Nebraska’s Cottage Food Laws provide a fantastic opportunity for aspiring food entrepreneurs to operate small food businesses from their homes. Whether you want to sell baked goods, jams, or other non-perishable items, Nebraska’s laws allow you to start a business with minimal barriers. This guide offers a detailed look at what you need to know to launch a successful food business, including which businesses don’t need permits, legal steps to follow.
1. What Types of Food Businesses Don’t Require Permits?
Under Nebraska’s Cottage Food Law, you can sell certain “non-potentially hazardous” foods prepared in your home kitchen without needing a commercial kitchen or food establishment permit. These foods are considered safe because they don’t support the growth of harmful bacteria and generally don’t require refrigeration. The following items are commonly allowed:
- Baked goods (cookies, muffins, cakes, bread, etc.)
- Jams, jellies, and preserves made from fruits
- Popcorn and flavored popcorn
- Candies and confections
- Honey and honey-based products
- Dried herbs, teas, and spices
It’s important to note that “potentially hazardous” foods, such as those containing meat, dairy, or other perishable ingredients, must be made in a licensed commercial kitchen. For full details, visit the Nebraska Department of Agriculture.
2. Where Can You Sell Cottage Foods in Nebraska?
Nebraska’s Cottage Food Law allows for direct-to-consumer sales, meaning you must sell your products directly to individuals. You can sell at the following locations:
- Farmers markets
- Craft fairs or community events
- Roadside stands
- Direct sales from home
However, cottage food producers are not permitted to sell their products wholesale (e.g., through grocery stores) or via online platforms for interstate shipping.
3. Legal Requirements to Start a Food Business in Nebraska
To start your cottage food business in Nebraska, it’s crucial to follow specific guidelines to remain compliant with state law.
A. Sales Limits
There is no official sales cap for cottage food businesses in Nebraska, which allows you to grow your business without worrying about hitting a financial threshold. However, you are limited by the direct-sales requirement, which means you cannot sell through third-party retailers or ship your products.
B. Labeling Requirements
All cottage food products must have clear labels that provide essential information to the consumer. The label must include:
- The name and address of the cottage food operation (your name and home address)
- The common or usual name of the product
- A complete list of ingredients in descending order of predominance by weight
- A declaration of any allergens present, such as nuts, dairy, eggs, or wheat
- The following statement: “This product was produced in a home kitchen not subject to state inspection.”
Proper labeling is crucial to ensuring your customers are informed, and it helps protect your business from legal issues.
C. Food Safety
Although Nebraska’s Cottage Food Law does not mandate food safety training or certification, it is highly recommended to complete a certified food handler course. This will help ensure that you are following best practices for food hygiene and preparation. A course in food safety can also give customers confidence in the quality and safety of your products.
D. Business Licensing and Zoning
While Nebraska does not require a special food permit for cottage food businesses, you may need to register your business locally, depending on your city or county. Check with your local government about:
- Zoning laws: Some residential areas may have restrictions on home-based businesses, so it’s important to check whether your home location is zoned for this type of activity.
- Business licensing: While a specific food license might not be required, you may need a general business license to legally operate.
- Sales tax: In some areas, you may be required to collect and remit sales tax on your products. Consult with a local tax professional or your county tax office for guidance.
4. Important Considerations for Nebraska Cottage Food Businesses
A. Farmers Markets and Public Events
Farmers markets are one of the best venues for cottage food sellers in Nebraska. Not only do they provide direct access to customers, but they also allow you to gather feedback on your products. Be sure to research the requirements for participating in local farmers markets, as some may have their own vendor guidelines.
B. Scaling Your Business
If your business is successful and you wish to expand, Nebraska’s Cottage Food Law does limit you to non-potentially hazardous foods and direct-to-consumer sales. For growth beyond these limitations, you may need to transition into a commercial kitchen and obtain a retail food establishment license. This will allow you to:
- Produce foods that require refrigeration, like cheesecakes, custards, or meals with meat
- Sell products wholesale to stores or restaurants
- Ship your products across state lines
C. Insurance for Food Businesses
Though not required by law, it’s a good idea to obtain liability insurance to protect your business in case of any claims related to foodborne illnesses or product defects. You can often find affordable coverage designed specifically for small food businesses through specialized insurance brokers.
D. Promoting Your Business
Once you have everything set up, focus on building your brand and promoting your products. Social media platforms like Instagram and Facebook are excellent tools for promoting food businesses. Many cottage food sellers find success by sharing photos of their products, offering limited-time deals, and encouraging word-of-mouth recommendations.
Additionally, building a local presence at farmers markets and community events helps create loyal customers. Always provide samples when possible and collect feedback to improve your products.
*Disclaimer: This article or any content hereof is not a substitute for professional legal advice, does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.