that sets you apart from all the other lemonade stands out there. Consider a recipe that incorporates brown sugar or something a little more involved, like one of our favorite lemonade recipes that takes the refreshing beverage to the next level.

Setting up your lemonade stand may require getting a tax ID and reporting money earned to the IRS. Whether you'll have to pay taxes and how much you'll owe on your earnings from the stand will depend on the state you're in, and it's important to make sure you're in compliance to avoid penalties and other legal trouble. You can typically earn up to $400 before profit becomes taxable. It may seem like a lot of hoops to jump through for a summer business, but setting up a lemonade stand legally can be a good way for kids to learn responsibility while earning a little cash and having lots of fun.