As the weather begins feeling summer-like across California, an iconic time-tested tradition among young entrepreneurs is defrosting — having a lemonade stand.
In some states, lemonade stand operators are required to secure a business permit before setting up. What does California require?
Multiple Sacramento Bee readers reached out to the service journalism team earlier this year, wondering if the state mandates licensing or permitting for local lemonade stands.
For a previous story, we consulted the California Department of Tax and Fee Administration’s Office of Public Affairs to answer whether a permit is required. Here’s what we found:
Is a permit required to operate a lemonade stand in California?
No.
According to a 2023 email from the California Department of Tax and Administration Office of Public Affairs, a child can legally run a lemonade stand without a seller’s permit.
“Generally, a person selling cold food to go is not required to obtain a seller’s permit,” the state tax department added.
Cups of lemonade, homemade or store-bought, sold from a temporary stand are labeled as to-go food sales, according to the state tax department’s dining and beverage industry rules.
The money you and your child make from the stand is not taxable when drinks are sold à la carte, meaning a permit is not required.
The same rule applies to fruity drinks, milk and iced tea.
Just be sure your stand is not operating in a storefront and is up for less than 90 days, the state tax department stated. Drinks should be served cold without carbonation.
You must have a permit to sell alcoholic and carbonated beverages, including sparkling water and soda.
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Camila Pedrosa is a service journalism reporter at The Sacramento Bee. She previously worked as a summer reporting intern for The Bee and reported in Phoenix and Washington, D.C. She graduated from Arizona State University with a master’s degree in mass communication.
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Brianna Taylor was a reporter for The Sacramento Bee.