In Utah, kids are now free to pursue their entrepreneurial dreams without having to worry about securing permits.
The new state law is known as SB 81. It states that a county will no longer require a business permit or license from businesses run by children. That means an entrepreneur younger than 18 years old is now exempted from filing paperwork.
Kids have gotten into trouble in the past due to lack of business permits.
In case you’re wondering, business permits have actually been a problem for a number of kids in the past. According to a report from the Institute of Justice, Overton, Texas police once stopped seven and eight-year-old girls Zoey and Andria Green for selling lemonade without a permit. Meanwhile, 11-year-old Madison Root was unable to sell his mistletoes at a holiday market in Portland, Oregon because he didn’t have a permit either. And in New Jersey, Eric Schnepf and Matt Molinari were stopped by police from going door to door in order to shovel snow before an incoming snowstorm.
Four years ago, a business ordinance had been passed with a similar goal. Its aim was to exempt “lemonade stands and similar operations run by children” from getting business permits. This time, however, the new SB 81 law is making sure that the rules apply to the entire state.
Home based businesses benefit from the new law too.
On the other hand, it’s not just kids that are benefiting from the new law. SB 81 also states that home based businesses which only operate occasionally will also receive exemption from securing business permits. Bill sponsor Senator Jacob Anderegg said the local licensing fees simply encourage a “perverse incentive to raise money” for the government.
According to a report from the Good News Network, as many as 24,000 home based businesses each year will benefit from the new rule. SB 81 would allow them to save $30 a month in business licensing fees. At the same time, the new rule can also save them as much as $720,000 a year.
It now remains to be seen if other states would adopt similar laws to promote and protect children’s entrepreneurial spirit.