It is so exciting to make the decision to finally invest in your dreams of breaking out of your nine to five and into the free world of passive income by building your ice vending machine empire. But it can also be difficult to figure out all the rules and regulations you need to prepare before making the investment. These regulations vary from state to state so it is important to do local research to see exactly what your state requires.
Typical Permit Requirements
If you own a vending machine in the state of Florida, you are required to register as a sales and use tax dealer before engaging in your business, according to the Sales and Use Tax on Vending Machines document found online. Tax requirements vary across the country so make sure to look into your state’s tax laws.
Each state typically requires a vending machine license to be acquired before you can place your machine. To submit your application, you will need at least these three things:
- Federal Employer Identification Number
- Sales tax number
- Plan for where you will install the vending machine
In addition to your vending machine permit, you may also need to get it inspected by your local health department. In order to do that, you will need to contact your city’s business licenses and permits board to schedule your inspection if your city requires it. At this point, the machine should be in a place where you plan to keep it so that the inspector can determine if the location and items in the machine meet the city’s regulations.
Examples of Different Laws in Different States
In California, operators of machines need to obtain a seller’s permit. However, If your products are sold for 15 cents or less or are non-taxable, no permit is needed. For example, parent-teacher associations or equivalent school or library support groups are considered tax-exempt and therefore do not require a permit. Once you acquire one permit, you are allowed to have as many machines as you want. That same rule also exists in Colorado, each machine should have a decal as well.
If you reside in Massachusetts, operating vending machines requires a license issued by the commissioner. The approved form by the commissioner should also contain the signature of the applicant or applicants if there are many. Afterwards, your machine location must present a commissioner-approved label which contains your operation license number.
These examples are solely for reference purposes. Make sure to speak with your local ordinances for specific requirements that are needed in your state of residence.
Other Things to Keep in Mind
Speak to your local offices for up-to-date information on rules and regulations for your vending machine in your area. Checking regularly to ensure that you’re keeping everything up to date. Licenses and permits require renewals. After a certain period of time, so make sure you keep the deadline in mind and prepare your materials accordingly.