State business licenses (industry-related)
In addition to federal food industry regulations, your business must comply with state laws that govern food businesses. It’s important to know that these can vary significantly from state to state and industry to industry.
For instance, states have different licenses for the many business operations associated with food and beverage, including:
- Manufacturing
- Processing
- Handling
- Rendering
- Packaging
- Retail (including grocery stores, bakeries, cafes, bars, wineries, restaurants, breweries, food trucks, vending machines, and home food businesses).
Food-related businesses can also be regulated by more than one state agency. Breweries and wineries, for instance, need licenses from the state's liquor authority and a license to process food from the state's agriculture department.
In another example, coffee roasting businesses are subject to U.S. Environmental Protection Agency (EPA) and state environmental regulations that govern the release of harmful substances and compounds into the air. An air permit may need to be obtained from both entities. In addition, coffee roasting businesses must obtain a food processing license.
State business licenses (general)
No matter your industry, you must comply with business registration and licensing requirements that apply to all businesses. These include the following:
- General business license: Some states require businesses obtain a general business license to operate legally. The licensing authority may be the state itself (such as Washington and Alaska) or a local government agency.
- Sales tax license: If your business collects sales and use tax, you must first obtain a sales tax license or similar registration or permit from your state tax authority.
- Unemployment insurance registration: All states require employers to register with the state department of labor for unemployment insurance.
Local business licenses (industry-related)
Your county, city, or town may also impose regulations on food businesses. Typically, the local health department oversees licenses and permits for any food establishment. However, other departments may also need to approve your operations and issue permits. For example, if your business uses commercial cooking appliances, such as commercial fryers or ovens, the local fire department may inspect your business before issuing a fire permit.
Zoning
Local government zoning laws prohibit you from operating a food-related business in certain areas of carrying out certain activities. Check with your municipal zoning and planning board. The board will also regulate the scale of your operations, including the number of employees permitted on site and kitchen facilities.
Local business licenses (general)
General licenses, permits, and registrations may also be required by your local government. Examples include:
- General business license. A general business license is issued by a county or city and authorizes you to do business in that jurisdiction. (This license can also be known as a business privilege license or business tax registration.)
- Sign permit: Some cities and towns require a permit before the installation or display of signage.
- Certificate of occupancy: Certificates of occupancy specify the legal use and/or type of occupancy of a building. Changes in use, egress, or occupancy type may require a certificate of occupancy or amendment of an existing certificate.
- Home occupation permit: Sometimes needed if you operate a food-related business inside your home.
- DBA/trade name registration: If you choose to name your business as something other than its legal entity name, you must file a DBA or “doing business as” registration with your state or local jurisdiction.
CT can help
Food industry business licensing is complex and always evolving. But with the right technology and support, your business can navigate these complexities with confidence, agility, and efficiency.
Outsourcing business registration and license research, applications, management, and renewals to CT Corporation can help you take the pressure off internal resources. We are a full-service management provider specializing in the efficient processing of food industry business licenses, permits, and registrations. We can free up your time to focus on starting and growing your business while ensuring you keep up with changing compliance requirements.
For more information on CT Corporation services and how we can streamline your business licensing, please contact us.
