vending machine license PA

Do I need a vending machine license in PA?

vending machine license PA

Do I need a vending machine license in PA?

Operating vending machines is one of the most popular side hustles out there, and it’s not hard to understand why. They’re relatively inexpensive to set up, easy to manage, and can provide a solid stream of passive income. However, many aspiring operators get held up because they don’t understand PA’s vending machine licensing requirements. 

So does PA require a license to operate a vending machine? 

The short answer is no. There is no general licensing requirement that applies to vending machines in Pennsylvania. HOWEVER, depending upon what county you’re in and what types of products you’ll be stocking your vending machine with, you may have to obtain one or more licenses or permits in order to do business. 

This article breaks down some of the licensing and permitting requirements that you should be aware of if you’re planning to operate a vending machine in Pennsylvania. 

(Download our free one page guide on navigating business licensing in Philadelphia.)

 

PA Sales Tax License

While there’s no general licensing requirement for vending machines in Pennsylvania, depending upon what you’re selling you may be required to apply for a Sales, Use and Occupancy Tax license. 

A sales tax license authorizes a business to collect sales tax in Pennsylvania. It is required for any business selling goods or services that are subject to Pennsylvania sales tax. 

Fortunately, many of the products typically sold in a vending machine are exempt from Pennsylvania sales tax. That includes packaged baked goods, chips, pretzels, crackers, candy, gum, milk, iced tea and iced coffee, juice, and bottled water. However, some food items that may be offered in a vending machine are subject to Pennsylvania sales tax. That includes, soft drinks, meals, sandwiches, and hot beverages (e.g., hot chocolate, tea, etc.).

Additionally, vending machines selling more non-traditional items are generally required to collect sales tax. This includes vending machines offering cosmetics, hair, electronics, and toys. 

Pennsylvania’s sales tax license is free, and must be renewed every 5 years. You can apply for it at https://mypath.pa.gov/

Other PA Licenses

In Pennsylvania, most business licensing occurs at the city and county level. While there are often similarities between counties, each county’s licensing requirements are different. So you’ll have to do a little research to figure out what your county requires.  

For example, Philadelphia does not have a license or permit requirement specifically for vending machines. However, Philadelphia is one of the few counties in Pennsylvania with a general business license that every business operating in the city is required to have (called a Commercial Activity License). 

The City of Reading on the other hand does have a specific permit for vending machines. In addition to needing a business privilege license, vending machine businesses in Reading need to obtain one Vending Machine Permit. One permit covers all of the operators machines within the municipality.

So once you select locations for your vending machines, check the licensing requirements for your local municipality to make sure things are in order. 

 

PA Business Licensing Resources

Business licensing is a topic that many small business owners and side hustlers choose to ignore. Figuring out the proper licenses for your business may be a pain in the ass. But, it’s worth it so you can run your business without having to look over your shoulder. 

The good news is, there are resources out there for entrepreneurs who want to keep their business legally compliant. 

The first place to turn for advice on business licensing should be a mentor or industry trade association. The folks in your industry have been there, and done that. And they can give you the honest scoop on licensing in your industry, including who you can talk to speed up the process. 

Your local elected official’s office can also help you figure out the licensing requirements for your business. The folks in your local elected official’s office are there to serve you. And they want to see local businesses succeed because it creates economic opportunities for the entire community. As lawmakers, they should also have the proper knowledge to help guide you. So don’t be afraid to call or stop by your local elected officials office for help. 

Many communities in Pennsylvania also have a local Community Development Corporation, also known as a CDC. CDCs exist to support members of the community individually, and to support growth within the community as a whole. A win for a small business owner in their community is a win for them. So they are typically more than willing to serve as a resource. 

Additional resources include your local SBA or SCORE chapter, and local libraries that provide resources for small business. 

 

Seeking a Lawyer

Successful business owners understand that if their business is going to grow, they have to delegate. If you don’t have the time or energy to handle business licensing on your own, your best bet is to hire an attorney to do it for you. 

MZA Legal is a virtual law firm helping solopreneurs and side hustlers create a solid legal foundation for their business. We can take care of the licensing process for you, so you can focus your time and energy on growing your business. We’re transparent about our pricing and our process, so schedule a free discovery call today to learn more about how we can help you keep it legal.