Get Legal

If there is anything that will stop someone from starting their own food business, it is the licensing and permit part of the job. When you don't know anything about the business, it can be hard to find the answers to all your questions. This is the main reason for this arm of our website. We know how hard it was to weed through all the possible food and EPA regulatory sites to find the information we needed to get started. There were many instances where we wished for a single site based in Austin that could give us at least an IDEA of how to get up and running. In our experience, we are always learning something new in this business and we'll be sure to post things as they come up. We've tried to keep the information generic and useful for people in any state, but with the licensing information we were specific to Austin.

To open a specialty food business, you need to fill out a few forms. Some of them require a number from a different form, so be sure to get them in the following order:

  1. All food that is sold to the public must be made in a regulated commercial kitchen. These are kitchens used by restaurants, catering companies, etc. and they are all inspected by the city and state every year. The first thing you need to do is find a commercial kitchen to rent because it will become the physical address on your licenses. Most kitchens are available for rent by the hour and the typical price in Austin is $20/hr. Ask other food producers what kitchen they use and see if you can get in there. We try to keep track of who is opening a kitchen and where they are available around town, so send us an email and we'll give you a lead.
  2. Decide if you are a partnership or a sole proprietorship and what your company name will be. Then get a Doing Business As (DBA) certificate. You will use this name on all other forms and you will also need the certificate to open a business account at your bank. It typically takes a couple of weeks to get the certificate. Once you've got a company name, download the DBA form from the Travis County Clerk's Office, fill it out, and get it notarized. Then take the form and $13.00 (plus $0.50 for each owner's name and $0.50 for each business name to be filed) to the County Clerk's Office at 5501 Airport Boulevard (call 854-9188 if you get lost). Be sure to take cash, cashier's check or money order, as they do not take personal checks.
  3. Check to see if you need an Employer ID Number from the IRS. This number is mainly used to let them know you exist, but it also lets them know that you are an employer. Go to the IRS website and fill out the online form to get your number immediately. You'll need this number on other forms.
  4. Go to the Texas Dept of Health Services website and submit the application for a Food Manufacturing permit. If you are unsure what type of category your product fits into, give them a call. This particular permit has to be renewed every two years and every time you move to a different kitchen/physical location. While you're on their site, read over the regulations for your particular category of food.
  5. To sell your product at a farmer's market or food show, you will need to have a Mobile Vendor's License from the Travis County Health and Human Service Department. Download the form from their website, fill it out, and take it in person with the fee to them in person (their preference). They will not contact you when the permit is ready to be picked up. Instead, contact them yourself in 2-3 weeks and ask if it is ready. Then pick it up.
  6. Lastly, you will need a Texas Sales and Use Tax Permit in order to sell your products to the public. This permit should be displayed wherever you are physically selling your products, which for us is at the farmer's market. Go to the Texas Comptroller's Office website and fill out the online form free of charge. It usually takes 2-3 weeks to receive the permit, but as far as we know, you don't ever renew this permit unless you change your business address (as opposed to the address of your kitchen).

Once you're done with all this legal mumbo-jumbo, it'll be a month before you get these permits in the mail and your bank account open, so thats a great time to concentrate on Making Your Product Presentable!