Skip to Content

Can You Sell Homemade Lip Balm Online? Do You Need License?

Yes, you can sell your homemade lip balm even on ecommerce websites like eBay and Etsy. You just have to sign up with eBay and Etsy, open an online store on their sites and you are ready to sell. You can also set up a separate website for advertising your products.

A home business (or “home-based business” or “HBB”) is a small business that operates from the business owner’s home or his home office. In most cases, a home business employs few workers or family members to do tasks. Note that it’s not against the law to make and sell Lip balm from your home.

Recommended:  How Much Does It Cost to Start a Lip Gloss Line Business?

Keep in mind, however, that it’s your responsibility to manufacture products in an environment that will not cause them to become adulterated. FDA does not have regulations specifying good manufacturing practices (GMP) for cosmetics.

Even if you are manufacturing your products in your home or salon, these guidelines will help you keep your process and your products safe. However, you have to note that this market is highly competitive and somehow saturated.

When trying to develop a lip balm company, remember that you will have to compete with established brands; and this entails that whoever you hire to create the formulation (a cosmetic chemist, or a contract manufacturer) must have great ideas on how to differentiate your products from competitors.

Recommended:  Top 50 Private Label Lipstick & Lip Gloss Manufacturers

Do You Need a License to Sell Homemade Lip Balm?

Just like any other homemade cosmetic products, you generally don’t need a license to make and sell homemade lip balm from your home in the USA, UK, and most countries in the EU. However, may need a license to run your business.

The U.S. Food and Drug Administration (FDA) regulates cosmetics, so if you’re making your lip balm from scratch, you need to be sure your products are safe and live up to their claims. This includes making sure your labeling and packaging are honest. All color additives need to be approved. If you sell private label lip balm or existing brands produced in the U.S., those products should have already been approved by the FDA.

Recommended:  50 Catchy Business Name ideas for a Lipstick Line

You’re not required to test your products and ingredients, but you still need to make sure they’re safe. For example, if you’re planning to start an organic lip balm business, you should check the U.S. Department of Agriculture (USDA) requirements.

Note that products that fall into this category are expected to follow both FDA regulations for safety and USDA laws for the organic claim. You cannot use the term “organic” unless at least 95 percent of the ingredients you use in your lip balm are organic.

In the United States, here are licenses and permits you will need to start and sell your Homemade Lip Balm;

Licenses and Permits Needed to Sell Homemade Lip Balm

  1. General business license

Most cities and counties in the United States require new businesses to obtain some form of general business license. Since you will be selling your homemade Lip Balm from your home, this general business license may be referred to as a reseller’s or tax certificate.

Recommended:  How to Start a Lip Gloss Line With No Money in 2024

Have it in mind that this general business license allows an entrepreneur to legally undertake commercial activities within the boundaries of an existing town, city, or county. Take your time to sit with a tax collector for more information about business licenses and tax certificates.

  1. Zoning Permits

Note that one of the reasons for the requirement that businesses be registered and licensed is often the fact that their governments zone many locales. Some areas are okay to conduct business in, while other are not. To perform a commercial enterprise in an area in which such activity is forbidden can get you into various kinds of trouble.

Recommended:  13 Best Places to Buy Empty Lip Gloss Containers Cheaply

3. Federal Employer Identification Number (EIN)

Also remember that an EIN is like a social security number for a business. It is free and can be obtained online. Sole proprietorships don’t need one, but it’s recommended so you don’t have to use your social security number for business purposes (i.e. to fill out W-9 if you’re a freelancer or doing contract work). LLCs and other business structures, especially if you have employees, require an EIN.

4. Permits for your commercial sign

Normally, a well placed commercial sign may help to direct your customers or market your homemade lip balm business to the public. However, before spending any money on a sign, determine what permits and rules apply to commercial signs in your neighbourhood.

Recommended:  How to Make Money Selling Lipstick and Makeup from Home

In many communities, you may need to apply for and obtain an applicable permit before posting a commercial sign. Note that this permit may also spell out further limitations, such as the sign’s size, placement, wording, materials, and lighting on your property. Get in touch with your local zoning board or commission for rules and restrictions on signage.


A lip gloss business can be done in a few different ways. You can create your own brand or sell popular brands. Each option has different requirements. Starting your own lip gloss line is the most challenging and the most rewarding option. You can start from scratch or work with a private label lip gloss supplier.

Recommended:  How Much Does It Cost to Make a Lipstick in 2023? [Profit Margin]

FDA does not license cosmetics firms. However, state or local authorities may require licensing or have other requirements you need to know about. You will need to contact your state or local authorities directly. Again, the Small Business Administration may be able to help.