Do You Need an LLC for Cottage Food in Florida
Do You Need an LLC for Cottage Food in Florida
FLORIDA COTTAGE LAWS: SALES OF FOOD WITHOUT A LICENSE
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If you're good at making or baking something tasty and people tell you they'd pay for it, you might want to start your own small business.
Most food products can't be sold without the right licenses and permits. But people can get around these rules with Florida's cottage laws.
Do You Need an LLC for Cottage Food in Florida
Learn the basics about food businesses that don't need permits in Florida.
WHAT DO "COTTAGE FOODS" MEAN?
Cottage foods are a small group of homemade foods that can be sold directly to consumers who know what they are buying. The Florida Department of Agriculture and Consumer Services does not have to give them licenses or check on them (FDACS). These foods are less likely to make you sick most of the time.
HOW TO START A BUSINESS IN FLORIDA THAT SELLS COTTAGE FOODS
In Florida, the first step in figuring out how to start a cottage food business is to find out what you can sell without a license. There are several lists that show which Florida food businesses do not need permits. If what you want to make fits into one of these groups, you are on the right track.
If you know about Florida's cottage laws, you can make a good business plan and set growth goals that are realistic.
Food businesses in Florida that don't need permits
In the state of Florida, you can only make and sell a small number of foods and food products. One of the most important things that determines what can and can't be sold is whether or not an item needs to be kept at a certain temperature.
Some things that are fine to sell are:
Do You Need an LLC for Cottage Food in Florida
Loaf of bread, rolls, and cookies;
Pastries, cookies, and cakes;
Sweets and other candies;
The honey was made by hand;
Jams, jellies, and other kinds of preserves;
Fruit pies and dried fruits;
Herbs, spices, and mixes that are dried;
Homemade pasta;
Cereals, trail mixes, and granola;
Nuts with or without a coating;
Vinegar and flavored vinegars; and
Popcorn and balls made of popcorn.
Many of these products are made from food that was grown at home. This gives farmers an extra way to make money and an outlet for their creativity. But Florida cottage food sellers don't have to use products that they grew themselves.
HOUSE RULES IN FLORIDA
Do You Need an LLC for Cottage Food in Florida
Most of Florida's cottage laws have to do with how and where you can sell things. The Florida Statute 500.80 says what the rules are for these laws. But keep in mind that the rules in other states or cities might be different from those in the State of Florida.
SELLING IN FLORIDA
Foods made in a home kitchen can only be sold by people who live in the state of Florida. Once the products are sold in other states, they must follow the cottage laws of those states, which may or may not allow similar sales.
SOLD THE MOST
Under Florida law, the total sales of cottage foods can't be more than $250,000 a year. Sales are taxable income.
HOW FOOD IS MADE IN A COTTAGE
When you make food to sell, you have to do it in the kitchen of your main home. You can't make it in a summer house, a motor home, a vacation home, or outside.
SALES DONE ONLINE
Do You Need an LLC for Cottage Food in Florida
People look for and buy things online all the time. People who run small food businesses in their homes can sell their food online, but they have to deliver it themselves. This also makes it hard to do business between states or countries.
PRIVATE EVENTS
Common cottage foods that can be made for special occasions include cupcakes, wedding cakes, and birthday cookies. Cottage food must be delivered directly to the customer or to a private event that the customer is hosting.
NO WHOLESALE
In Florida, the law says that you can't sell foods made in a cottage. Wholesale products have to meet some extra requirements.
LOCAL LAWS
A cottage food business has to follow all county and city laws and ordinances about how to make, process, store, and sell cottage food products. There may be differences between these and Florida's cottage laws in general.
FLORIDA COTTAGE FOOD LAW LABELING REQUIREMENTS
Cottage foods need to be packaged and labeled correctly to keep people safe. They must also say, "Made in a home kitchen that doesn't have to follow Florida's rules for food safety.""
A cottage food business can only sell foods that have already been packaged. On the label, the following things must be written in English:
Name and address of the business that sells home-cooked food;
What the food made at home is called;
The food's ingredients in the order of which ones weigh the most;
How much the item weighs or how much space it takes up;
Federal laws require labels to include information about allergens; and
The right nutrition facts, as required by federal labeling laws.
Do You Need an LLC for Cottage Food in Florida
People who run small food businesses in their homes can give people free samples to try, but the samples must be pre-packaged. A list of ingredients doesn't need to be made in a lab.
If you have a secret ingredient that you want to keep to yourself, you might be able to. Food and Drug Administration (FDA) 21CFR 101.100g(1)(2) says that the way things are labeled can be different in some cases. If the Commissioner of Food and Drugs decides that the supposed secret ingredients are safe, you might get an exemption. Before deciding to leave out the ingredient, it is safer to make sure that both you and the commissioner agree, and you should talk to the FDA about the possible exemption.
SELLING FLORIDA COTTAGE FOODS AT FARMERS' MARKETS
You can sell food you made at home at farmers' markets, flea markets, and roadside stands. This is true only if you don't have any other food items in your space that require a food permit.
Do You Need an LLC for Cottage Food in Florida
Depending on the rules in your area, you may still need a food establishment license at some farmers' markets and other direct sales places, even if you meet the requirements for cottage food. Most of the time, each town and farmers' market has its own rules.