How to Start a Bakery Out of a Home in Michigan
If baking is your passion and you reside in Michigan, you may consider beginning a home-based business and making good profit from it. However, you need to be aware of the laws and rules of your state. Be equipped with all information necessary to start a home-based bakery. Certain areas or states in the U.S. do not permit a home-based food preparation business. The food and agricultural agency or the health department can point you in the exact direction or provide information directly.
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Instructions
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Decide on the items you will sell. Choose potentially non-hazardous foods that require no time or temperature control for the purpose of safety. Initially, the laws of Michigan did not permit a baking business from home for-profit but the new Michigan Cottage Food Law (enacted in 2010) has brought about specific changes. Obtaining inspection and license from the Michigan Department of Agriculture (MDA) is not required in such cases. Baked goods include dried herbs and vinegar, dry mixes, granola, cereal, candy, popcorn, jellies, breads, cookies, fruit pies, cotton candy and jams.
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Keep required and minimum business and baking equipment such as a stove, refrigerator, oven and other equipment for your trade ready. Obtain Michigan tax IDs to take care of legalities.
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Contact your local county office to check if a DBA (Doing Business As) is required for you. Contact the Michigan Department of Treasury to identify the list of food products that are taxable. Make sure to meet your local zoning and other laws. The Michigan Cottage Law exempts you only from licensing and inspection of the MDA.
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Prepare foods in your kitchen and store them in your residence. It can be either an attached garage or basement of your home where food is prepared. Goods cannot be prepared in your property's outbuilding such as a barn or shed.
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Label your home-based products appropriately. Include all basic information such as name and venue of your establishment, name, ingredients and net weight of the product, allergen labeling and a disclaimer stating that your home kitchen is not inspected.
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Sell your foods directly to consumers through farmers' markets, roadside stands and such similar points. The Michigan Cottage Food Law does not permit selling to restaurants or retailers. This is because your kitchen is neither inspected nor licensed. Selling your goods to brokers, wholesalers, or by mail order and through Internet is also not permitted.
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Tips & Warnings
Although it is a good practice to have a concrete business plan, it is not necessarily important since it could hold up your efforts to begin and proceed.
Ensure to follow approved storage areas. Preparation should be done only in your kitchen and storage can be done in an attached garage or basement of your home only.
Understand the kinds of food that should not be prepared in your home kitchen.
References
Resources
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