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In most states, they will not require you to have a business license. If you're starting from home, that's going to be considered a cottage food business. Every state is different and the regulations vary greatly. This is one of the most frequent questions that I get from my subscribers and clients that I do my consulting with. How could you make food in a home and give it to people and sell it and not have to have a business license?

This is where you will need to do a little bit of research and dig into the magical Google button. You need to go over to Google and type in your state and more specifically, where you are. And then from there, type in Cottage Food Law. And there will be some resources that will pop up for your state specifically. Some states, if you work from home, you may be on a well.

In essence, you are actually operating a business from home. It is a food-based business, but it is still a business. It is a food-based business, but it is still a business. If you are operating a food business from your home, you may have to pay for a permit to inspect your septic tank and get a food handler's license. If you're producing a food product where someone could potentially get sick and sue you, you want to make sure that you're covered and separate yourself from your business entity and from your personal possessions and assets.

You need to find out specifically for your county, city, and state if they require that. On average, a food business policy can range greatly from $300 to even up to $1000. A DBA is going to allow you to set up a business under a name that does business as, let's say, Sarah's Chocolates. Some states require a DBA and others don't. When you start a food business from home, it could be a couple of hundred dollars to incorporate yourself and your food business.

When I got incorporated, I think it was about $300. But every state is different and if you have a lawyer do it for you, it might go that high. Now, the next one up is going to be if you are in a commercial facility. This changes the ball game dramatically, to be honest with you. Commercial kitchens are great because they've already established all of those licenses and other things.

The only thing that I would still recommend that you do, even if it's not required by your state, is to incorporate yourself as a business. And even if you did have that much money, if you've never experienced a food business, or you're not familiar with how to grow a food business compared to others, that may be a huge waste of money. Many states require you to be an organization or be incorporated, and you could do that just through a basic LLC. But making sure that you also have food business insurance is something that a lot of commercial kitchens require. And I like to keep my videos short and sweet and kind of make sure I compact all of this information together really quickly and easily.