Do I Need a Permit to Operate a Vending Machine?

A vending machine business requires permits, including a business license, EIN, and compliance with state and federal regulations. Proper location approval, ADA compliance, and product labeling are essential for legal operation and profitability.

By Brad Nakase, Attorney

Email | Call (800) 484-4610

Have a quick question? We answered nearly 2000 FAQs.

Table of Contents

1. Do you need a permit to run a vending machine business?

2. What is the process for obtaining a license to operate a vending machine?

3. How to be compliant with state regulations

4. How to get permission to install a vending machine at a specific location

5. Approaches to Communicating with Business Owners for Authorization

Do you need a permit to run a vending machine business?

A business license is required before operating a vending machine company. Yeah, you heard that correctly. You can’t just set your vending machine down anywhere you like. Despite the lack of direct human interaction, running a vending machine is a regulated industry.

Registering as a limited liability company (LLC) in your state is the way to go if you want to own a vending machine, just like any other type of retail food seller. To ensure accurate sales tax payments, you must also apply for an EIN with the tax and fee administration.

Plus, a seller’s permission is required. The American Disability Act (ADA) and label regulations are additional considerations for vending machines.

Rest assured, you are not alone if you are feeling anxious about all of this. Our goal is to simplify and expedite the process. You will have all the information necessary to launch a vending machine company after reading this article.

What is the process for obtaining a license to operate a vending machine?

For small companies, there are essentially three stages to getting a license:

Your city or county government should be able to help you get an EIN (Employer Identification Number).
Establish a limited liability company to run your vending machine company.
Follow all applicable federal, state, and regional regulations, as well as any labeling or accessibility standards.

Determine Your Vending Machine’s EIN

Obtaining an Employer Identification Number (EIN) from the IRS is hassle-free and costs nothing. You may submit your application by visiting the official website.

In addition, whether you’re filing taxes as an LLC owner or a vending machine owner, you’ll require an Employer Identification Number (EIN). An EIN is also required in the event that you intend to employ people in the future, such as an accountant or a machine manager.

State Requirements for Forming an LLC

Forming a limited liability company (LLC) is the next stage in acquiring a vending machine license. If your vending machine company ever gets into legal difficulties, you may shield your assets by forming an LLC and keeping your personal and business money separate.

Your limited liability company (LLC) will serve as the tax filing agent and representative for your machinery. An LLC shields you from individual responsibility in the event that one of your vending machines causes harm to a third party.

Choosing a name, filling out the necessary forms, and submitting them to your state are all steps in forming an LLC. To find out how to form an LLC in your state, the simplest thing to do is look up the process online. An official government website will pop up (ending in a .gov), and it will guide you step-by-step.

Imagine for a moment that you are in New York City. Doing the above search would take you to https://dos.ny.gov/forming-limited-liability-company-new-york. Here you would finish the process, submit your paperwork, and pay the fees that apply.

In the United States, forming an LLC might cost anything from $150 to $350.

Completely Satisfy All ADA and Vending Machine Label Regulations

To assist customers in making more informed food selections, the Food and Drug Administration (FDA) establishes regulations for vending machine labels.

Compliance with label regulations is mandatory for owners of more than twenty vending machines. Anyone with less than twenty vending machines is not obligated to comply with the FDA regulations, but they have the option to do so.

In any case, you should observe them as they aid in protecting your vending machine company from litigation.

Displaying calorie information for items you sell is required under the vending machine label requirement. Here is a step-by-step guide from the Center for Science in the Public Interest:

Calories should be displayed for foods that do not have nutritional information available until after purchase.
A placard either connected to or placed next to the vending machine will provide the calorie count.
Make sure that the calorie count is shown in a font size that is no smaller than the food names, option numbers, or prices on the machine.

Products do not need to have their calorie counts shown if the nutritional labels are displayed in the machine. However, product labeling is the most effective strategy for assisting consumers in making educated dietary choices, as the majority of vending machines do not make it possible to read nutrition labels.

It is your responsibility to make your product accessible to those who use wheelchairs or have other mobility impairments in accordance with the Americans with Disabilities Act (ADA). Vending machines must have its interactive components placed between fifteen and forty-eight inches above the ground in order to comply with the Americans with Disabilities Act Standards for Accessible Design (ADA).

In 2020, the “upside down rule” was modified to the ADA vending machine requirements, which require owners to consider, “What would happen to my machine if the building it’s in was flipped upside down?”” The Americans with Disabilities Act does not apply to your machine if it has the potential to collapse onto the ceiling. In other words, only permanently installed (bolted-down) vending machines need to be ADA compliant.

People with disabilities should also be able to easily utilize your vending machines.

How to be compliant with state regulations

Obtaining a seller’s permit begins with finding your state in the IRS business directory. To obtain a paper application, you can go to the municipal building (or equivalent) in your area. Go to the “Doing Business in the State” section and then find the “Business Licenses and Permits” link.

Once you have that information, you may look into the local regulations regarding vending machine permits and requirements. In order to learn what is required of a vending machine, you must first learn about the necessary permits. Searching for “vending machine requirements in [your state]” could help you locate it if you struggle to locate it otherwise.

Also, think about the products you intend to offer. Not just because you have to figure out how profitable it is, but also because of the permissions. It is possible that you may be required to submit an application for a beverage license if you intend on selling drinks.

The initial machine will likely cost you roughly $100 in business license fees, with subsequent devices costing less.

You may now apply for your state’s business license online. In addition to the Environmental Health Services Department, you might be required to register with your local health department or agency. You will need to include both commercial and technical facts on your vending machine. Before you start operating the vending machine, make sure all of the food and drink are at the correct temperature and not over their expiration date in case the inspector pays you a surprise visit.

A local business lawyer in your state can help you out if you’re very confused about the steps to acquire a vending machine license. A lot of them provide free consultations, so you may get your questions answered without spending a ton of money.

An attorney can take care of the registration paperwork on your behalf if you want to hire one.

How to get permission to install a vending machine at a specific location

You may begin searching for ideal sites for a vending machine once you have completed the necessary steps to register your business.

You should investigate the local market as a first step in launching your vending machine company. Where can I get the most foot traffic with my vending machine? With the correct placement, you may easily earn hundreds of dollars each month. In a poor spot, you may not even recoup the money you spent on stocking your machine. Yikes!

The best way to determine if a place is suitable for a vending machine is to visit it in person. Your machine should ideally be located in a very populated area with plenty of passing foot traffic.

Your target locations should have fifty or more individuals passing by each day. Some common places to find vending machines are businesses, schools, shopping centers, and malls.

You need to be prepared to sell your vending machine to the property owner once you’ve decided on a few places. Companies who make vending machines like it when you tell them you’re selling a company rather than a machine itself. An expertly crafted vending machine proposal with a clear value proposition, branding, and design should be at your disposal. Get a vending machine contract ready as well.

You should emphasize how your company might profit from leasing space to them. Put simply, you need to convince the property owners of the benefits of installing a vending machine in their business.

Approaches to Communicating with Business Owners for Authorization

Cold phoning a potential target’s location is one approach. Just pick up the phone, say hello, and request to talk to the right individual. This person is often a manager. You may also locate their contact details online, similar to an email from a vending machine company. Put together a brief vending machine proposal and attach it, or summarize your offer and include it in the message.

Cold calling may not be the most glamorous method of acquiring customers, but it often yields excellent results. You should mentally prepare yourself to send many messages that will go unreceived. Particularly in the vending industry, it is an integral aspect of doing business.

Another strategy that might work if you’re sociable is going door-to-door. To pitch your vending machine location, you physically visit the institution, ask to speak with the management, and make your presentation. Make sure to have a business card with your contact information and a pamphlet outlining your offer to leave with them.

It is important to keep in mind that the objective is to communicate with the supervisor. If you want swift and conclusive answers, you should talk to the people who make decisions at the company. The faster you learn how to run a vending machine and put it into operation, the more money you can make!

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

Best Free Payroll Software for Small Businesses and Startups in 2025

Find the best free payroll software options for small businesses and startups in 2025 with essential tools and flexible features. Compare user-friendly platforms offering global payments, tax calculations, employee portals, and cloud access at no cost.

What Services Does a California Business Lawyer Provide?

A California business lawyer helps protect your company by providing legal guidance on structure, taxation, contracts, and compliance. Their services ensure you avoid costly mistakes and navigate disputes, allowing you to focus on growth.

Where Can I Find a Business Lawyer?

Find a skilled business lawyer to navigate legal matters like contracts, trademarks, and liability issues. Protect your company with expert legal advice and support.

What Are the Requirements for a Business Contract Termination Letter?

A contract termination letter must clearly state the reason for termination, reference the original contract, and follow required notice procedures. Ensuring proper documentation and adherence to contract terms helps prevent legal disputes and wrongful termination claims.

Are Verbal Contracts Binding in California?

A verbal contract can be legally binding in California, but proving its terms in court is often difficult. Written agreements provide stronger legal protection, reducing risks of disputes and misunderstandings.

Where Can I Find a Business Lawyer Near Me?

Find a business lawyer by seeking referrals, researching credentials, and ensuring they specialize in your industry’s legal needs. Schedule consultations to assess their expertise, compatibility, and pricing structure before making a final decision.

What Is the Statement of Information and When Is It Required?

A Statement of Information is a required filing for California corporations and LLCs, providing key business and leadership details. Filing deadlines vary, requiring annual or biennial submissions to maintain compliance and avoid penalties.

What Is Indemnity and How Does It Apply to Insurance Contracts?

Indemnity protects individuals and businesses from financial loss by ensuring compensation for damages under legal agreements, including insurance contracts. Various indemnity policies cover liability, property damage, and professional risks, with terms defining coverage limits and exclusions.

What Is Gross Profit and How Is It Calculated in Financial Statements?

Gross profit represents the revenue remaining after deducting the cost of goods sold, helping businesses assess production efficiency and pricing strategies. Calculating gross profit involves subtracting direct expenses from revenue, providing insights into cost control and financial performance.

What Is Gross Income and How Does It Differ From Net Income?

Gross income includes all earnings before deductions, while net income is what remains after taxes and expenses. Understanding these figures helps determine tax obligations, loan eligibility, and overall financial health.

What Is Beneficial Ownership Information and Why Is It Important for Compliance

Beneficial ownership information helps prevent financial crimes by increasing transparency in corporate structures. Businesses should stay informed on reporting requirements to avoid penalties and ensure compliance with evolving regulations.

What Is Arbitration and How Does It Resolve Disputes?

Arbitration resolves disputes by allowing a neutral third party to make binding decisions, offering privacy and efficiency over traditional litigation. Businesses and individuals prefer arbitration for its speed, cost savings, and adaptability, ensuring enforceable outcomes across various legal frameworks.

What Is a Corporation, and How Does It Differ From an LLC?

A corporation is a separate legal entity owned by shareholders, while an LLC offers flexible management and pass-through taxation. Corporations require stricter compliance and structured oversight, whereas LLCs provide fewer formalities and adaptable ownership structures.

How Do You Incorporate a Business, and What Are the Benefits?

Incorporating a business creates a separate legal entity, protecting personal assets and offering potential tax advantages. This process enhances credibility, simplifies ownership transfer, and provides growth opportunities while requiring compliance with specific regulations.

How Do You Get an LLC, and What Are the Benefits of Forming One?

An LLC provides liability protection, tax flexibility, and management freedom for business owners. Follow seven simple steps to establish one efficiently.

How Do You Start a Business, and What Are the Legal Requirements?

Starting a business in California requires careful planning, legal compliance, and financial preparation. From selecting a business structure to obtaining permits, tax registration, and funding, each step is crucial for long-term success.

How Do Accrual Accounting and Cash Accounting Differ in Financial Management?

Accrual accounting records transactions when they are earned, while cash accounting records them when money changes hands. Choosing the right method impacts taxes, financial planning, and cash flow management for businesses.

Do I Need a Permit to Operate a Vending Machine?

Are There Grants Available to Start a Business?

Government and private grants provide funding to help entrepreneurs start businesses, with eligibility varying by industry, location, and business type. Opportunities include federal programs, state initiatives, and private grants supporting startups, research, and minority-owned businesses.

What Is a Stock Corporation in California – General Requirements?

A stock corporation in California raises capital by selling shares, granting investors ownership and voting rights while maintaining limited liability. These corporations, classified as C or S, follow specific legal steps, including filing Articles of Incorporation and drafting corporate bylaws.

Is a Contract Valid Only if It Is in Written Form?

A contract can be legally binding whether written or verbal, but some agreements, such as real estate deals, require written documentation. A valid contract must include clear terms, mutual agreement, legal capacity, consideration, and intent to create enforceable obligations.

What Is a Cash Receipt and Why It Matters for Business Transactions

A cash receipt records the exchange of cash during a transaction, detailing the amount, parties involved, and purchase specifics. Maintaining accurate cash receipts supports tax reporting, financial management, and dispute resolution while ensuring compliance with audits.