California

Does my kid need a permit to operate a lemonade stand? Here’s what California law says

Lemonade stands are a popular way to teach children entrepreneurial skills. Here’s what you should know before launching your venture.
Lemonade stands are a popular way to teach children entrepreneurial skills. Here’s what you should know before launching your venture. Getty Images/iStockphoto

As California’s relentless heat continues, lemonade stands can be an option for your kid to pocket some cash before the summer ends.

Depending on which state you live in, permits are required to operate a lemonade stand. But what about California? The Bee reached out to the California Department of Tax and Fee Administration’s Office of Public Affairs to understand the rules surrounding lemonade stands and permits across the state.

Here’s what we found:

Can my child legally operate a lemonade stand in California?

Yes, as long as the child’s stand falls under the following guidelines, according to the California Department of Tax and Fee Administration:

  1. The lemonade stand is not operating in a storefront;
  2. The stand is open for less than 90 days;
  3. Drinks are prepared cold;
  4. The lemonade is not carbonated.

Cups of lemonade — homemade or store bought — sold from a temporary stand are grouped under to-go food sales, according to the California Department of Tax and Fee Administration’s dining and beverage industry rules. The money your child makes is not taxable when drinks are sold à la carte, and therefore a permit is not required.

The same rule applies to fruity drinks, milk and iced tea.

You must have a permit to sell alcoholic and carbonated beverages, including sparking water and soda.

This story was originally published August 14, 2023 at 12:17 PM with the headline "Does my kid need a permit to operate a lemonade stand? Here’s what California law says."

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