Can you legally sell your award-winning pies online?
Laws for selling food products online follow the same guidelines as selling food to the public offline. What type of licenses are required depend on which category the food falls in that is being sold. Stay in compliance with FDA rules, which regulate national Internet food and drug activity. Local health agencies also will have food regulation information available. Check with your state for details, for instance some laws will require inspections.
Licensing
A license is mandatory for retail and food processing. Retail involves the storing, handling or packaging of food sold to consumers. Food processing engages cooking, grinding, canning or heating that changes the structure of the original food. Laws depend on what facility the food is prepared in. To stay in compliance with local laws, many online food manufactures obtain commercial kitchens, as some states forbid making food at home for resale.
Sales Tax
Standard legal business practices also apply to selling food products online. You still need to register or incorporate a business name, obtain insurance and apply for a sales tax resale certificate. A trademark for the business may be appropriate to have on record. These tasks ideally should be attended to before you start selling food online. Internet sales tax is based on your state and local sales tax fees. Sales tax is charged to all online sales made in your state.
Packaging and Shipping
In addition to wanting your customer's food to arrive looking aesthetically pleasing and in one piece, you will need effective and compliant packaging and shipping. According to the Federal Food, Drug and Cosmetic Act (FD&C Act), a food additive is any substance that affects food on contact, including packaging and transporting. Plastics, paper, and adhesives must be FDA food grade approved in order to use in shipping food online. Verify zoning laws with local city and county offices for other shipping guidelines.
Food License Exemptions
The FDA and many states consider certain foods exempt from licensing requirements. Foods considered to be low risk of harm include candy, canned, dried and other food that is prepackaged. This means a party supply website could sell prepackaged candy refreshments along with their other nonfood products. A whole online business can be created selling only exempt food items. Selling excused food online may be a way to avoid some license laws.
Tags: food online, selling food, your state, compliance with, food products, selling food products, with local