How to Get around Cottage Food Laws
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How to Get around Cottage Food Laws
If you have a passion for cooking and your guests can't wait to be asked over for a meal at your house, then starting a cooking business could be the way to turn your skills into a profitable business venture. You will need sufficient space for storing cooking equipment, a supply of materials for packing, a method for delivering home-cooked meals, and the appropriate licensing. Obtaining the necessary licensing is the most critical step in the process. How to Get around Cottage Food Laws
If you want to know the precise regulations for your location, you need check with your state, city, and county. You can also receive assistance from the Small Business Development Center in your area.
How to Get around Cottage Food Laws
Licenses & Permits for Commercial Activities
It is most possible that your state, in addition to the city and even the county in where you reside, requires a business license. Visit the websites of the governments of your state, county, and municipal in order to learn how to obtain the applications and the costs associated with doing so (see Resources for a list of state websites).
Business Registration
The name of the business and its legal structure, such as whether it is a sole proprietorship, partnership, limited liability company, or corporation, must be registered with the secretary of state's office in many states.
Sales Privilege License
Companies that sell their wares at retail locations are eligible to receive a sales privilege license. In addition to the price of the items, your company is required to collect the sales tax that is mandated by the state and remit that tax to the government of that state. Some towns and counties demand their own sales privilege license, while others just require an additional percentage to be collected and remitted to their office, but they don't issue their own license. The difference lies in whether or not the city or county issues their own license.
Food Handler's License
This permit is often referred to as a food safety certificate in some circles. Your understanding of how food must be handled and stored may be put to the test if you are required to do so. Not only will you be required to have a food handler's license, but everybody who helps you in the kitchen will also be required to have one of their own.
In the Event That It Is Required, a Catering License
If, unlike a personal chef, you prepare the cuisine in your own kitchen and then transport it to the customer, rather than preparing the food in the client's kitchen, you may be required to obtain a catering license.
Inspection of the Kitchen for Health and Safety
Your kitchen will need to be certified, which is a form of licensing, after it has successfully passed a health and safety examination. If you prepare food in a kitchen that is not certified, you could be subject to sanctions from the state or the county. If you want to run a food business out of your home but your kitchen doesn't meet the requirements, you might want to think about preparing the food in a certified kitchen during off hours. Take, as an illustration, an eatery that is only open for breakfast and lunch and that could be willing to rent out its kitchen to you during the late afternoon and evening hours.
How to Get around Cottage Food Laws
Zoning Regulations and Authorizations
Investigate the zoning regulations of your community to see whether or not you are permitted to run a company out of your house. Permits can be necessary if you plan to have people come to your house to pick up food. It would be essential to apply for and receive a zoning variance.
How to Get around Cottage Food Laws
The Regulations of the Homeowner's Association
If you live in a townhouse or condo, check to see what the rules and regulations are for the homeowner's association. It is possible that you will discover that running a business out of your house is not permitted.