Getting Started!

Who knew that starting a home-based bakery could be so difficult? Perhaps it isn't for everyone, but both of my parents are lawyers, so I don't get off easy.  I must cross all my t's and dot my i's. My first step was to discover the legal requirements of a "home-based cottage food" business in the state of Arizona (where I'm based).  Fortunately, in Arizona it is very easy to get set up as a cottage food baker.   

  

1. I am required to register with the Arizona Department of Health Services.  Their wonderful website can be found here.) Registration is free and contains an educational component which lets folks know what they can and can't sell, what is required on product labels, etc. I'm only allowed to sell home baked or confectionary goods (fine with me, that’s all I wanted to bake).  No cream cheese or buttery frostings and no cream pies are allowed.  This photo shows you what Arizona requires regarding labels.
2. The next step was to receive my food handlers’ certificate.  This can be completed quickly, cheaply and easily online. In a day or so I received my certificate.  This must be posted if you plan to have people come to your home to pick up your goodies. My goal is to deliver within a 5-mile radius with a $20.00 purchase.
3. Next, I had to check my city for any zoning and home-based business regulations.  These laws are available online.  Questions can be answered by calling the city. Thank goodness, no regulations impacted me. 
4. Now on to the scary part, sales tax.  It is only scary because it requires a lot of paper work.  Guess what, my business is exempt from the Arizona "sales" tax requirement!  Legally it isn't "sales tax" in Arizona.  It is "transaction privilege tax."  But that is even more than I wanted to know! This information is also online.  The Department of Revenue will also answer questions.

With a food handlers license and registration with the Arizona Department of Health Services, I was ready to go.  One of the first sweet breads I made for sale was this "Lemon Blueberry" loaf.  It's made with fresh blueberry and lots of lemon zest. The small loaves that were ordered made perfect stocking stuffers and holiday party gifts.

Just some final words, even if you live in Arizona please check the laws and regulations out for yourself (better yet, hire a lawyer).  I have two just a phone call away but not everyone is so lucky.