Food & Drug Protection Division

Food Program

Starting a home-based food business

Step 1. Verify that your product is low-risk.

• baked goods
• jams and jellies
• candies
• dried mixes
• spices
• some sauces and liquids

Certain products such as canned goods and liquids must be evaluated to determine if they are low-risk or high-risk. N.C. State University's Food Science Department will analyze products for risk. The analysis will include specific recommendations on how to process and package your food. It will also include recommendations on the next step in getting your product to the market. $50 fee. For more information, go to: www.ces.ncsu.edu/depts/foodsci/ext/programs/ncfood/testing.htm.

All high-risk products must be produced in a non-home based commercial facility . These include, but are not limited to:

• canned goods
• dairy products
• seafood products
• bottled water

If you are starting a non-home based commercial food processing facility for high risk or low risk foods, click here for start-up information.

Step 2. Do you have an indoor pet?

If so, you cannot manufacture foods in your home. Doing so is a violation of the N.C. Food, Drug and Cosmetic Act.

Step 3. Check local license and zoning information

If you have determined that you qualify as a home-based business, check with your local government for compliance with local zoning laws. Also check your neighborhood covenant to be sure a home-based business is allowed in your neighborhood.
County government links: www.ncinfo.iog.unc.edu/library/counties.html
City or town government links: www.ncinfo.iog.unc.edu/library/cities.html

Step 4. Well water inspection

If your only water source is from a well, the water must be tested for coliform bacteria before an inspection is made. Have the test report ready for the inspection.

Step 5. Obtain an inspection

Contact the N.C. Department of Agriculture and Consumer Services' Food and Drug Protection Division at (919) 733-7366 to obtain a copy of the regulations and arrange for an inspection of the facility.

The inspection process:
A home-based kitchen inspection checks to be sure the kitchen is clean, constructed of suitable materials and is free of any pest activity (insect or rodent). Remember that indoor pets would also be considered pests. No indoor pets or pests.

Standard household equipment and appliances are acceptable. The equipment and appliances can be used for both personal and commercial use. Standard household sinks are acceptable. The kitchen should be free of decorative materials which could collect dust. Running water at a suitable temperature and pressure is required. There is not a specific temperature requirement for hot water, as long as it is hot enough to accomplish cleaning and sanitizing of equipment and utensils.

Waste should be conveyed away from the house in an acceptable fashion.

If home is on a well, the well must be tested once a year for coliform bacteria and the results provided. Any lights in the kitchen or any processing or packaging areas should be shielded against accidental breakage.

The inspection will be focused on the kitchen and other areas where processing and packaging of products may take place. Areas of the house in which materials, ingredients and equipment are stored will also be inspected. Inspectors may also walk around the exterior of the house to verify that the foundation is intact and will not allow for the entry of pests.

A permit is not issued, but inspectors will alert the homeowner to any possible violations of the N.C. Food, Drug and Cosmetic Act.

Step 6. Food product labels

Any products to be sold as consumer self-service type items must be packaged to protect them from contamination. A label must be affixed to the package bearing the common or usual name of the product, a declaration of ingredients in descending order of predominance, the name and complete address of the firm or party responsible for the manufacture of the product, a declaration of the net quantity of contents, and nutrition labeling information unless otherwise exempt. Some food product labels may also be required to bear product coding and other statements related to product storage. Food product labels that do not conform to all required labeling regulations may be deemed misbranded.

Key Contact:
Michael M. Woody, Food Compliance Officer
Telephone: (919) 733-7366
Fax: (919) 733-6801
E-mail: Michael M. Woody

Other steps:

File for a tax number

There are several types of tax numbers. If a business is planning to have sales, a Sales & Use Tax number (AS/RP1 form) is required. Businesses having employees are required to obtain a Federal Employer Identification number (SS-4 form) along with a N.C. withholding tax number. The N.C. Business License Information Office can provide application forms to businesses for these numbers.

Register business name

The type of business structure determines where a business name (assumed name) should be registered. A Certificate of Assumed Name for sole proprietorships and partnerships must be filed with the Register of Deeds in the county or counties where businesses plan to operate. Corporations or Limited Liability Companies must register their business names with the N.C. Secretary of State, Corporations Division.

Apply for a UPC code

Many retailers now require a Uniform Product Code (UPC) for each product they carry. A UPC code allows automated checkout stands to read the name of the manufacturer and the specific product from the bar code.

The Uniform Code Council Inc. (UCC) is the central management and information center for manufacturers, distributors and retailers participating in the UPC system. This organization is not a government agency. It is an administrative council that exists specifically to develop standard product and shipping container codes, control the issuing of company identification codes, provide detailed information and to coordinate the efforts of all participants. Although membership in the UCC is voluntary, it is required to obtain a UPC identification number.

Uniform Code Council Inc.
Suite 300
7887 Washington Village Dr.
Dayton, OH 45459
(937) 435-3870 or (800) 543-8137
www.uc-council.org

Marketing assistance

Create your own free Web page at the NCDA&CS General Store. The General Store is a one stop directory for finding North Carolina Agricultural goods and services.

Goodness Grows in North Carolina is an identification and promotional program designed to heighten awareness about North Carolina agriculture and boost sales by helping consumers retailers, and wholesalers to easily identify top-quality products that are grown, processed or manufactured in our state. To find out more, go to the GGINC Web site.

Other resources

NC State Food Science Department's Guide for Small Food Processors in North Carolina

Business ServiCenter by the N.C. Department of Commerce
Office of Business & Entrepreneurial Services

N.C. Department of Agriculture and Consumer Services' Marketing Division Agribusiness Development Office

FDA Good Manufacturing Practice Guidelines

Blue Ridge Food Ventures - a full-scale commercial kitchen operation for value-added food production in western North Carolina.