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Austin TX Business Law Blog

Tuesday, October 7, 2014

Cottage Food Law Reform Has Increased Entrepreneurship in Texas

There is a new movement among Americans- people are earning a living from food made in their home kitchens.  Bakers, canners and gardeners are starting their own businesses and selling their cottage foods to consumers.

Texas has recently passed and reformed the Cottage Food Law legalizing this activity in the Lone Star State.  
The Cottage Food Law was originally passed in 2011 and allowed individuals to sell baked goods, preserves and dried herbs out of their homes.  Then in 2013, the Texas legislature expanded the law to include many different kinds of foods, including but not limited to, candy, coffee and popcorn at craft fairs and other venues.  The revision of the law has also stopped municipalities from using their zoning laws to prohibit the production of cottage foods.  While they could once stop individuals from conducting this type of business out of their residential kitchens, they are now barred from doing so.  While the law has opened up a variety of doors for those wishing to sell homemade foods, there are a number of restrictions.  Cottage food makers cannot produce foods that have the potential to be hazardous to consumers.  They must also complete a food handling course and obtain a certificate of completion.  These courses are readily accessible and affordable.  In addition, all products must be appropriately packaged and accurately labeled in order to be sold.  

Cottage food laws have allowed and inspired many entrepreneurs to start their own businesses out of their homes.  While statistics on the number of businesses started are not available, over one thousand individuals have taken courses specifically related to cottage food handling over the last year.  These laws are enabling businesses to operate with low or no overhead costs and are therefore giving individuals an option that was not available before.  

Although the cottage food business is one that you can engage in out of your home kitchen it is still important to adhere to all of the formalities applicable to any other business.  An experienced business law attorney can assist you with legal concerns associated with formation and operation of a business.  If you are considering starting a cottage food business, or any other type of venture, call Austin, Texas business law attorney Sanjeev Kumar at (512)323-6060 for a consultation today.


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