What Is A Cottage Foods Operation?

A Cottage Foods Operation is a home-based, food-oriented business that is not required to have, and is exempt from, commercial permitting, in most states.

Commercial kitchen permits may not be required, however you may need to comply with city and county licensing requirements, and you’ll need to be aware of what the state requires, most assuredly. We’ll cover what you need to know, up front, in short order … keep reading.

What You Should Know

1.  COTTAGE FOODS.  Cottage Foods are foods prepared in a home-based, unlicensed kitchen which is exempt from commercial licensing. Check your state laws for specificity.

2.  COTTAGE FOODS RESOURCE.  The best online resource for home-based kitchens is … http://cottagefoods.org.  Know your state laws … and get info about your state laws at … http://cottagefoods.org/laws/.

3.  KNOW YOUR STATE RULES/LAWS.  There are very specific rules that apply to a home-based, unlicensed kitchen, a commercially exempt kitchen. Know what you can produce and what you cannot produce. You must consult with your state’s governing body. You may be exempt from licensing, but you are still answerable to the state’s governing body, and you must make your kitchen available for inspection if and when such a request is made.

4.  HOMEOWNERS ASSOCIATION.  Be aware that your homeowners association may have specific rules about home-based businesses and it’s a good idea to consult your HOA by-laws as you begin your start-up research.

5.  LICENSING-CITY.  In most cities, counties and states, … at the CITY LEVEL, you will need what is called an ‘occupational license’ or a ‘business tax receipt’ from the appropriate city department. Good rule of thumb to follow, contact the city and the county licensing agencies before purchasing your license, as one or the other may have conflicts or caveats. When deciding to purchase one license before the other, handle the city license first.

6.  LICENSING-COUNTY.  In most cities, counties and states, … at the COUNTY LEVEL, you will need the same thing, what the county terms an ‘occupational license’ or a ‘business tax receipt’ from the appropriate county department. Here again, a good rule of thumb to follow, contact the city and the county licensing agencies before purchasing your license, as one or the other make have conflicts or caveats.

7.  LICENSING-STATE.  In most cities, counties and states, … at the STATE LEVEL, you may not need any licensing, but you will need to follow the state’s guidelines for a CFO, a Cottage Foods Operation. So, back over to CottageFoods.org … http://cottagefoods.org/laws/ … and get to know your state’s laws and guidelines.

8.  FOOD LABELING.  Foods, generally speaking, must have an ingredients list and a ‘Food Facts Label’. In most states, for CFO’s, you must have a food label that details your CFO’s name, your actual kitchen location address, your ingredients list, and your sub-ingredients list, and the allergens present in the food item. Allergens are extremely important as it relates to public food safety, as some folks have severe allergies to various foodstuffs and it is your responsibility to scrutinize your ingredients list and convey the presence of all ingredients on your food label. 

9.  LIABILITY INSURANCE.  Know this, your liability or responsibility, to public food safety is of paramount importance. Safe food handling practices are a must. Insurance is about assurance, and peace of mind. Do yourself a favor and invest in ‘Liability Insurance’, it may not be mandatory, but it is a proper business safeguard, and one that you should have in place for your protection as well as the consumer’s. You can get Liability Insurance for your small cottage foods operation business, it’s called the ‘FLIP Program’ … the Food Liability Insurance Program … http://www.fliprogram.com/.  It’s very affordable.

10.  GETTING THE WORD OUT.  At the very least, a Facebook Page is in order, next a website is a great idea, and beyond those two basics, some simple business cards would be great for in-person networking. You can print them yourself, or VistaPrint.com has a great, low-cost, standing offer, they advertise constantly on TV, you may remember seeing their ads.

Ready To Set Up Your Own Cottage Foods Operation?

Good for you! You can do this! Read on … it’s a guideline of the steps you need to take … Business Setup Checklist For A Cottage Foods Operation.

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