The Facts About Licensing, The Health Department and Your Vending Cart

June 12th, 2011 by

What are the facts about the licensing and the health department that I need to know? This article is an excerpt from our FREE Cart Vending Guide – Click the book cover below for details on how to download for free. One of the first things you want to do is create a business identity, or business name. If you use any business name other than your last name, you will need to register a DBA (Doing Business As…) at your local county clerk’s office. You don’t need a business name to operate a push cart, but it may help you build credibility at your bank and with suppliers and event coordinators.   By default, your business will be a sole proprietorship. In other words, if you do nothing, you are a sole proprietorship. If you choose, you can create a corporation or a limited liability company or a partnership. I’m not a CPA, so I’m not authorized to tell you what is best or right for your specific situation, but in my opinion, you should keep things simple. The vast majority of small businesses are sole proprietorships.  Most sole proprietorships can simply claim their profits on their tax returns as business income. So…keeping it simple is my recommendation.   The Health Department   The Health Department can be a pain, but be assured that they play an important role. It is easy to make someone sick with food and the inspectors play an important role in limiting this unfortunate aspect of the food business. It doesn’t feel good when your business is being judged, but be aware that the inspectors could one day save you from getting someone deathly sick. So rather than fight them, try to work with them cordially. In the end, everybody wins. The type of license or  and process of getting one may vary greatly depending on whether you are planning a temporary concession (events, parties, different locations on different days, etc.) vs. a permanent location. Permanent location permits are more difficult to get as they might require more out of your operation. If the health department thinks you are going to be in one spot, they will treat your operation more like a restaurant and might expect more. By more I mean, more structural requirements, water requirements, etc.   It used to be that the regulations were all over the place. Varying greatly from one county to the next and you could never tell if you were moving from one event to another if you met that county’s requirements. Now however, counties are required to stick to more basic standards set by the state’s regulations. This is a good thing because chances are if you meet the states requirements and move to do an event at a different county, you are probably within that county’s requirements. That said, you should still make sure that you meet the county’s requirements before you sign up for an event in a different county.   As an FYI, the name of the department that will issue your permit can vary – in some areas it’s the Department of Agriculture. In others, permits are issues by the Health and Human Services Department.  You might also check under the Department of Environmental Health.   Because the vast majority of people who bought this book will are planning a push cart business, we will focus on a Temporary Permit or otherwise called a Health Permit. Keep in mind that there is no black & white process here. Sometimes the necessary requirements are up to the interpretation of the specific inspector you deal with. But be assured that the requirements for a temporary permit are a little more lax.   A cart selling “non-hazardous” items – like pre-packaged ice cream novelties may not need any licensing at all. A cart dipping Italian ice may not need refrigeration, or a sink. The requirement for a permit may simply be that each flavor has its own scoop, so that the scoops don’t need to be washed off or put in a dip well. If you are going to dip ice cream, most heath departments consider it a “hazardous” item, so be prepared for more intense requirements like a hand washing sink, a sanitizing sink, a dip well, a sneeze guard and more. Dipping ice cream might generate the most sales, but it may also cost you the most to get going. And if you are going to dip ice cream, you might have to have access to electricity to run the sink (pump requires 15 amps). That said, you can put together gravity fed systems for less and with some customization, make it happen for less and without the need for electricity (if you have cold plates).   Some health departments will require an inspection of your “commissary”. This is a fancy word for the place where you will keep your cart, back up freezer and anything else you need to run your business. This could be your home, a warehouse or an area near where you will be selling from (some people will make deals with a nearby business or restaurant and pay a small rent fee to keep the stuff there. Other health departments do not have a requirement to inspect or license the commissary area.   The bottom line is that you will need to ask a lot of questions of your local county health department representative. Read a lot and familiarize yourself with all the requirements. This should all be done early in your business planning process, to ensure you make the right choices before you go out and buy equipment.   Food Handlers Card: You will need to get a food handlers card. You simply take a multiple choice test that shows you understand the basics of food handling procedures. The card is good state wide, but if you are going to cross state lines, you should get that states food handlers card too.   Insurance: Business liability insurance is a wise purchase, but it may not be necessary for all events. Get a feel for how many of the events you want to participate in will require the insurance and then make a judgment on whether or not you want to make the investment. If you don’t have it, make sure you are following all the rules and be as careful as possible to ensure that you do not make a mistake that will cost you. Neil Williams President KeyWord Farm, LLC www.TurnKeyParlor.com 877-817-5716 877-632-2210 (fax) [email protected] BLOG My Humble Beginnings in Paradise  

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