Chocolate is thought of as a recession-proof commodity.
If you've a talent for making chocolates, you can turn that into a successful side or full-time business. As of May 2011, 28 states have passed Cottage Food laws that permit low-risk foods to be produced in home kitchens and sold to the general public. Chocolate is considered one of these low-risk foods, but it is best to check with your local health department before you invest time and money into your chocolate candy business.
Start with Your Health Department
To find out if it is legal for you to operate a chocolate candy business in your home, it's best to contact your county health department or check with your state Department of Agriculture. You may find out that home-based food business are regulated at the city or county level. They will let you know if it is possible to have a chocolate business in your home and if there are specific rules you need to follow. For example, Kansas permits home-based food businesses as long as you have a separate kitchen in which to prepare the food you intend to sell.
Cottage Food Laws Vary from State to State
Even though your state may have passed a Cottage Food law, it is important to know that these laws are more liberal in some states. Even though the law may permit you to have a chocolate candy business, you may have to follow some strict regulations to stay compliant. States without Cottage Food laws may still permit you to have a chocolate candy business in your home, but you may be subject to inspection. In states without Cottage Food laws, local governments may still outlaw home-based food businesses. For example, certain municipalities in Kansas do not permit home candy businesses, even though the state allows it if you have a separate kitchen.
A Suitable Working and Storage Environment
Chocolate can be very fickle, and having a work space whose temperature and humidity you can easily regulate will help you produce a consistent product. For example, both working and storage environments for chocolate need to stay within an appropriate temperature and humidity range, or the chocolate could "bloom," or develop a whitish coating on the outside of the chocolate that is caused by either sugar or fat in the chocolate separating because of excessive heat or humidity.
Protecting Yourself and Your Home
If you are able to and decide to open a chocolate candy business in your home, it's best to form some sort of corporation and obtain an umbrella liability insurance policy for your business. An accountant can help you choose the type of business entity that suits your business plan. A proper business plan, along with keeping business and personal expenses separate, can protect your home and personal belongings if someone decides to take legal action against your business.
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