There's no special federal or state license to make candles. What a candle business needs is the ordinary set every small business needs, plus two federal product rules. The layers: register your business name with the state, or form an LLC; get a state tax license or seller's permit to collect sales tax; get a local business license if your city or county requires one, and a home occupation permit if you work from home and zoning asks for it; and an EIN from the IRS, free, if you hire or form a multi-member LLC. The product rules: the label on a packaged candle follows the Fair Packaging and Labeling Act, with what it is and its net quantity on the front and your name and place of business, and wicks with metal cores can't contain more than 0.06% lead. Markets and shops will ask for insurance, though no law does. In the example below, an Oʻahu candle maker works through the list. Below are the layers, the product rules, the example, and a free checklist.
The short version
- No candle-specific license: the general business layers apply.
- Business name: a registered trade name, or an LLC, with your state.
- Tax: a state tax license or seller's permit before you sell; in Hawaii, a general excise tax license, $20 once.
- Local: a business license where the city or county requires one; a home occupation permit where zoning does.
- EIN: free from the IRS; needed for employees or a multi-member LLC.
- Label: product identity and net quantity on the front panel; name and place of business.
- Wicks: a metal core with more than 0.06% lead is banned.
- Fire safety labels are voluntary, and markets often ask for product liability insurance.
- TaroStack keeps each pour's lot, its wick lot, and its cost. More below.
The layers
| Layer | Who issues it | What to check |
|---|---|---|
| Business name | Your state's business registration office | A trade name (DBA) for a sole proprietor, or an LLC filing |
| Tax license | Your state's tax department | A seller's permit or sales tax license; in Hawaii, the general excise tax license |
| EIN | IRS | Free online; needed with employees or a multi-member LLC |
| Local business license | City or county | Some require one for every business; others don't |
| Home occupation permit | City or county zoning | Rules on home businesses: customers visiting, signs, storage |
| Market and event permits | Market organizer, sometimes the city | Vendor applications and stall fees |
The IRS issues an EIN online for free and warns against sites that charge for one. Every state and city differs, so check your own; this is general information, not legal advice.
The candle rules
| Rule | Who | What it says |
|---|---|---|
| Label | FTC, under the Fair Packaging and Labeling Act, 16 CFR part 500 | Statement of identity and net quantity on the principal display panel; name and place of business of the manufacturer, packer or distributor |
| Lead wicks | CPSC, 16 CFR 1500.17(a)(13) | Candles with metal-cored wicks containing more than 0.06% lead in the metal are banned |
| Fire safety label | ASTM voluntary standard | A cautionary label: burn within sight, away from things that catch fire, children and pets |
The wick rule is 16 CFR 1500.17(a)(13), and the label rules are 16 CFR part 500. Every detail, including where the net quantity goes, is in candle regulations in the US.
An example: an Oʻahu candle maker
Lehua Glow, the made-up candle maker on Oʻahu I use in these examples, sells soy candles at a Saturday market and to shops:
| Layer | Lehua Glow | Cost |
|---|---|---|
| Business name | Trade name registered with the state | |
| Tax license | Hawaii general excise tax license | $20, once |
| EIN | Not yet: no employees | Free when needed |
| Local business license | Checked with the county | |
| Home occupation | Checked with county zoning, since candles are poured at home | |
| Label | Identity and net weight on the front, name and place of business | |
| Wicks | Cotton wicks, no metal core; the supplier's certificate on file for any zinc-core wicks | |
| Market | Vendor application; the stall is $50 a Saturday | |
| Insurance | Product liability, for the market and the shops |
Hawaii has no sales tax: the general excise tax applies instead, at 0.5% on wholesale sales and 4% on retail, plus a county surcharge on Oʻahu, according to the Department of Taxation. What a candle business earns is in candle business plan, and how a market day goes in how to sell candles at a farmers market.
Get the checklist
Download the candle business license checklist. One sheet: each layer, who issues it, what it is, whether you need it, what it cost, when it was done and when it renews, with a status that stays yellow until it's done. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
Licenses are a one-time job. The ongoing part is the product: every pour needs the right label and the right wick, and when a shop asks about a batch, you need to know which wicks went into it.
How TaroStack does it
TaroStack keeps each pour's lot, its wick lot, and its cost.
Each pour a batch. A pour of 9 oz jars is a batch with a lot, and the batch record notes which wick and wax lots were consumed, automatically.
Lot labels. Lot labels print with each batch, so the jar on a shop shelf leads back to its pour.
What it costs. Each batch carries its true cost, from the wax, wicks, fragrance and jars it used.
| The job | Notebook | In TaroStack |
|---|---|---|
| Which wicks a pour used | Not recorded | Recorded on the batch |
| A jar back to its pour | The date on the bottom, if written | The lot on its label |
| What a jar costs | Worked out once | Each batch's true cost |
Lots, batches, recipes and true cost are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.