Licensing your Food Business: A Step by Step Guide
Food is special for many reasons. One of the not so fun special reasons is there a two parts to food business licensing. The first is setting up your business as a legal entity (something everyone does). The second part is for food businesses specifically, which is gaining a license to sell (so get even more legal!) from the health department, FDA, and other local and federal agencies.
In this post, we will take you through the requirements your business must meet to legally sell your products to customers. One point of note is that the content in this post is specific to Washington, DC, and each state has its own laws around what a food business must do to legally sell. If you are not located in Washington, DC, we recommend reaching out to your local health department for more information. So with that, let’s explore how you can start selling your food product here in DC!
Step 1 - Get your DUNS Number
If you’re focusing on Food Manufacturing in Washington DC, the first step to registering your food business is to get your DUNS number from Dunn & Bradstreet. The reason for this is that the Food and Drug Administration (FDA) requires what’s known as a Unique Facility Identifier, or UFI to register your business.
Make sure that the address on your DUNS number matches the facility where you are manufacturing out of!
Step 2 - File Your FDA Registration Application
The Food and Drug Administration (FDA) is the federal agency responsible for making sure consumers food and drugs are safe to consume. They do this by requiring all food businesses to follow specific food safety practices.
Your registration with the FDA is the first step in the process because information provided by the FDA, once you are registered, will be used throughout the rest of the process.
The registration application itself is in 12 parts. Much of the language is difficult to understand, but fortunately the FDA provides their step-by-step instructions on going through each portion of the application to make sure you understand what they are asking for, and fill out the form appropriately. We highly suggest you reference this guide as you complete your registration! Another reminder to make sure the address listed on your DUNS number matches the facility you are registering!
Step 3 - Acquire Your Certificate of Good Standing
Just as it sounds, your Certificate of Good Standing signifies that you are in good standing with your incorporating state on things like documents filed, taxes, etc. The certificate is issued by the state in which you have established your food business. Each state has its own approach to requesting and obtaining a Certificate of Good Standing, so we advise a web search for “(Your State of Establishment) Certificate of Good Standing” to find the necessary steps. For our businesses who establish in Delaware, the government uses this page to facilitate requests for their Certificate of Good Standing.
Step 4 - File Your Foreign Registration Statement (If Not a Business Established in DC)
Foreign in this sense does not mean from outside the United States, but outside of Washington, DC. If you are a business that was established outside the District of Columbia, you will need to file a Foreign Registration Statement (FN-1) with the DC government to signify you are an entity the DC government recognizes as a legitimate business that can operate in the District.
To complete your FN-1, you need to complete the Foreign Registration Statement Form and submit the completed form in one of three ways:
Online via DLCP’s CorpOnline Portal
By Mail: Department of Licensing and Consumer Protection, Corporations Division, PO Box 712300, Philadelphia, PA 19171-2300 (yes, it’s in Philadelphia. No we don’t know why!)
In-person at the DLCP: 1100 4th St SW, Washington, DC 20024 (2nd Floor)
Within the form, there are a few terms you’ll want to know before completing the application:
Governor: List yourself (the business owner) as the authorized person/Governor
Registered Agent: You are your own registered agent for Washington, D.C.
Principle Address: This is your address in the state you formed your business
Step 5 - Complete Your Sales and Use New Business Registration (FR-500), and File for your Sales and Use Exemption
After you’ve been recognized as a business in DC, your next step is to register to sell your food product within the District. You do so by completing your FR-500, which is your sales and use new business registration. By registering, you are filing to be an approved business that sells directly to consumers. Think of farmer’s markets, food trucks, or any other events where you are selling directly to the person that is consuming your food.
Once your FR-500 registration has been processed, you need to file for your sales and use exemption (FR-164). This is for any situation where you are not selling directly to the end consumer like when you sell to a retailer or a distributor that then resells your product. In these cases, if you have your sales and use exemption, you do not need to pay sales tax. For more information and a guide on how to complete your FR-164, check out their link here.
Step 6 - Acquire Your Clean Hands Certificate
Similar to the Certificate of Good Standing, your next step is acquiring your Clean Hands Certificate from the DC government to acknowledge that you are in good standing with the District. The certification means you do not owe more than $1000 to DC, and that your food business registration paperwork has been done accurately and completely.
The application for your Clean Hands Certificate can be accessed on this DC Office of Tax and Revenue page. However, after March 31, 2020, the application will be streamlined through the MyTaxDC.com site.
Step 7 - Obtain Your Food Safety Manager License
Now that you’ve been recognized as a business in the District and they have certified that you are in good standing, it’s time to get into the more food-specific portions of licensing your food business. The first step is obtaining your Food Safety Manager’s License (FSML). Your FSML certifies that you are aware and will comply with food safety best practices and can manage teams to the same standard.
By using this link, you can register for a course and test online. Once you have completed the test and receive your ServSafe certificate saying you passed, you’ll then need to submit that certificate to the DC government to obtain your license.
Specifically, you will upload the certificate to the DC DOH Portal. Alternatively, you may bring the following items to the Food Safety and Hygiene Inspection Services Division office at 2201 Shannon Pl SE, Washington, DC 20002 (Phone: 202- 442-5955; hours are 8 a.m.- 4:30 p.m.):
Certificate of ServSafe Course
Two forms of identification
$40 check made out to "DC Treasurer"
Step 8 - File Your Food Manufacturer Application (Part One)
We’re almost there! To operate in a shared or commercial kitchen facility, every food business must have their food manufacturer application approved.
Part one of this process is filing the application via the same DC DOH Portal you uploaded your ServSafe to to get your DC CFPM Certificate. If you are manufacturing, you will need to apply for a variance review and a HACCP review as part of this application. This process can take time so get started early! Make sure to select the Shared Kitchen Application and not a new facility application!
Step 9 - Schedule and Complete Your Pre-Operational Inspection with DC Department of Health (Part Two)
Part two of your food manufacturer application, once the paperwork has been approved, is scheduling your pre-operational inspection with the Department of Health (DOH). We recommend coordinating this with the management of your shared kitchen facility so they can help facilitate and answer any facility specific questions.
During this inspection, you will sit down with the DOH inspector to verify your identity and confirm your CFPM Certificate number matches the application. If you are a manufacturer, they will also check to make sure you have a process and walk through the shared kitchen facility. The DOH inspector is checking to make sure your processes and the facility are up to local food safety code.
Step 10 - File Your Basic Business License Form
It’s finally here! The last step is obtaining your Basic Business License. As you will see, the BBL EZ-Form requires portions of each step above to complete, including the health inspection report you received from the DOH inspector during their visit. Please note that if you are in a shared manufacturing facility, you will need to submit the Certificate of Occupancy of that facility, so ask the manager of the facility for that information.
Final Thoughts
Food business requires extra licensing steps to make sure food producers are selling products that are food safe. This also means that the process can be long and challenging. To make the process as straightforward as possible, follow the steps above in the order they are presented! Each step builds off the previous one(s). Going out of order will create more work for you.
We also recognize that the fees associated with each step are difficult to follow. To assist on this front, visit the DCRA’s Corporation Division Fees page for LLCs.
