Vending Machine License and Permits: What You Need to Operate
Quick answer: to run a vending machine business in the United States you usually need a business registration, a sales tax permit from your state (in the states that have a sales tax), and a local business license from the city or county. If your machines sell perishable food, you may also need a health or food permit, some states and cities license or require a decal for each machine, and operators with 20 or more machines must post calorie information under FDA rules. Requirements differ by state and city, so check with each agency before you place a machine.
This guide is general information, not legal or tax advice. Confirm the rules with your state and local agencies.
Licenses and permits a vending business may need
| Requirement | Who issues it | When it applies |
|---|---|---|
| Business registration (LLC, corporation, or a “doing business as” name) | Your state’s business filing office | When you form the business or trade under a name |
| Employer Identification Number (EIN) | IRS | For entities and anyone with employees; also used to open a business bank account |
| Sales tax permit (seller’s permit) | State department of revenue | In states with a sales tax, before you collect money from sales |
| Local business license or business tax receipt | City and/or county | Where the city or county requires one |
| Health or food permit | State or local health department, or the state food agency | Often for perishable or “potentially hazardous” food such as sandwiches and dairy |
| Vending machine license or decal | Some states, counties or cities | Per machine, where required |
| Calorie labeling | FDA (federal) | Operators who own or operate 20 or more vending machines |
Sales tax on vending machine sales
Most states tax vending sales, and some treat vending prices as tax-included, so the tax is calculated from your total receipts rather than added at the machine. Florida, for example, publishes divisors for calculating the tax from vending receipts and requires a separate registration for each county where machines are located. See our Florida vending license and sales tax guide. Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, although Alaska allows local sales taxes. Ask your state’s revenue department how vending receipts are taxed and how often you must file.
Health and food permits
Machines that sell only prepackaged snacks and canned or bottled drinks often need no food permit, but rules vary. Machines that sell food needing refrigeration or heating to stay safe (sandwiches, salads, milk, yogurt) commonly need a permit and an inspection from the state or local health authority. Ice and water vending machines may need their own permits. If you plan to sell fresh food, check with the health department before you choose the machine; see food vending machines and refrigerated vending machines.
FDA calorie labeling for vending machines
Under the FDA’s vending machine labeling rule, operators who own or operate 20 or more vending machines must disclose calories for the food they sell, unless the buyer can see the calories on the front of the package or the Nutrition Facts label before buying. Calories can be shown on a sign, sticker or placard near the item or selection button, or on an electronic display. Operators with fewer machines can register voluntarily. The rule took effect on December 1, 2016.
How to get licensed: step by step
- Register the business with your state and get an EIN.
- Register for sales tax with your state’s revenue department.
- Apply for the local business license in each city or county where you will place machines.
- If you will sell perishable food, ice or water, contact the state or local health authority about permits and inspections.
- Ask whether your state or city requires a per-machine vending license or decal.
- Put the location agreement in writing and arrange insurance; see vending machine contracts and vending machine insurance.
For the full start-up picture, read how to start a vending machine business.
Frequently asked questions
Do you need a license to own a vending machine?
Usually yes: at minimum a sales tax registration where your state has a sales tax, and often a local business license. Food, ice and water machines can need health permits, and some places license each machine.
How much does a vending machine permit cost?
It varies by state, county and city, and by what the machine sells. Check the fee schedules of each agency where you will operate.
Do you need a permit to put a vending machine in your own business?
Often yes: sales tax still applies to the machine’s sales, and local business licensing and health rules apply wherever the machine is.
Does the FDA regulate vending machines?
The FDA requires calorie disclosure from operators who own or operate 20 or more vending machines, unless calorie information is visible on the package before purchase.