How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas

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How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas

How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas

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How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas

How to Get Your Own Food Business Started at Home in the Lone Star State

Find out what the regulations are in Texas for the sale of food products from your house before you launch your own food business.
In the state of Texas, launching a food business from home requires careful consideration of a number of fundamental legal issues. For instance, you need to establish a business structure, be aware of how your business is governed, educate yourself on food safety, obtain insurance, and be familiar with the types of foods that the Texas Cottage Food Law permits you to prepare in your own kitchen. If you want to be able to hire people to work for you, you need to be familiar with the rules.


How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas



What sorts of food may be sold from a private residence in the state of Texas?
You will be able to make and sell the following foods if you register your home kitchen in the state of Texas beginning September 1, 2013.

baked foods such as breads, cookies, cakes, and pastries that do not require being stored in a cold environment.
confections such as chocolate, toffee, and nut brittle. nuts with and without coatings that are fragile.
nut butters made from raw nuts rather than roasted nuts
fruit butters
canned preserves such as jams and jellies fruit pies
fruits and vegetables that have been dried out, like dried beans
snacks made of popcorn and popcorn-based snacks
Mixtures of dry cereal, such as granola, cucumbers, pickles, vinegar, and pickling spices
Mustard, roasted coffee or tea, dried herbs or herb blends, and dried herbs alone or mixed together. How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas
You can obtain this list and more information about the foods that are permitted by reading Section 437.001 of the Texas Health and Safety Code (2022).

Making a Decision Regarding the Organization of Your Business
People who manage food companies out of their homes typically keep their operations on the modest side. In the state of Texas, the annual revenue of a home-based food business is limited to a maximum of \$50,000. (437.001 of the Texas Health and Safety Code) [citation needed] (2022.)

It's possible that you're the only person who can profit from running your company as a sole proprietorship if it's a really tiny operation to begin with. Keep in mind, however, that if you run your business as a single proprietor, you are personally accountable for every aspect of the company. This includes everything from paying taxes to running the risk of being sued by a customer whose illness or injury was caused by your product. If you are the sole proprietor of your company, it is imperative that you purchase liability insurance to safeguard your financial interests (see below).

How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas


If you have the financial means to do so, selecting a legal structure for your firm that shields you from personal liability, such as a Texas corporation or limited liability company, is something you should strongly consider doing. Because of the way these companies are structured, if your food were to make someone sick or harm them in any other way, it would be your company, and not you personally, that would be responsible for paying for the damages.

For further information on how to choose a structure for your firm, see the question "LLC or Corporation?"

Permits and regulations for a home-based food company operating in the state of Texas
In the state of Texas, a permit from the department of public health is not required in order to launch a food company out of your house. In point of fact, the health department won't become involved with your cottage food business until one of your customers makes a formal complaint. This information can be found in the Texas Health and Safety Code at Section 437.0192, Year 2022.
How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas
If you want to run a cottage food business in your state, you are required to comply with the regulations outlined in the state's cottage food law. According to the law, you are only permitted to sell food if it comes from one of the following locations:

straight from your home by distributing to customers at a farmer's market or farm stand, or at a municipal, county, or charity fair. this can be done either in person or online.
Craft fairs and flea markets that are organized by private groups do not allow vendors to sell their wares. You are not allowed to sell in bulk quantities, either via the internet or through the mail.


How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas


To work with food in Texas, you are need to get a license.
If you live in Texas and wish to run a food company out of your home, you are required to complete a class on food safety and obtain a food handler's card from the state. This information can be found in the Texas Health and Safety Code at Section 437.0195, Year 2022.

You are required to have a food handler permit in addition to making sure that the food you sell is packaged and labeled in a way that prevents it from being contaminated. This regulation does not apply to particularly large products, though, such as wedding cakes. Your labels must include:

the common or usual name of the product, a list of any major food allergens it contains, and an assertion that the food is made in a kitchen at home and has not been inspected by the Department of State Health Services or a local health department. the name and location of your home-cooked food business. the common or usual name of the product. a list of any major food allergens it contains. a statement that the food is made in a home kitchen.
Labeling regulations can be found in further detail at this location: Texas Administrative Code 229.661. (2022).

How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas


Insurance coverage for a food-related home-based business in the state of Texas
Food businesses are subject to their own unique dangers, such as customers being ill after eating their products or discovering foreign objects, such as glass or plastic, in their products. 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. Do not make the assumption that your renters insurance or homeowners insurance will cover your home-based company. It's quite unlikely to happen. You need to conduct a thorough review of your existing policies and then have a discussion with a certified insurance agent about obtaining the additional coverage you'll require.

If you own a food business and are looking for recommendations for a reliable insurance agency, talk to other people who run food businesses. Find an insurance agent who has experience writing policies for food businesses in the past, and make certain that all of the major risks are covered by the policy. Everything should be covered under general business liability insurance, whether it be a consumer who gets sick after eating your meal or a worker who gets burned by boiling water.

How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas


If you use your car or truck for commercial purposes, such as making deliveries or going on other types of travels, you need to make sure it is insured.

Employees of a home-based food business in Texas are subject to various licensing requirements, privileges, and taxes.
In the state of Texas, other members of your household are permitted to assist you with your cottage food enterprise. You also have the option of employing other people to work for you. A food handler's card is something that your staff have to receive if you don't have direct supervision over them. This information can be found in the Texas Health and Safety Code at Section 437.0195, Year 2022.

If you make the decision to hire someone, you should educate yourself on fundamental employment law issues such as hiring rules, how to avoid discrimination in Texas, and how to handle money issues such as Texas state income taxes and workers' compensation. This is because these issues can arise if you hire someone. How to Sell Food from Home legally in Texas: Do I need a license to sell homemade food in Texas