The Georgia Lemonade Stand Act lets minors run small stands without any city or county business license, permit, or occupational registration, as long as the stand meets the statute’s conditions. Signed by Governor Brian Kemp on May 3, 2023 and codified at O.C.G.A. § 36-80-30, the law was expanded in 2024 to cover more than just drinks.1Georgia Senate Press. Governor Brian Kemp Signs Lemonade Stand Act2Justia Law. Georgia Code 36-80-30 – Lemonade Stands Here is what the law actually requires.
Which Kids the Law Covers
Two conditions must both be true. The operator has to be under 18, and they must not have earned a high school diploma or a GED.2Justia Law. Georgia Code 36-80-30 – Lemonade Stands A 17-year-old who graduated early falls outside the act even though they are still a minor.
The stand also has to be the child’s operation. An adult can supervise, help mix a pitcher, or drive to the store for cups, but if a parent actually owns or runs the business, the exemption doesn’t apply. An adult using the statute as cover for their own unlicensed venture is just operating without a permit.
What Can Be Sold
The 2023 law originally covered only nonalcoholic beverages that don’t require temperature control for safety. The 2024 amendment broadened the list to include nonconsumable goods and prepackaged foods, so a stand selling lemonade next to packaged cookies or handmade bracelets is still within the act.2Justia Law. Georgia Code 36-80-30 – Lemonade Stands
The temperature rule is the main trip wire. Fresh-squeezed lemonade and iced tea are fine because they are shelf-stable. Dairy smoothies or drinks made with unpasteurized juice typically need refrigeration to stay safe, and those products can push a stand outside the act’s protection. When in doubt, stick to shelf-stable ingredients and factory-sealed snacks.
The $5,000 Revenue Cap
Gross receipts cannot exceed $5,000 in a calendar year.2Justia Law. Georgia Code 36-80-30 – Lemonade Stands That’s total sales, not profit. A child who sold $5,000 in lemonade after spending $3,000 on supplies still hit the cap.
Crossing the line doesn’t trigger a fine. It just removes the stand from the act’s protection, at which point the operation is treated like any other Georgia business, and local governments can require the usual licenses, permits, and occupation taxes. A simple daily log of sales is the easiest way to know where you stand.
Where the Stand Can Go
The stand has to be on private property, with the property owner’s permission.2Justia Law. Georgia Code 36-80-30 – Lemonade Stands The family driveway is fine. A neighbor’s front yard, with their say-so, is fine. Public sidewalks, parks, and roadside shoulders are not covered, and local rules about vending on public property still apply there.
Even on private ground, a stand shouldn’t block a sidewalk or force customers into the road. Complaints about traffic hazards or blocked driveways can still land, exemption or not.
What Cities and Counties Can’t Require
When the stand meets every condition above, no city, county, or other local government in Georgia can require the minor to obtain a business license, health department permit, or occupational registration. Local occupation taxes and regulatory fees are also off the table.2Justia Law. Georgia Code 36-80-30 – Lemonade Stands
The preemption is statewide, so a stricter city council can’t invent its own youth-vendor permit or add extra requirements. The rules are the same in Atlanta as they are in a small town. If a code enforcement officer tells your child they need a permit, pointing to O.C.G.A. § 36-80-30 should end the conversation.
What the Law Doesn’t Cover
The exemption is narrow. A few obligations that parents often assume are wiped out are not.
Federal Taxes
The act removes local licensing and local taxes only. Lemonade-stand income is self-employment income to the IRS, and a minor with net self-employment earnings above $400 in a year is required to file a federal return.3Internal Revenue Service. Check if You Need to File a Tax Return Net means revenue minus supply costs, so a child who takes in $2,000 and spends $1,700 on ingredients and cups owes nothing. For a stand that actually clears real profit, self-employment tax (Social Security and Medicare) plus any income tax may apply.
HOA Rules
The act binds local governments, not private homeowners associations. If your neighborhood’s covenants prohibit commercial activity on residential lots, that restriction may still apply. The statute doesn’t explicitly preempt private covenant enforcement. Check the CC&Rs or ask the board before setting up.
Liability if Someone Gets Hurt
Skipping the health permit doesn’t create a liability shield. A customer who gets sick from contaminated lemonade or trips over the table can still bring a claim, and Georgia parents can be held responsible where their own negligence contributed. Most standard homeowners policies include an exception to the business-activity exclusion for anyone under 21 running a part-time or occasional self-employed business with no employees, which typically covers a qualifying lemonade stand.4American Insurance. Business Use – What Limitations Apply to Personal Liability and Medical Payments Coverage Confirm the specifics with your insurer.
Food Safety Basics
No permit does not mean no standards, and the liability risk above is real. A few habits handle almost all of it:
- Use kitchen tap water or store-bought water and ice, not hose water.
- Wash hands before handling anything and again after touching money.
- Keep the pitcher lidded between customers and off the ground.
- Use a scoop or tongs for ice. Wash whole lemons before cutting and sanitize the board.
- Use disposable cups, hold them from the bottom when serving, and keep the stack covered.
None of it is required by the act, and all of it is cheap insurance against the one bad afternoon that turns a summer project into a claim.