My sister and I started a event planning business earlier this year in Denver, CO. I have been baking cakes/cookies/cupcakes etc. for my family’s birthdays and parties but I want to start selling under our name to others. We don’t get many requests for baked goods but I wanted to make sure that we can use our LLC name and that we would qualify under the law.
Also, I’ve been getting familiar with the laws and I plan on getting food prep certified. What else do I need to do?
If our business is qualified to be part of the Cottage Food Act, I wanted to know if I would still have to label my cakes with a full list of ingredients? If it’s a tiered cake, would it still have to be delivered in boxes with these labels and assembled later?
Ultimately, my question is if we can qualify for the Cottage Food Act or if I would have to look into pursuing a full food license, liability insurance, and commercial kitchen rental.
I have heard that CO requires all of it’s CFOs to be sole proprietorships, and if so, it is the only state to do so.
If that’s not true, then you probably already have a lot of what you need to get started. You’ll need to check again with your local depts to see if any food-specific permits are required, as well as make sure your business is abiding by zoning requirements.
Even if you have to be a sole proprietorship, you might be able to start a partnership that’s separate from your LLC and do this from your home kitchen.
If you can legally operate from home, you still need to make labels with all the ingredients listed. However, with event cakes, the cake doesn’t need to be boxed and the label can be given to the buyer separately.