Many enterprising individuals happen to also be great cooks, bakers, or creators of sweet treats. Sometimes those passions will align and these individuals decide to take the steps necessary to make their passion for creating delicious goods into a business. All great businesses have to start somewhere, and often food businesses start out of the entrepreneur’s home. If you find yourself in that situation, you must be cognizant that there are laws that govern the creation and distribution of food made from your home, known as the Cottage Food Laws. These laws will allow you to make and sell food from your home without obtaining a Michigan food license. This post will explain how to comply with the Cottage Food Laws in Michigan.
The Packaging
●
Name and physical address of the Cottage Food operation
(You must use the physical address of your home kitchen; Post Office Box
addresses are not adequate).
●
Name of the Cottage Food product (All capital letters or
upper/lower case are both acceptable).
●
The ingredients of the Cottage Food product, in descending
order of predominance by weight. If you use a prepared item in your recipe, you
must list the sub-ingredients as well.
o
For example: soy sauce is not acceptable, soy sauce
(wheat, soybeans, salt) would be acceptable, please see the label below for
further examples.
●
The net weight or net volume of the Cottage Food product
(must also include the metric equivalent).
●
Allergen labeling as specified in federal labeling
requirements.
o
Allergen labeling requires you to identify if any of your
ingredients are made from one of the following food groups: milk, eggs, wheat,
peanuts, soybeans, fish (including shellfish, crab, lobster, or shrimp), and
tree nuts (such as almonds, pecans, or walnuts).
●
The following statement: "Made in a home kitchen that
has not been inspected by the Michigan Department of Agriculture & Rural
Development" in at least the equivalent of 11-point font (about 1/8"
tall) and in a color that provides a clear contrast to the background (All
capital letters or upper/lower case are both acceptable).
Chuck’s Moon Cookies LLC
Chocolate Chip Cookie
Charles Mahone
123 Foodstuff Lane
Confection City, MI 82682
Ingredients: Enriched flour (Wheat flour, niacin, reduced
iron, thiamine, mononitrate, riboflavin and folic acid), butter (milk, salt),
chocolate chips (sugar, cocoa butter, butterfat (milk), Soy lecithin as an emulsifier),
walnuts, sugar, eggs, salt, artificial vanilla extract, baking soda
Contains: wheat, eggs, milk, soy, walnuts
Net Wt. 3 oz (85.05 g)
Made in a home kitchen that
has not been inspected by the Michigan Department of Agriculture & Rural
Development
There are a few restrictions that you need to keep in mind
when selling and advertising your Cottage Foods. Although we are firmly in the
digital age, there are restrictions on the sale of Cottage Food goods solely
over the internet. It is okay to advertise the goods on the internet, however,
the actual sale and transfer of funds must take place in-person. When selling
goods, you must apply the appropriate tax as well as keep records of your sales
and present them upon request to a food inspector. You also are not allowed to
exceed annual gross sales of $25,000.Should you want to make more than $25,000,
you will need to apply for a Michigan food license.
Utilizing the Cottage Foods Laws is a great option for a
food business that is just starting operations, and it is a great step before
obtaining a Michigan food license. As long as you comply with the above
specifications, you will fall under the Cottage Food Laws provisions and it is
not necessary to apply or fill out any forms. While the Cottage Food Laws offer
state protections, keep in mind that you must comply with local zoning laws.