Every summer I find a story about someone who runs afoul of local authorities for selling something without the proper local
In this case, it was in Holland, Michigan, that the incident occurred. Nathan (13 years old) wanted to open a hot dog stand to get money to help his parents, who have health problems. He went to the city and checked on licenses and permits he might need. But he forgot to check on zoning requirements. When he set up in a parking lot near downtown, a city zoning official shut him down. Turns out there's a zoning restriction on "restaurants" near the existing downtown restaurants, to keep out competitors.
The point is, even children business owners are subject to city ordinances, including zoning. And garage sales/yard sales are also subject to all the requirements of other local businesses, if they run more than once or twice a year.
So, what do you do if you want to start a local business?
1. Check with your location (town, city, county) to find out what licenses and permits you might need.
2. Make sure your business location is correctly zoned. That is, you are allowed to run your type of business in the zoning for that location. You can't run a manufacturing business in a retail area, and you can't run most types of businesses out of your home, because it's zoned as residential.
3. Sign up with your state for sales taxes, if your product or service is subject to sales tax.
Some articles you might find helpful: