Fourteen years after a highly publicized incident in Coralville, Iowa, where police shut down a 4-year-old's lemonade stand over permit issues, a legislative movement known as the "Lemonade Stand Law" has spread to over a dozen U.S. states. This initiative, spearheaded by the Libertas Institute, aims to protect minor entrepreneurs from burdensome local regulations.
The original incident, which occurred during the RAGBRAI bicycling event, involved 4-year-old Abigail Krutsinger, whose 25-cent lemonade stand was closed because she lacked a $400 permit. Her father, Dustin Krutsinger, expressed frustration at the time, stating, > "If the line is drawn to the point where a 4-year-old… can't sell a couple glasses of lemonade for 25 cents, than I think the line has been drawn at the wrong spot." Another parent whose children's stand was shut down similarly noted, > "The kids were devastated. They just cried and didn't understand why.”
These events galvanized the Libertas Institute, a Utah-based public policy think tank founded by Connor Boyack, to advocate for legislative change. The organization successfully championed the first "Lemonade Stand Law" in Utah, its home state, prohibiting local governments from requiring permits, licenses, or sales taxes for occasional business activities undertaken by minors. This landmark legislation served as a model for other states.
Since its initial passage in Utah, the Libertas Institute has actively assisted in the adoption of similar laws in over a dozen other states across the country. These laws often extend beyond just lemonade stands to cover various minor-operated businesses, such as lawn mowing and babysitting, removing regulatory obstacles for young entrepreneurs.
In addition to legislative advocacy, the Libertas Institute launched the @kidsmarkets program, which supports and encourages youth entrepreneurship in a regulatory-free environment. According to a recent social media post by Connor Boyack, the program is projected to see over 100,000 children participate nationwide this year, fostering early business skills without government interference. The widespread adoption of these laws reflects a growing recognition of the importance of encouraging youthful enterprise and reducing unnecessary bureaucratic hurdles.