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UPDATE: Kids Fined $500 for “Operating Lemonade Stand Without a Permit”

UPDATE: Kids Fined $500 for “Operating Lemonade Stand Without a Permit”

UPDATE:  Our young entrepreneurs, after moving their stand off the corner to avoid traffic, were permitted to re-open, and the county waived the fine.   And, as usual, there was a bit more to the story.  Apparently the rule was instituted to prevent rampant booth-building all over the sidewalks and the kids were considered just another example.  Now, though, peace prevails in Bethesda.

As school wraps up for the year, many children may be thinking of starting their own mini-busineses. Whether it is babysitting, mowing lawns or setting up a lemonade stand, summer vacation offers many opportunities for budding entrepreneurs. But for some, the business lessons learned could be costly.

The US Open golf tournament was held this week in Bethesda, Maryland. Many nearby residents used this as an opportunity to make a little bit of extra money. Some of them rented out parking spaces on their property. Others, like the children in the Marriot and Augustine families, set up lemonade stands to offer refreshments to those who passed by.

According to Yahoo! News, the parents of the Marriot and Augustine children were issued a fine of $500 by a Montgomery County inspector for operating a lemonade stand without a vendor’s permit. Apparently the county is not planning to issue fines to every single lemonade vendor. They argued that they take the size of the operation into account before deciding whether to issue a fine and that a child making $5 or $10 is different from children earning hundreds of dollars.

These children, who were planning to give half of the profits to a pediatric cancer charity are disappointed and frustrated. One of their mothers, Carrie Marriott, said that it is sending the children the message that there is no American dream.

This isn’t the first time that budding young entrepreneurs have been slapped with a fine for selling lemonade. According to CBS News, the same thing happened in 2010 when 7-year-old Julie Murphy failed to get a $120 temporary restaurant license for her lemonade stand. According to the CBS article, “Technically, any lemonade stand — even one on your front lawn — must be licensed under state law.”

In this case however, officials added that they were unlikely to go after every kid who set up a lemonade stand. In this case, the fact that Julie Murphy was set up in a prominent area during a public event (despite the fact that her lemonade stand was on her front lawn), meant that she was singled out.

What does this mean for child entrepreneurs? If they may or may not get a fine, won’t that scare children (and their parents) away from starting up mini-businesses? Perhaps a different category of permit or other type of permission should exist for kids who want to give their entrepreneurial skills a try on a weekend here and there or on a few sunny summer afternoons.

These businesses are such a great learning opportunity for children. There must be a way to allow them to pursue their dreams and test out running a business without making it prohibitive.  Got any ideas?  Tell us in comments!

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Image credit: Rochelle, just rochelle on flickr

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219 comments

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8:55PM PDT on Oct 20, 2011

These children were acting from the heart; I can't say what part of the anatomy the authorities were acting from.

8:50PM PDT on Oct 20, 2011

"Apparently the rule was instituted to prevent rampant booth-building all over the sidewalks"

Was this in reaction to actual "rampant booth building" or is it just a fantasy of some paranoid city or town council person?

8:46PM PDT on Oct 20, 2011

this is so wrong! poor kids.

6:26PM PDT on Aug 15, 2011

Please tell me this is a spoof from "The Onion".

9:19PM PDT on Jul 2, 2011

It's a lemonade stand. So they want $120 permit so the kid can sell home made lemonade to try to collect $20? Did these people ever have a lemonade stand? maybe they can pay for the future generation to have their stands. I'm sure they didn't follow the rules either, so maybe they should get arrested instead...

4:30PM PDT on Jun 28, 2011

Bah, humbug!

10:05AM PDT on Jun 27, 2011

Leona Helmsley was soooo right, only the little people pay taxes.

6:57PM PDT on Jun 26, 2011

Pathetic! Regulating us , even the tiniest among us, to such a degree, while big Corps, Wall Street, Banksters et all have been gettinc away with billion lost to revenue that could help keep us out of recession? What is wrong with this picture?

1:38PM PDT on Jun 26, 2011

This is so stupid.They are just kids, leave them alone*

1:38PM PDT on Jun 26, 2011

Nothing like the joys of government run amok! this is what we get for electing officials who are more concerned with building their personal positions and the influence of their offices rather than tending to the needs of the people. Please note that this is an equal-opportunity phenomenon in which neither party owns a monopoly.

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