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Food Business License : Mobile Food Permit: Food Business Licenses - YouTube
Channel: Marketing Food Online
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you are looking to start a food business
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or maybe you're on the verge of getting
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one up and running but you don't know
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what kind of permit license or insurance
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that you really need I'm going to show
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you exactly what you would need to do
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based on where you want to start your
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food business and we are getting started
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right
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[Music]
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[Music]
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alright so I'm gonna explain to you
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exactly what you were going to need as
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far as the types of permits and licenses
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and even business insurance to get your
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food business up and running this is one
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of the most frequent questions that I
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get not only from my subscribers but
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also my clients that I do my consulting
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with and by the way really quick if you
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are not subscribed to our channel click
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that magical red button down there hit
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subscribe and the notification bell so
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you can see all of the new videos that
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come up every single week so let me jump
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right into it so I want to explain to
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you licenses and permits so this is
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something that gets kind of confusing
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but I'm going to kind of break it down
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for you give you some great tips on what
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you might need and what you might not
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need now the reason why I say you might
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need this or may not is because every
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state is different and the regulations
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that operate in each state are in a
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really quick easy way to say they vary
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greatly now this is going to be
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dependent highly upon where you're going
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to operate the business if you're going
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to be at home or in a commercial kitchen
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the types of licenses and insurances and
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all of the regulations that regulate
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those businesses are going to vary
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dramatically now I'll give you a basic
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rundown of what you can expect starting
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in your cottage food business so if
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you're starting from home that's going
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to be considered a cottage food business
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now what types of permits that you need
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and what type of licenses and do I have
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to have food business insurance number
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one in most states they will not require
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you to have a business license now
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that's actually something that's very
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odd and it may sound like what do you
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mean how could you make food from a home
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and give it to people and sell it and
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I'd have to have a business license this
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is where you will need to do a little
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bit of research and dig into the magical
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Google button you need to go over to
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Google and you need to type in your
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state and more specifically where you
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are and then from there type in cottage
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food law and if it happens to be as an
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example let's say Los Angeles California
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type in Los Angeles California cottage
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food law and there will be some
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resources that will pop up before your
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state specifically and you can click on
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those links and most of them are state
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websites
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that are going to show you exactly what
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would be needed in order for you to get
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started now what can you expect if you
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do start from home some of the permits
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are as follows
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they're going to require to have a
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business license in essence you are
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actually operating a business from home
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it is a food based business but it still
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is a business now my recommendation in
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some states that do not require it by
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law I would highly recommend that you
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incorporate yourself as a business
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though reason being is that you want to
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protect your assets if you have a home
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and you were producing a baked good and
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you take it to a farmers market and
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somebody gets sick and they sue you you
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could lose your house and your car and
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your savings and everything you own that
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potentially could happen now if you
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create a business and you incorporate
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yourself and you get food business
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insurance to cover the production of the
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food that you make you are going to set
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yourself up for success because I don't
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wish this upon anybody but if it happens
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and somebody gets sick and they have the
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potential to sue you well that's going
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to cause a big big problem for you okay
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so get yourself incorporated and get
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yourself some insurance to separate you
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from your business now also working from
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home in some states you may be on a well
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may be the water that comes into your
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home actually comes from a well on your
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property that actually has to be
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examined by the county now again the
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county and cities they operate under
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different ordinances that they have
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established based upon the rules they
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set up that has nothing to do with the
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state but it has to do with the
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municipalities and the local laws that
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are regulating home-based businesses so
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there is a difference between that make
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sure you understand that and you if you
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Robert you know from a home that has
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well water as opposed to city water the
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well water will have to be checked a
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checked and analyzed now that actually
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cost something normally because that's
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not a free service and you'll have to
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pay to have that analyzed if you are on
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a well so keep that in mind if you are
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on a septic tank and you're not on well
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sitting water as far as using a septic
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tank which are two different things you
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then also need to have that looked at to
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make sure that it's functioning properly
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because you will be operating a food
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business from your home so your water
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usage goes up that is another permit
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that you may potentially have to pay for
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to have someone inspect your septic tank
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okay
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now every state does not require this
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but some states do and it's called a
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food handlers license
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food handlers course and 99% of the time
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in nowadays you can actually take that
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course online now food handlers license
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is basically a basic educational program
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that will explain to you how to handle
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food in a safe and sanitized way making
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sure that you understand how it works
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and how to clean up after yourself some
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states require that and then some states
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do not again this is where the magical
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Google button comes into play and you
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need to find out specifically for your
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county and city and state if they
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require that okay now next up is as I
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mentioned briefly a little while ago is
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business insurance now again if you're
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producing a food product where someone
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can potentially get sick and sue you you
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want to make sure that you're covered
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and separating yourself from your
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business entity from your personal
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possessions and assets how do you do
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that
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is this insurance this is insurance this
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means that you can actually get a policy
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to protect the food production that is
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going on on your home in your property
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that you're going to sell it farmers
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markets or wherever it may be no Danny
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and how much does that cost well on an
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average a food business policy can range
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greatly from 300 to even up to a
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thousand dollars but normally the middle
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price the median is about five hundred
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to six hundred dollars a year you're
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probably thinking oh my god that's a lot
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of money well it's really not when you
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break it up over 12 months normally the
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the payment is a monthly payment not a
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upfront payment and it can run about
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forty to fifty dollars a month give or
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take okay and that's really not a lot
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you could go to a farmers market on a
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weekend and sell a few hundred dollars
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and you've already covered your entire
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you know months worth of insurance right
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off of the mat so next up is doing
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business as or a DBA now a DBA is going
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to allow you to set up a business
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under a name that doing business as
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let's say Sara's chocolates something to
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that effect you can do that so you can
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establish your business some states
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require a DBA
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and other states don't so again this is
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going to be something that you need to
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Google just to find out for sure if it
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is something that's required now many
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many states don't require it if you're
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going to incorporate as a business you
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can create a business name for yourself
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and not necessarily have to create kind
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of a fictitious name or DBA
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okay the next thing up is a resale
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license now if you are going to a store
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and you're gonna buy flour and sugar and
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a whole bunch of baked good stuff and
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you create a baked good item you want to
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make sure that you get a resale license
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because that's going to allow you to buy
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ingredients in bulk and wholesale
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pricing etc etc and that is something
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that a lot of people don't think about
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getting now normally to my understanding
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the resale license may cost very very
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little if any probably about 40 to 50
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bucks
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most of the licenses and the things that
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I'm explaining to you are very
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inexpensive except for when you file
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papers of incorporation now when you
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want to incorporate yourself in your
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food business as I really really
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recommend that could be a couple hundred
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dollars to maybe three or four or five
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hundred bucks okay I don't know I've
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ever seen it go too high as far as 500
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or 400 but every state is different and
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you have a lawyer do it for you and
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there's some other companies that come
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into play it might run that high when I
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got incorporated I think it was about
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300 bucks wasn't very expensive no the
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last thing you want to also have and
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potentially need to have based on your
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state requirements is going to be a
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sales tax certificate certification it's
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a certificate that allows you on behalf
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of the state if you're selling products
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within the state you have to collect
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sales tax and then give it to the state
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that's normally done where you can file
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it either quarterly which means every
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three months or you can just do it one
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time a year and it depends on the state
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and how they choose to have you clad if
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it's classified okay
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so you want to check with your state and
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say look is this something that I'm not
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going to be collecting a lot of sales
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tax because I'm not making a lot of
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sales just yet can I do it annually
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instead of every quarter we actually
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started when we just started we were
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the quarterly schedule so every three
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months we did it but now we're at the
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point where we're selling so much that
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we just do it once a year that's one big
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lump sum so keep in mind again what I
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just told you are some some permits and
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licenses and such that may be required
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by your state you just got to do a
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little bit of homework and double-check
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on that but those variety of things are
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going to be the things that come into
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play when you start a food business from
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home now
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the next one up is going to be if you
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are in a commercial facility now this
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changes the ballgame dramatically to be
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honest with you there's a lot of other
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types of licenses and permits and even
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inspections when you begin to get into a
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commercial facility now to save yourself
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the headache from having to go through
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all of that you can actually just rent a
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commercial kitchen that you don't own
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but you're actually just using the space
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and the equipment to create your food
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product and then get it out there to the
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public
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I personally when you're starting off
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don't recommend you diving into renting
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a huge building or warehouse and start
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putting up freezers and coolers and
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tables unless you've got about two or
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three hundred grand in the bank and you
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have nothing to do with it you can go
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ahead and do that and open one up and
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even if you did have that much money if
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you've never experienced a food business
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or you're not familiar with how to grow
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a food business compared to others that
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may be a huge waste of money so start
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small always think big but take really
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small steps and figure out if it's
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really something that you want to do
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commercial kitchens are great because
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they've already established all of those
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licenses and other things the only thing
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that I would still recommend that you do
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even if it's not required by your state
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is still incorporate yourself as a
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business don't be doing this just as
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something on the side that you're not
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getting yourself covered with insurance
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or making yourself completely legal as a
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business incorporate yourself get
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yourself the food business insurance
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make sure you cover yourself and then
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move forward with your plans to create
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your food product okay always want to
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protect yourself from the personal
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aspect you don't want to lose your house
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and there's everything you've worked
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hard for all your entire life just
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because you didn't file papers on a
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corporation or you didn't get food
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business insurance because you thought
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you couldn't afford it so you rented a
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commercial kitchen and then you got in
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trouble so
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make sure you do that and in some states
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that I've actually worked with I've
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actually called and spoke with a handful
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of commercial kitchens to get a feel for
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how they worked in other states many of
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them actually require you to be a
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incorporation or be incorporated and you
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could do that just through a basic LLC
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you don't have to be a c-- corporate or
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but that is your your choice and your
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preference but making sure that you also
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have food business insurance is
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something that a lot of commercial
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kitchens require or they'll request to
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see documentation proving that you're
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insured just to cover yourself so would
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that be instead I like to keep my videos
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short and sweet and kind of make sure I
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compact all of this information together
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really quick and easy so if you enjoyed
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this video and it was helpful as always
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let me know down below please do give me
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a big thumbs up if you have questions
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about any of the permits or things that
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I discussed as always ask me I'll get to
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it as soon as possible and I like to see
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you on the next video take care
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