Cottage Law Comes Back To California

This is huge!  I just heard from a co-worker and friend that Governor Jerry Brown just signed legislation that goes into effect as of January  1st, 2013 that will allow people to produce and sell some (low risk) food items out of a home kitchen.

From my understanding, years ago California already had something on the books like this.  Many states in the U.S. have “cottage laws”.  Unfortunately, California tends to overreach sometimes and has become very tough on businesses.

Before this legislation, my alternative wasn’t pretty.  I had to either rent a commercial kitchen full time.  Which by the way would have cost me between $40,000 – $60,000 / per year.  Or, I would have had to look for some sort of community kitchen to use.  My best bet would have been a local church or synagogue kitchen.  The problem with that would be availability, and possible liabilities to my equipment.  Do I leave my equipment there full time or do I take it every time?

Now with the new cottage law, for at least the first year we are open, I will be able to run the business out of my house.  I simply have an inspection and get a permit, and I’m in business.  The only catch (of course there’s a catch), is that I can only make so much money (gross not net) in the business.  Anymore than the limit, and I have to get another space.   I guess that’s a good problem to have though.