Selling food without the right permits puts your business — and your customers — at risk. Licensing requirements vary significantly by state, county, and the type of food you sell, but every food business needs some combination of permits before taking a single dollar. Here's what you need to know.
What Permits Does a Food Business Need?
The permits you need depend on your business model, location, and the food you produce. Most food businesses will need some combination of the following:
- Business license — required in virtually every city and county
- Food handler's certificate — a basic food safety certification for anyone who prepares or serves food
- Food manager certification — required for operations above a certain size or for catering
- Cottage food permit — allows home-based food production under specific revenue caps and product restrictions
- Commercial kitchen license — required if you rent a licensed commercial kitchen
- Seller's permit — required to collect sales tax in most states
Understanding Cottage Food Laws
Cottage food laws allow home bakers and food producers to sell certain non-hazardous foods made in a home kitchen without a commercial kitchen license. Every state has different rules. Some states cap annual revenue at $25,000-$75,000. Others restrict what you can sell (typically baked goods, jams, and candies — not meat or dairy). Some only allow direct sales, prohibiting online or wholesale channels.
Look up your state's specific cottage food law before assuming you can sell from home. Your state department of agriculture or health department website is the authoritative source.
When You Need a Commercial Kitchen
If your state's cottage food law doesn't cover your product, your revenue has exceeded the cap, or you want to sell wholesale, you'll need to produce in a licensed commercial kitchen. Options include renting time in a shared commissary kitchen, partnering with a restaurant that rents space during off-hours, or eventually building your own permitted space.
Commercial kitchen rentals typically run $15-$35 per hour. Factor this into your pricing from the start. See our food business pricing guide for how to include kitchen overhead in your costs.
Permits for Catering and Events
Catering businesses often need additional permits beyond a standard food license. Many jurisdictions require a separate catering permit, a mobile food facility permit if you're transporting food, and a temporary food event permit for each event you staff. Check requirements both in your home jurisdiction and in any county where you plan to cater events.
How to Get Licensed: Step by Step
- Register your business entity (LLC, sole proprietorship, etc.) with your state
- Obtain a federal EIN from the IRS (free, takes minutes online)
- Apply for a local business license through your city or county clerk
- Complete your food handler or manager certification (online courses available)
- Apply for the appropriate food permit through your health department
- Schedule any required kitchen inspections
- Register for a seller's permit if your state requires sales tax collection
Once your permits are in order, you're ready to start selling. Use Threecus to manage your client orders and invoices professionally from day one.
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