Do You Need a License to Sell at Craft Fairs?
The short answer: yes, almost always. The specific licenses and permits you need depend on your state, what you sell, and where you sell it — but going in unprepared can mean fines, getting turned away at the gate, or worse.
This guide breaks down everything you need to know about selling legally at craft fairs in 2026, so you can focus on what matters: making sales and growing your business.
The Essential Documents Every Vendor Needs
1. Sales Tax Permit (Seller's Permit)
This is the most common requirement for craft fair vendors. Almost every state with a sales tax requires you to collect it on your sales — and you need a permit to do so legally.
Key facts:
- 45 states (plus DC) charge sales tax. Only Alaska, Delaware, Montana, New Hampshire, and Oregon don't.
- Most states issue these permits for free through the Department of Revenue or Taxation.
- You'll need to file sales tax returns (monthly, quarterly, or annually depending on volume).
- Some states require a separate temporary or event permit for out-of-state vendors.
How to get one: Visit your state's Department of Revenue website. Search for "seller's permit" or "sales tax permit." The application is usually online and takes 5–15 minutes.
Pro tip: Many craft fair organizers will ask for your sales tax permit number on the application. Having one ready makes you look professional and speeds up the process.
2. Business License
A general business license (sometimes called a business tax certificate) is required by many cities and counties. Even if your state doesn't require one, your local municipality might.
What to check:
- Your home city/county requirements
- The city/county where the craft fair takes place (some require a temporary business license for vendors from outside the area)
- Whether your state requires a general business license at the state level
Cost: Usually $25–$100 per year, depending on your location.
3. EIN (Employer Identification Number)
While not technically required for sole proprietors (you can use your SSN), an EIN is strongly recommended because:
- It protects your Social Security number
- Many wholesale suppliers require one
- Some craft fairs ask for it on applications
- It's free from the IRS and takes 5 minutes to get online
Get one at: irs.gov/ein
Special Permits by Product Type
Food and Beverages
Selling food at craft fairs is one of the most regulated categories. Requirements vary dramatically by state, but here's what you'll typically need:
- Cottage food license: Most states have cottage food laws that allow home-based food businesses with certain restrictions (typically baked goods, jams, candies — non-perishable items). Annual sales caps range from $25,000 to unlimited depending on the state.
- Food handler's permit: A basic food safety certification, usually obtained through a short online course ($10–$15).
- Health department permit: Required if you're selling perishable foods, doing on-site preparation, or operating beyond cottage food limits.
- Commercial kitchen license: If you exceed cottage food thresholds, you'll likely need to prepare food in a licensed commercial kitchen.
States with the most permissive cottage food laws: Wyoming, Utah, North Dakota — these allow direct sales of most non-perishable foods with minimal licensing.
States with stricter requirements: California, New Jersey, Illinois — more restrictions on what can be sold and where.
Candles and Cosmetics
If you sell candles, soaps, lotions, bath bombs, or similar products:
- No special federal license is required for candles — though tools like WickSuite can help you manage the business side
- Soaps and cosmetics fall under FDA regulations (if you're formulating recipes, Soaply's calculator helps with lye and oil ratios) — you don't need a license, but you must follow labeling requirements
- Products that claim therapeutic benefits (e.g., "healing" or "anti-inflammatory") may be classified as drugs and require additional compliance
- Proper labeling is required: ingredients, weight, business name and address
Jewelry
- Generally no special permits beyond your standard business license and sales tax permit
- If using precious metals or gemstones, some states require a secondhand dealer license
- Nickel-free compliance is important to note for EU sales, but not required domestically
Children's Products
Products intended for children under 12 are subject to stricter rules:
- CPSIA compliance is required — this includes lead and phthalate testing
- Tracking labels must be on the product
- Products must be registered with the CPSC (Consumer Product Safety Commission)
- This applies to toys, clothing, accessories, and anything marketed to children
State-by-State Considerations
Requirements vary significantly. Here are some patterns:
States That Require Event-Specific Permits
Some states require a temporary or transient vendor permit in addition to your regular sales tax permit. These are common in:
- Texas — Temporary sales tax permit for events
- California — Seller's permit required; may need a temporary one for events in different jurisdictions
- New York — Certificate of Authority required before collecting sales tax
- Florida — Temporary sales tax permit available for short-term sellers
States With No Sales Tax
If you're vending in Alaska, Delaware, Montana, New Hampshire, or Oregon, you don't need a sales tax permit for that state. However, you still need one in your home state and must collect tax there on all sales (including out-of-state events, in some states).
Multi-State Selling
If you do craft fairs in multiple states, you may need:
- A sales tax permit in each state where you sell
- To track and remit sales tax to each state separately
- To register for any temporary vendor permits required
This is where a tool like TheCraftMap helps — when you're planning which fairs to attend across states, knowing the permit requirements upfront saves headaches later.
Insurance: Do You Need It?
Many larger craft fairs and juried shows require proof of liability insurance as part of the application. Even when it's not required, it's smart to have.
General Liability Insurance
- Covers bodily injury, property damage, and product liability claims
- Cost: $200–$500 per year for most craft vendors
- Popular providers: ACT Insurance (craft-specific), NEXT Insurance, Thimble (per-event coverage)
Product Liability Insurance
- Especially important for food vendors, candle makers, cosmetics sellers, and children's product vendors
- Often included in general liability policies
- Required by some retail stores if you do wholesale
Per-Event Insurance
- Services like Thimble offer coverage for a single day ($15–$50)
- Good for vendors who only do a few events per year
- Usually satisfies the fair organizer's insurance requirements
For a deeper dive, check out our Craft Fair Insurance Guide.
Setting Up Your Business Structure
You don't need an LLC to sell at craft fairs, but it's worth considering:
| Structure | Pros | Cons |
|---|---|---|
| Sole Proprietor | No paperwork, no cost | Personal liability, less professional |
| LLC | Liability protection, tax flexibility | Filing fees ($50–$500), annual reports |
| S-Corp | Tax savings at higher income | Complex, expensive to maintain |
Our recommendation: Start as a sole proprietor, get your sales tax permit and business license, and form an LLC once you're consistently earning over $10,000/year from craft fairs. The liability protection becomes worth the cost.
Your Pre-Fair Legal Checklist
Before applying to your next craft fair, make sure you have:
- Sales tax permit for your home state
- Business license for your city/county
- EIN from the IRS (free)
- Sales tax permits for any other states where you sell
- Cottage food license (if selling food)
- Food handler's permit (if selling food)
- General liability insurance (required by many fairs)
- Product labels that comply with regulations
- CPSIA compliance (if selling children's products)
- Record-keeping system for sales tax reporting
Common Mistakes Vendors Make
1. Assuming You Don't Need Anything
"I'm just selling at one small fair" doesn't exempt you. Tax authorities can and do show up at craft fairs to check vendor permits.
2. Not Collecting Sales Tax
Even if you're a hobbyist, once you're making regular sales, you're running a business in the eyes of the law. Not collecting sales tax can result in back taxes plus penalties.
3. Ignoring Out-of-State Requirements
If you cross state lines to sell, you likely need a permit in that state too. Ignorance isn't a defense.
4. Using a Personal Account for Business
Open a separate bank account for your craft business. It makes tax time infinitely easier and looks more professional.
5. Not Keeping Records
Track every sale, every expense, every fair. You'll need this for sales tax returns and income tax filing. Our guide on tracking craft fair ROI can help.
How TheCraftMap Helps
When you're browsing craft fairs on TheCraftMap, you can see which states and cities events are in — helping you plan which permits you'll need. Use the state pages to explore fairs by location, and our deadline tracking to make sure you apply on time with all your documents ready.
Finding the right craft fairs is the first step. Start exploring fairs near you →
Frequently Asked Questions
Do I need a license to sell handmade crafts online?
Yes — you'll typically need a business license and sales tax obligations for online sales too. Platforms like Etsy may collect sales tax on your behalf in some states, but you're still responsible for income tax reporting.
Can I sell at a craft fair without a business license?
Technically some small events don't check, but you're taking a legal risk. Many organizers require proof of licensing on the application, and tax authorities do perform spot checks at events.
How much does it cost to get all the permits?
For most vendors, the total cost is $50–$200 to get started: a free EIN, a free or low-cost sales tax permit, and a business license ($25–$100). Insurance adds $200–$500/year if needed.
Do I need a permit for each craft fair I attend?
No — your sales tax permit and business license cover you for events in your jurisdiction. You may need temporary permits for out-of-state events or events in different cities with their own licensing requirements.
What happens if I get caught without a permit?
Consequences range from a warning to fines ($100–$1,000+), being asked to leave the event, or back taxes with penalties. It's not worth the risk.
Last updated: February 2026. Laws change — always verify requirements with your state and local government before vending.