Pennsylvania § 306 - Businesses operated by minors.

§ 306. Businesses operated by minors.

(a) Restrictions on business licenses and permits.--Notwithstanding any other provision of law:

(1) a municipality or an agency of a municipality may not require a business license for a business that is:

(i) operated on an occasional basis by a minor; and

(ii) located a sufficient distance, as determined by the municipality, from a commercial entity required to obtain a business license from the municipality or an agency of the municipality to prevent the minor's business from becoming a direct economic competitor of the commercial entity.

(2) A municipality may not prohibit a business operated by a minor from operating in a primarily residential zone or unzoned area in the municipality.

(b) Construction.--Nothing in this section may be construed to prohibit a municipality from enacting and enforcing local laws relating to the manner in which a business may be operated by a minor, with the exception of a requirement that the minor obtain a permit or business license prior to operating the business.

(c) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

"Business."

(1) An enterprise that is:

(i) Exclusively owned by one or more minors receiving not more than $5,000 in net proceeds per year from the enterprise unless the enterprise is created for a charitable purpose.

(ii) Carried on for the purpose of gain or economic profit.

(2) The term does not include:

(i) An act of an employee rendering services to an employer.

(ii) An enterprise organized as a form of for-profit corporation, limited liability partnership or company under the provisions of 15 Pa.C.S. (relating to corporations and unincorporated associations).

"Business license." A license or permit required by a municipality to temporarily or permanently offer sale of goods or provision of services or otherwise operate an enterprise in the municipality. This term does not include a building permit.

"Minor." A person under 18 years of age.

"Municipality." A county, city, borough, incorporated town, township or home rule municipality.

"Occasional basis." A business that does not operate more than 84 days in a calendar year.

(June 30, 2021, P.L.184, No.34, eff. 60 days)

2021 Amendment. Act 34 added section 306.