Do I need a license to sell homemade food in California
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Do I need a license to sell homemade food in California
Can You Sell Food From Your Home in California? What Kinds of Food Can You Sell?
If you plan to sell the foods that you make in California, you will need to register your home kitchen in order to do so.
baked goods that do not have any fillings made of meat, cream, or custard (including breads, biscuits, churros, cookies, pastries, and tortillas).
dry baking ingredients.
sweets like toffee or nut brittle.
dried out food
chocolate containing ingredients that do not need to be refrigerated, such as nuts and dried fruit.
In addition, we have fruit pies and tamales, granola, cereals, and trail mixes with fruit all of which are available for purchase.
dried mole paste
Honey and sweet sorghum syrup are acceptable substitutes for the following ingredients in jams, jellies, preserves, and fruit butters that meet the requirements established in Part 150 of Title 21 of the Code of Federal Regulations.
Spreads made from nuts and nut-based mixes
Items such as waffle cones, pizzelles, popcorn, roasted coffee, dry tea, mustard, and vinegar are included in this lot.
Do I need a license to sell homemade food in California
You can acquire this list in addition to further information regarding the items that are appropriate for use in home cooking by going to the website of the California Department of Public Health.
Choosing the Right Organizational Form for Your Food-Related Home-Based Business in California
Many home businesses that are associated with the food industry are intended to be on the smaller side. In the state of California, owners of cottage food enterprises can only have one employee working full time for them. The annual profit that can be made from a home-based food business in a certain state is also capped at a certain amount. In 2022, the maximum allowable gross annual revenue for Class A firms is capped at $75,000, while the maximum allowable gross annual income for Class B activities is set at $150,000. Section 113758 of the Health and Safety Code of the State of California (2022).
Do I need a license to sell homemade food in California
If your company is quite modest, operating it as a sole proprietorship can be the only viable option from a financial standpoint. However, keep in mind that as a sole proprietor, you are personally liable for every aspect of the business, including paying taxes and assuming the risk of a lawsuit in the event that one of your customers becomes ill or is injured as a result of your food goods. This is something that you need to keep in mind because you are personally liable for every aspect of the business. You should get liability insurance if you are working for yourself as a solo proprietor so that you can protect your personal assets (see below).
Consider incorporating your company as a California corporation or forming a limited liability company if you have the financial means to do so. Doing so will protect you from being held personally liable for the actions of your business. Because of these legal arrangements, in the event that a client became ill or experienced other adverse effects as a result of your product, your food business, and not you individually, would be held accountable for the consequences of such an occurrence.
For detailed information, please go to Choose Your Business Structure.
Licenses and Permits for California Food Businesses Operating From Home
In order to operate a food business out of your house in the state of California, you are required to obtain a license from the local health department. You have the option of choosing between two different types of licenses depending on whether you desire to sell products either directly to customers or indirectly through other local companies such as shops or restaurants.
Authorization of Class A
You are eligible to apply for a Class A permit in the state of California if you have the intention of selling only directly to clients located inside the state of California. You are allowed to conduct business at farmer's markets, events, from your home, or in any other place where clients can buy directly from you if you have a Class A permit. Other settings include: For you to be granted a Class A permit, your kitchen will not be subject to a physical inspection; however, you will be required to complete a self-certification checklist.
Authorization of Class B
Do I need a license to sell homemade food in California
A Class B license is required if you want to sell to people in a roundabout way, for as by going through stores, restaurants, or other businesses who will offer your products on your behalf. Outside of your home county in California, you are not permitted to engage in indirect sales of cottage food products unless the county in which you wish to sell has formally announced that they will permit such sales. In order to obtain a Class B permit for your kitchen, it is necessary for there to be an annual physical examination.
Section 113758 of the Health and Safety Code of the State of California (2022).
crucial details.
Whether you are applying for a Class A or Class B permit, you will be asked to provide certain information, such as the following:
Do I need a license to sell homemade food in California
your complete product line's components or formulations, whichever comes first.
a copy of the labels for each individual product, as well as a list of the companies from which you source your ingredients.
describe your bundle in detail. Do I need a license to sell homemade food in California
A floor plan of your kitchen, an inventory of your appliances, utensils, and surfaces that come into contact with food, as well as a certificate attesting to your completion of a food processors course that has been certified by the California Department of Public Health are all required pieces of documentation.
Additional permits and approvals, such as a municipal business license and, in the event that your company operates under a name different from your own, a fictitious business name registration (which is needed of all businesses), must be acquired by you.
The Steps Necessary to Acquire Your Food Handler's License in the State of California
In order to establish a home-based food business in the state of California, you are required to complete and pass a food processor course within three months of acquiring your cottage food permit. This course is provided by the California Department of Public Health. Keep your food handler card or certificate as evidence that you have successfully completed the required training when you have successfully completed the course.
In addition, in order to serve food out of your home, your company must first demonstrate compliance with severe health and safety laws. These regulations include the following, among others:
It is against the rules to prepare cottage foods in your home kitchen while also attending to other responsibilities around the house such as doing the dishes, doing the laundry, or hosting guests.
No infants, very young children, or animals of any kind are allowed in the kitchen at any time while you are making meals for the cottage.
In order to prepare meals in a cottage, you need to use tools and cookware that are spotless and in good repair.
Before each use, any and all areas and instruments that come into contact with food must be washed, rinced, and sterilized to prevent the spread of bacteria and other pathogens.
It is unacceptable for there to be any rodents or insects in any of the areas that are used to prepare or store food.
Smoking is not permitted in the kitchen at any point during the preparation or processing of homemade items.
No one who is suffering from an infectious disease is permitted to participate in the preparation or packing of cottage meals.
Hands ought to be scrubbed thoroughly before beginning any food preparation or packaging.
Water that is safe to drink is required for food preparation in cottages. This includes water that was utilized in the manufacturing process as an ingredient as well as water that was used to wash hands and equipment.
For additional information on the specific rules and regulations that apply, please refer to California Health and Safety Code 114365 (2022) and 114365.2. (2022).
Insurance for Home-Based Food Businesses in California
Businesses that deal with food are susceptible to unique risks, such as the risk of employees accidentally consuming foreign objects like glass or plastic, amongst other things. These are in addition to the typical dangers faced by businesses, such as the possibility of a fire, theft, or an accident involving an employee falling while on the job. It is quite unlikely that the homeowners or renters insurance you have will provide coverage for the operations of your home-based business.
Before discussing the possibility of obtaining the additional coverage you'll need with a licensed insurance agent, you should first do a thorough evaluation of the plans you now have in place.
If you operate a food-related business and are looking for recommendations for a reliable insurance agency, you should talk to owners of other food-related businesses. Make it a point to hire a broker that has previous expertise developing insurance policies for food companies to ensure that all important risks are covered. A member of the public who contracts an illness as a result of eating one of your meals should be covered by your general commercial liability insurance, as should an employee who is injured by water that is boiling over.
If you make deliveries or do other excursions that are related to your business using a car or truck, you need to make sure that it is adequately insured.
How to Recruit Employees for Your Food-Related Home-Based Business in the State of California
As you operate your cottage food business in the state of California, you can obtain support from other family members or people living in your household. In addition, the regulation restricts your ability to hire more than one person to work full time. Section 113758 of the Health and Safety Code in the State of California
If you make the decision to hire an employee, you should educate yourself on the fundamentals of employment law. This includes hiring practices, Californian laws against discrimination, and how to manage financial considerations such as workers' compensation and state business income taxes. If you make the decision to hire an employee, you should educate yourself on the fundamentals of employment law.
Do I need a license to sell homemade food in California
For further information, please visit the Human Resources Law Center on Nolo.
The Act Regarding Businesses Selling Homemade Food
In 2018, California voters approved the Homemade Food Operations Act, which modernizes the state's outdated cottage food law and makes it possible to legally run "microenterprise home kitchen operations." The law allows individuals to run enterprises, like as restaurants, from their homes; however, there are a few restrictions, including the following:
No more than one worker is allowed to be responsible for the food's preparation, cooking, and service on the same day (excluding family members or members of the home).
There will be no oysters or anything prepared with raw milk allowed.
There cannot be more than 30 different meals in a single day.
a little over fifty thousand dollars in sales on an annual basis in total.
You are only allowed to sell directly to customers, not retailers or wholesalers in any capacity.
You are required to comply with the requirements of health and sanitation, register with the county kitchen, and pass an inspection.
Because each county makes its own decision regarding whether or not to take part in the program, you will need to check with the county government offices in your area to determine whether or not it is available.