Starting a successful jerky business takes more than knowing how to make a tasty snack.
The question, “what business license do I need to start my business” is a common one, but in reality, a business will often need multiple licenses, permits, and registrations from federal, state, and local agencies to get started.
Let’s look at the licenses to consider when starting a jerky business.
Related: Guide to starting a jerky business
What Licenses Do You Need to Start a Jerky Business?
Federal Requirements
Generally, jerky operations that sell product across state lines will need to prepare their meats in a USDA certified kitchen. USDA Food Safety and Inspection Services inspect facilities to make sure the meat, poultry, and egg products are prepared safely.
Even though a small jerky manufacturer selling locally may not be required to be USDA certified, the USDA provides safety guidelines for jerky production.
State Licensing
In general, smaller jerky businesses that sell directly to customers, such as local markets or events, will not need state licensing. Instead, they are typically regulated by their local health department. Jerky businesses selling to retail stores or distributors will generally need state licensing through their state’s Department of Agriculture.
In most states, jerky is not allowed to be sold under cottage food laws.
Food Service License
In order to sell process and legally sell jerky, a food service license will be needed. This licensing helps ensure food-service establishments are following health and safety requirements and keeping the public safe. Registration is different by location and is typically through the local health department, though a state license may also be needed.
Licensing typically requires employees have a food handler certificate or food sanitation certification, in addition to the facility being randomly inspected.
Outside of a food service license, there aren’t any other licenses specifically for a jerky business; however, there will likely be general licensing requirements for starting a business. Here are a few of the common licenses and permits that a jerky business may need:
General Business License or Permit
Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.
Learn more: Business license requirements by state
Business Name Registration
While not necessarily a business license, it’s worth noting that in order to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.
For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).
Learn: How to register a DBA
Corporations and LLCs register are a little easier in that their name is registered when forming the entity.
Related: What is the difference between a sole proprietorship, partnership, Corporation, or LLC?
Federal Employer Identification Number
The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).
Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.
Sole proprietors and single-owner LLCs without employees can instead use the owner’s social security number.
Learn: How to get an EIN
Sales Tax Permit or Business Number
In order to sell products and/or offer certain services, a state sales tax permit (business tax number or tax ID number) may be needed. This permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency to collect and remit sales tax on items sold by a business.
Learn: How to get a sales tax permit
Resale Certificate
When buying inventory that is resold to customers, such as meat, spices, and packaging, etc., the business can purchase these items tax-free. A resale certificate (sometimes referred to as a seller’s permit) allows a business to purchase inventory, and instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product.
A resale certificate only allows a business to not pay sales tax for items being resold, and sales tax will still need to be paid for supplies or equipment.
Learn: How to get a resale certificate
Certificate of Occupancy
In most communities, a jerky business will need to secure a Certificate of Occupancy (CO) before operating in a commercial building. This certificate is typically obtained from the city, but sometimes from the county, and allows a business to occupy and operate from a building provided the building complies with zoning regulations, building codes, and any other local requirements.
A home occupation permit is sometimes required by city government for a home-based business.
Before starting your jerky business, be sure to check with the local zoning department to ensure the business can legally operate out of the chosen location.
The process of identifying all of the licenses and permits necessary to start a jerky business may feel confusing and overwhelming. It is critical to do this right the first time, otherwise, your business may be shut down after opening until all licenses are obtained.
For some additional peace of mind, companies like Incfile or Legalzoom can do the research and ensure you have all of the proper federal, state, and local licenses to start your business.
