Can You Sell Food and Beverage out of Your Home in Washington?Under Washington state law, it is illegal to sell food and beverages that are not pre-packaged from a private home without a valid food service license. Additionally, it is illegal to manufacture, process, store, or distribute food for sale without a valid license.
What is the Cottage Food Law in Washington?The Cottage Food Law in Washington is a law that allows home-based food producers to make certain food items and sell them directly to consumers without needing a license or inspection from the Washington State Department of Agriculture. These food items include baked goods, jams and jellies, candy, dried herbs and spices, dry mixes, honey, maple syrup, nut mixes, popcorn, and some canned fruits and vegetables. The law also sets a limit on the annual gross sales revenue of $50,000.
What is Required on a Cottage Food Label in Washington?In Washington, cottage food labels must include the name of the food product, a list of all ingredients in descending order by weight, the net weight or volume of the product, an unassuming statement of potential allergens, such as “may contain traces of nuts, wheat, etc.”, the name and address of the producer including a phone number, a use-by date, and a statement that reads “This is a cottage food product and is not inspected by the Washington State Department of Agriculture”.
Are Cottage Foods Taxable in Washington?Yes, cottage foods are taxable in Washington. Sales tax is due on all food sales, including cottage food items. Washington State Department of Revenue requires cottage food producers to collect and remit sales tax on all sales when they reach gross sales of $10,000 or more per year. For sales that are less than $10,000 per year, cottage food producers are not required to collect sales tax but they must still report their gross sales to the Department of Revenue each year.
Do You Need to Establish a Business Entity to Sell Cottage Foods in Washington?Yes, you will need to establish a business entity to sell cottage foods in Washington. Depending on the type of business you are operating, this could include registering as an LLC (limited liability company) or forming a corporation. You will also need to obtain a business license and comply with the state’s cottage food laws and regulations.
What Permits do You Need to Sell Food out of Your Home in Washington?In Washington, you must obtain several permits before you can legally sell food from your home. These permits include:
* A license from the state’s Department of Revenue
* A permit from the state Department of Health
* A business license from your local government
* An inspection and approval from the local health department
* A food worker card issued by the state health department
* A seller’s permit from the state Department of Revenue
* An appropriate zoning permit from your local government
* Any other permits or licenses that may be required by your local government