Regulations for home-based food businesses in the United States vary from state to state. However, people running food-related businesses usually need to acquire a license and meet food-preparation and labeling requirements. Your state also may require that food prepared for sale be kept separate from the family kitchen.
Cooperative Extension Services
Cooperative Extension Services are among the best sources for finding information on regulations for home food businesses in each state. For example, a publication titled "Starting a Home-Based Food Business in Iowa" by the Iowa State University Extension outlines the types of operations that need to be licensed in the state. In Iowa, food-service businesses need to be licensed, which includes operations that prepare, package and serve food. Home-based catering businesses are considered to be food-service establishments.
Food Preparation Areas
Some states require home-based food businesses to have a preparation area that's separate from the family kitchen and inaccessible to pets. Home food businesses are usually subjected to state inspections to ensure such standards are met. Among other things, inspectors also examine counters that are used to prepare food for sale. Counters typically need to be made of nonporous materials that are easy to clean to prevent food contamination. Nonporous materials have solid surfaces that resist stains and penetration of liquids.
Product Labeling
Home food businesses that package products for sale have to meet labeling requirements to accurately provide customers with information about each product's ingredients and nutritional information. Accurate labeling is especially important for customers who have food allergies. For example, food labels on items sold in Iowa must indicate whether common allergens are included in a product, such as eggs, milk, nuts and seafood. The ingredients in a product also must be listed in order of predominance based on weight.
Meat and Poultry
Small home businesses generally are prohibited from processing meat and poultry products for sale. Meat and poultry businesses are required to process the products they sell at a commercial facility that has been inspected and approved by a federal or state government agency. On the federal level, such inspections are handled by the U.S.Department of Agriculture. State agriculture departments also handle meat and poultry inspections. For instance, the Department of Agriculture and Land Stewardship handles such inspections in Iowa.
Kitchen Incubators
People who can't meet regulations to run a food business at home may still be able to run their operation from a kitchen incubator. The incubators are certified, commercial kitchens where people who run small food businesses can cook and package the items they sell. You will have to pay to use a kitchen incubator, and you may have to work around other people's schedules who also are using the kitchen for their businesses. The Culinary Incubator website includes a list of kitchen incubators in each state.
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