Most places in the United States do not require a license or permit to operate traditional vending machines. Most states do require you receive a sales tax permit to properly collect sales tax. As an operator, you should know that each local health department has different rules and regulations, so it’s best practice to check with your local environmental health department.
Who Do I Check With?
There are two agencies you want to check with, the first should the agency responsible for your state’s business development. You’ll want to check for any required business licenses and health permits required at the state level. For regular vending machines, you’ll most often only need a business license – if that.
After checking with your local state agency, check with the environmental health department that oversees your municipality. Sometimes the local agency will add on to the rules established by the state.
Sales Tax Permit
No matter what state you’re selling in, you’re going to need a sales tax permit so Uncle Sam can collect.
To obtain your sales tax permit, start by visiting your state’s department of revenue or taxation website, as each state handles sales tax registration independently.
You’ll need to fill out an application, which typically requires basic information about your business, such as its legal name, address, type of business entity (e.g., sole proprietorship, LLC), and federal employer identification number (EIN) if applicable. Some states may charge a small fee, while others provide the permit for free. After submitting your application, you’ll receive a sales tax permit number, which you’ll use to collect and remit sales tax on the goods sold through your vending machine. Make sure to display this number on your machine if your state requires it, and stay compliant by regularly filing sales tax returns as instructed by your state’s guidelines.
Liability Insurance
if a machine malfunctions, topples over, or causes injury in any way, you could be held legally responsible. To protect yourself and your business from such risks, it’s wise to invest in liability insurance. This type of insurance covers legal and medical costs if someone gets injured by your vending machine, safeguarding your assets. In addition, there are a lot of locations that actually require certain General Liability insurance cap rates, so make sure to read your contract carefully!
