Starting a small food business in Tennessee is possible thanks to the state’s Cottage Food Law, which allows entrepreneurs to sell homemade food products with minimal regulatory hurdles. Here’s a breakdown of how to get started, including the types of food businesses that don’t require permits, relevant laws, and practical advice.
1. What Types of Food Businesses Don’t Require Permits?
Under Tennessee’s Cottage Food Law, you can sell certain non-hazardous foods that don’t require refrigeration. These foods include:
- Baked goods (cakes, cookies, pies, bread)
- Jams, jellies, and preserves (acidic fruits only)
- Candies and chocolates
- Spices, seasoning mixes, and dry herbs
- Granola and cereal
- Dry pasta
These foods are considered “low-risk” because they don’t require temperature control for safety. However, products like meats, dairy, or foods that need refrigeration are not allowed unless produced in a commercial kitchen.
2. Legal Requirements and Steps to Start a Food Business
A. Licensing and Registration
Tennessee’s Cottage Food Law allows you to sell homemade products without needing a food manufacturing permit as long as you’re preparing non-hazardous foods. However, you must still comply with the following:
- Register your business with the Tennessee Department of Revenue for tax purposes.
- Ensure your products are properly labeled (details in the next section).
- No inspection or health department approval is required for home kitchens that comply with Cottage Food rules.
B. Labeling Requirements
All cottage food products must include a label with the following information:
- Your name and address
- The name of the product
- A complete list of ingredients
- Allergen declarations (if the product contains nuts, wheat, eggs, etc.)
- A disclaimer that says, “This product was made in a private home not licensed or inspected by the state or local health department.”
Proper labeling is crucial for legal compliance and customer safety.
C. Sales Channels
Cottage food businesses in Tennessee can sell their products directly to consumers at:
- Farmers markets
- Community events
- Directly from your home (for pickup)
- Online sales within Tennessee
However, interstate sales or selling through third-party vendors (like grocery stores) is not allowed unless you’re producing your food in a licensed commercial kitchen.
D. Food Safety
While Tennessee doesn’t require formal food safety training for cottage food operators, it’s recommended to take a food safety course. Maintaining high standards of cleanliness and proper food handling practices is essential for ensuring customer health and satisfaction.
You can find food safety resources and courses at the Tennessee Department of Agriculture.
3. Tips for Starting Your Business
A. Start with Local Markets
Begin by selling at local farmers markets or community fairs. These venues allow you to meet customers directly, promote your products, and get feedback on what works and what doesn’t.
B. Focus on a Niche
Consider focusing on a unique product that meets specific dietary needs or preferences, like gluten-free cookies or organic jams. Specializing in a niche can help you stand out in a crowded market.
C. Build an Online Presence
Even though sales must remain local, promoting your business online is a great way to grow your customer base. Set up social media profiles or a simple website showcasing your products and allowing customers to place orders for pickup.
Starting a small food business in Tennessee is a manageable process if you follow the Cottage Food Law’s guidelines. Make sure to label your products correctly, stay within the permitted food categories, and take advantage of local markets to build your brand. For more detailed information and resources, visit the Tennessee Department of Agriculture to get started.
*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.