California defines a caterer as a business preparing food for clients to eat in the venue of their choice. Starting a catering business in California in your home is an option, but you have a limited range of food that you can legally serve. Working out of a commercial kitchen costs more, but you have greater flexibility.
Starting a catering business in California from home requires you to qualify as a "cottage food" business. There are two classes:
Both class A and B have to meet state requirements:
As a cottage food business, you can only sell goods that the state considers safe. Baked goods, hot chocolate mix and donuts qualify, for instance, but meat, cheese and fish wouldn't be acceptable.
A cottage food business selling prepackaged food in California has to label the packages in compliance with state law. That includes your name and address, the name of the food, a list of ingredients, the weight and a statement that the food came from a home kitchen. Everything has to be written legibly in English.
Just like a commercial kitchen, your home catering kitchen has to meet cleanliness standards. Although your local government's health department reviews your permit to sell food from home, the California Food Act sets the standards:
If your business vision doesn't fit with a home catering business license, the alternative is a commercial kitchen. Setting up a kitchen of your own is pricey, but you may be able to rent space from an established kitchen part time or cut a deal with a local restaurant to use its kitchen. Sharing space can save costs until your business turns a profit.
To sell alcohol at an event you're catering requires another permit from the state's Alcohol Beverage Control Board. You apply to the ABC Board for a permit, which may cost from $142 to $976 depending on the population in your area. You'll also have to apply for a permit for each specific event, requesting it at least three days in advance.
To stay within the law, you have to complete the same paperwork as any other business. That includes registering your business with local government and possibly registering your business name. The exact rules for registration will depend on your local government's ordinances and regulations.
Fraser Sherman has written about every aspect of business: how to start one, how to keep one in the black, the best business structure, the details of financial statements. He's also run a couple of small businesses of his own. He lives in Durham NC with his awesome wife and two wonderful dogs. His website is frasersherman.com
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