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What is the cost (approximately) to start a home made food business in New York City, and what are the required things to do legally.
Hello! Thanks for your question about starting a home-made food business in New York City. The most useful sources I found to answer your question were government websites on this topic, as well as trusted media outlets discussing the same issue. The short version is that you will want to apply for a Home Processor Exemption from the New York State Department of Agriculture and Markets. If you are not eligible for this, you will need to apply for a food service establishment permit.
One note, I am not a legal professional, so please do not take these notes as such. For suitable legal advice, please take it up with a legal professional or the relevant government authority.
Below you will find a deep dive of my findings.
HOME PROCESSOR EXEMPTION
The ideal scenario for you is to secure a Home Processor Exemption from the New York State Department of Agriculture and Markets (DoAM). That said, there are certain restrictions on this type of license that may make it unsuitable for you.
One general note as well, regardless of what type of license makes the most sense for you, you should also consult with the local zoning officials to determine whether there are any zoning conflicts with your plan. Additionally, while it was not clear whether it was explicitly required to register a business, I did find mention of this in relation to generally starting a home-based food business. Information about registering your business can be found here (including forms), and the costs range from $100 to $250, depending on your location and the entity type you choose.
*** Allowed Foods for a Home Processor Exemption***
"Breads (without containing fruit or vegetables);
- Rolls;
- Cookies;
- Cakes (except specialty cakes such as wedding/birthday);
- Cupcakes;
- Brownies;
- Fudge;
- Double-crust fruit pies;
- Traditional jams, jellies, and marmalades made with high acid/low pH fruits;
- Repacking/blending of commercially dried spices or herbs;
- Popcorn/caramel corn;
- Peanut brittle;
- Granola (using commercially processed nuts); and
- Candy (excluding chocolate)."
*** Restricted Foods ***
According to the DoAM, preparation of the following foods cannot be completed with a home processor exemption, due to health concerns:
- "Breads containing fruit or vegetables;
- Pickled or fermented foods;
- Cheesecake or cream-filled pastries;
- Meat, fish, or poultry products;
- Vegetable oils or blended oils;
- Any products containing raw nuts;
- Chocolate candy/Products dipped in chocolate;
- Wine jellies, vegetable jellies, chutneys, fruit butters;
- Cooked or canned fruits or vegetables;
- Cheese, yogurt, fluid dairy products;
- Sauces, salsa, marinades;
- Custom cakes, cupcakes, cookies, etc.; and
- pet foods and pet treats."
*** Other Restrictions ***
Foods prepared under the DoAM exemption must be prepared using the standard kitchen facilities of the home. Using a separate "commercial" kitchen within the home for food preparation, for example, requires a separate permit (see below).
The DoAM exemption prohibits direct internet sales of home-produced goods, and direct-sales from the home are also prohibited. Goods prepared under a home processor exemption are to be sold via wholesale marketing or retail agricultural venues such as farmer's markets. That said, it is totally okay to have a website to market your goods (for example, tell your story, where to buy them, etc.)
All foods prepared on the home process exemption must be properly labelled, including with the name of the product, "the ingredient list in predominance by weight, net quantity of contents, and processor name and full address." Glass containers for things such as jams or jellies must also have a suitable metal lid.
Interstate sales are also prohibited under the Home Processor Exemption, and exemptions are not available to anyone that has a separate food-related license from the DoAM or Ministry of Health (MoH).
*** Applying for a Home Processor Exemption ***
Applying for a home processor exemption seems relatively straightforward and has no cost.
A copy of the Home Processor Registration Request form needs to be filled out and submitted to the DoAM either via e-mail (agr.sm.hpregistrations@agriculture.ny.gov) or postal address:
NYS Department of Agriculture and Markets
Food Safety and Inspection
10B Airline Drive,
Albany, NY 12235
If your water comes from a private well (which I assume it does not in NYC), you would also need to have a water test completed to investigate for Coliform, and this submitted along with your application.
If an exemption is not suitable for your business based on your premises (separate "commercial kitchen" in the home), activities (selling direct online), or food that you are preparing (based on the above lists), you will need to get a Food Processing Establishment License.
The application form for a Food Processing Establishment License can be found here, and the cost is $400. Once the application has been submitted, an inspection is conducted before the application is approved, and the form indicates that application processing may take up to 60 days. The permit must be applied for every two years.
Details regarding the grounds on which a commissioner may reject/revoke a Food Processing Establishment License can be found in Section 251-z-5 of this document.
Applying for a license also requires a company to have workers' compensation insurance. While this is too extensive an area to go into here (with a wide range of different options available), the core NY government resource regarding this can be found here.
*** Food Protection Certification ***
In order to apply for a food processing establishment license for retail food sales, at least one person in a management or control role must hold a food protection certification, and a copy of this certificate must be submitted with the application. A food protection certification can be attained through an approved in-person course ($114) or students can take a free online course and then pay $24.60 to take the final exam for the certification.
That said, there is an exemption for businesses that are owner-operated (or with only the owner plus not more than two employees) or annual gross sales in the previous calendar year are less than $3 million. However, at any time a commissioner may require operators to get the necessary certifications regardless of the above exemptions.
*** Submitting the Application ***
Applications and supporting documentation should be mailed to:
NYS Department of Agriculture and Markets
Attn: Food Safety License
Unit 10B Airline Drive,
Albany, New York 12235
CONCLUSION
To wrap it up, depending on the activities you are planning to pursue, you will need to either apply for a Home Processor Exemption (Free) or a Food Processing Establishment License ($400). I hope the above information proves useful to you, and good luck with your new venture!
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