Can you have a home based food business in California?
In recent years, the legislation was modified to the point where you can have your own home based food business in California. Yes, you are able to legally create your own business and then prepare food at home, which you then sell to customers. It’s a great opportunity to make money, and the return on investment can be staggering.
Choosing the business structure
Needless to say, a home based food business in California is expected to be small, not a large one. With that in mind, you are expected to make up to $75k for the class A operations, and $150k for the class B operations. For small businesses it’s a good idea to have a sole proprietorship, as it tends to be cheaper to run things in general. Choosing an LLC or corporation might also come in handy, if you want to avoid personal liability.
The class A permit is suitable if you sell only directly to Californian customers. The Class B permit on the other hand, allows you to sell indirectly to the customers, via venues, restaurants, apps and so on. If you want to have this permit, you do need to pass an annual inspection.
Regardless of the permit you want, you need to provide info regarding recipes and ingredients, ingredient sources, label copies, packaging description, kitchen floor plan and a certificate you have a food processor course completed.
Can you have a home based food business in California
Acquire the Food Handler license
If you want to have a home based food business in California, then you do need to complete the Public Health Food Processor course. You also need to comply with health and safety rules. You can check the California Health and Safety Code.
Hiring employees
You can use your family to obtain help for food preparation. That being said, aside from that you can have a single full time employee. Learn the employment laws and see if you have any specific guidelines.
Insurance
The home based food business in California does come with its fair share of challenges. Like any business, it’s a good idea to have business insurance, and things like general commercial liability insurance should be more than ok.
Now that you know the basics, you can go ahead and prepare your home based food business in California for prime time. Yes, there are specific guidelines to deal with when you have a home based food business in California, but that’s expected. Follow these guidelines and you should be more than ok!
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