What is a Peddler’s License and How Do You Get One?

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It conjures up images of ragged vagabonds pulling carts of full of knick-knacks, but what is a peddler? Simply put, a peddler is a traveling vendor who sells goods from door to door or street to street. You’ve probably seen them at parades hawking their wares, outside stadiums before a big game or in touristy areas like Times Square and the Las Vegas Strip.

It’s a low-cost, portable way to start a business, but just like any other business, you’ll need a license. In this case, you’ll need a peddler’s license/peddler’s permit (or transient merchant license as it’s sometimes called) to legally operate.

This blog post will not only answer the question “what is a peddler’s license?” it will explain how to obtain a peddler’s license as well.

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What is a Peddler’s License?

In most states, a peddler’s license is the exact same thing of a business license. The main difference is that a business license is issued to home, online, or brick and mortar companies, while  a peddler’s license is issued for businesses that go door to door, sell on the streets or generally are a business that does not have a certain location.

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How Much is a Peddler’s License?

The fee varies from state to state, but generally run less than $100. In some states, a number of other factors are considered to determine the fee. For example, the fee for a peddler’s license in Florida depends on the industry, geographic service and a few other factors.

Keep in mind that just like a business license, the fees for a peddler’s license are annual and subject to change.

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How Do I apply for a Peddler’s License?

A lot of cities allow you to apply and/or print their online application, but most require you to apply in person. So, before you do anything else, contact your city licensing department to find out what your city requires.

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Surety Bond

Once you’ve determined how you’re going to apply, the next step before going forward with the application is to contact the city licensing office to see if a bond is required. Some states require a small bond for yourself and anyone you may have working for you.

If you’re state requires a bond, you can apply in person at a bonding company for a $5,000 surety bond (this is the minimum amount). To avoid having to go in person check and see if you can apply through the bonding company’s website.

Some states require a surety bond because they protect the obligee against losses resulting from the principal’s failure to meet the obligation.

It’s basically a promise by a surety or guarantor to pay one party a certain amount if a second party fails to meet some obligation, like fulfilling the terms of a contract.

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Personal Documentation

Once you’ve secured your surety bond, the next step in getting your license and starting compiling a number of important personal documents. It’s always smart to contact your city licensing office to see what your specific city requires, but general guidelines require:

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  • Copy of criminal record
  • Proof of bond
  • Proof of Identification

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Depending on your state, you may also be required to wear a special peddler’s identification card. This is a quick and easy way for you to prove to the authorities that you’re legally allowed to peddle your merchandise. Failure to present or prove your peddling business is a legitimate business can result in fines and your peddler’s license being revoked.

If your state requires this form of identification, take two ID-sized photos with you to the licensing office. Anyone who works with you will also need to have this ID card. There is a small ID fee.

Please note that if you plan on selling food, there are additional licenses and requirements as well as a number of food service and health practices you must abide by.

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Form an LLC or Corporation

Every business, no matter how small, should form an LLC. Matter of fact, it’s the most important thing you could ever do for your business. Why? Because forming an entity grants you:

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  • Personal asset protection
  • Additional credibility and name protection
  • Tax flexibility
  • Perpetual existence

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Who Should Start a Peddling Business?

Peddling isn’t for everyone. There are some limitations, the biggest being never having a fixed location for your business. But this could also work in your favor, allowing you to pick up and move to high traffic areas on a whim and take advantage of special events and holidays.

For this reason, peddling is great for entrepreneurs who only sell one or two items (i.e., flowers, art, food, handmade crafts, toys, etc.). It’s an inexpensive way to launch your business, with very little overhead and upkeep costs.

So, if you like being on the move and going where the action is, starting a peddling business and obtaining a peddler’s license is the right move.

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In conclusion

Our goal here at Inc Authority is to make business ownership an achievable goal for all. That’s why our LLC setup service is 100% free. Get started today and enjoy the perks and protections of entity formation no matter where the road takes you.

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Incorporating is the most powerful thing you can do to legitimize your business. And at IncAuthority.com, our LLC setup service is 100% free. Always. So, don’t wait. Form your LLC today and enjoy the protection due to you and your business under the law. Start now for free.