From factories to home kitchens, food processing and manufacturing facilities are regulated by the federal government as well as state and local agencies. These regulations vary significantly from state to state and depend on the type of food being prepared and the processing methods.
If you run or are starting a food processing or manufacturing business, navigating the licensing and permit requirements at the federal, state, and local levels is an important step before beginning operations.
Zoning laws
Zoning laws determine where your food processing or manufacturing business can legally operate. Most jurisdictions zone land for residential, commercial, or industrial use, and the permitted activities and scale of operations within each zone are regulated by local municipal zoning and planning boards.
Before committing to a location, it is important to confirm that your intended operations are permitted under the applicable zoning designation. Local boards may regulate factors such as hours of operation, parking, and odor or noise controls.
Zoning approval at the time your business opens does not automatically extend to future expansions. Any addition of physical space or increase in production capacity may require new approvals and must comply with current zoning restrictions and codes.
State licensing for food processing and manufacturing facilities
Food processing and manufacturing businesses are required to obtain a state license before beginning operations. These licenses are typically issued by the state department of agriculture, though in some states the department of health or another agency may oversee certain food categories.
Licensing laws vary significantly from state to state, and some can be very specific about what activities qualify as food processing. In Washington State, for example, businesses that repackage food are considered food processing companies, including those that transfer a food product from an unwrapped state into a new container.
A license may cover only the products, processes, and operations specified in the original application. If you plan to add a different type of food product, you may need approval to expand your license accordingly. In some cases, an entirely separate license is required. Alcohol manufacturers, for instance, may need to be licensed by the state liquor authority in addition to holding a food processing license. A food manufacturer that plans to sell directly to the public may also need a separate retail license.
If your food product includes milk, eggs, juice, seafood, and certain canned foods, you are subject to additional federal regulatory requirements to ensure that those products are safe and free from contamination.
Obtaining a food manufacturing or processing license can be time-consuming and complex. The review process can involve submission of floor plans, labeling information, proof of insurance (including workers’ compensation), and other documentation. Your facility may also need to be inspected before you are issued a license.
Cottage food laws
If you are operating or considering a small home-based food business, many states have cottage food laws that allow the production and sale of certain low-risk foods under a separate, more streamlined licensing framework. Permitted food types, sales limits, and labeling requirements vary by state.
Renewals
State food processing and manufacturing licenses typically require periodic renewal, most commonly on an annual or biennial basis. Renewal can involve updated fees, documentation, and in some cases a facility re-inspection. It is important to track renewal deadlines, as operating with an expired license can result in fines or suspension of operations.
Are food licenses transferable?
A license is typically assigned to a specific owner and location and cannot be transferred. If you start a new business, change ownership, or change the physical address of the facility, you will need to submit a new application and pay a fee.