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Updated 05/25/06
Government Regulations
Every business is surrounded by a myriad of regulations, and there is no simple way to identify them. The challenge is that each government entity has slightly different regulations and requirements. One approach for a business is to start by identifying what city, county or other jurisdiction they fall under. This is really a geographic question. So when in doubt call your city/county planning department for boundary identification. A great start for learning all you can is by going to the website for Washington State Licensing information that follows and working through the checklist for starting a business.
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The safety of the food your business produces is a number one concern for the public and government agencies. The following links outline the government regulations that have been put in place that you need to be aware of.
Food Processing in Washington State
State
regulations for food processing are outlined in the Washington Food
Processing Act (Chapter 69.07 RCW). Food Processing is defined as,
"the handling or processing of any food in any manner of preparation for
sale for human consumption." All businesses selling processed foods
direct to the consumer at farmers markets, on-farm, or any other location
must obtain a Food Processors license from the WSDA Food Safety Program.
WSDA Food Processors License:
Farms/processors will
need to obtain a Food Processors License from WSDA Food Safety if:
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Your business is processing and selling packaged foods,
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Your farm business processes low-acid canned foods (i.e. canned fish, vegetables, retorted pouches of fish, vegetables, etc.)
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You are producing a processed food and your farm business is not licensed by the county health department as a food service establishment.
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You are selling your processed food outside your county.
Food Processors License Handbook
http://www.agr.wa.gov/FoodAnimal/FoodProcessors/LicenseHandbook.aspx
Commercial Kitchen
If you wish to process your
farm produce but do not have the facilities or capital to invest in
infrastructure, you may find a kitchen that you can use. Some restaurants,
community centers, and Grange halls, for instance, allow the use of their
facilities for food processing. "Commercial" or "community" kitchens may be
available in your area.
Commercial Kitchen required to be Licensed for In
County Use
If you are selling your products within the county, direct
to the consumer on farm or at farmers markets, the commercial kitchen may be
licensed by your county health department. Call your local county health
department for locations of existing commercial kitchens.
Outside of County Sales Requires WSDA Approval
If you are selling your processed food products outside the county via any
commerce channels (e.g., farmers markets, Internet, hotels, restaurants) or
are processing a cheese product or low-acid canned foods, the commercial
kitchen must meet WSDA requirements for food processing.
Businesses Require WSDA Food Processor License
Each business that processes food in that commercial kitchen must have a
WSDA Food Processor License. Businesses selling processed foods should also
have adequate insurance.
Washington State University Small Farms Connection
http://smallfarms.wsu.edu/
Food Safety - FDA Publication “ Good Agricultural
Practices"
http://vm.cfsan.fda.gov/~dms/prodguid.html
Food Labeling Guide
http://www.cfsan.fda.gov/~dms/flg-5-1.html
Matrix of rules & regulations for Food Processing
www.agr.wa.gov/foodanimal/foodprocessors/default.aspx
Good Agricultural Practices Program
http://www.gaps.cornell.edu/
Unprocessed fruits and vegetables can
be at risk for microbiological contamination during production and harvest.
The USDA, FDA and CDC developed the Good Agricultural Practices.
These guidelines are the standard for safe harvesting and handling
procedures.
Direct Marketing Regulations
http://smallfarms.wsu.edu/marketing/generalInfo.html#general
Safe Handling of Farm Produce
http://smallfarms.wsu.edu/food_and_you_foodsafety.php
"The
Green Book" Handbook of Regulations for Direct Farm Marketing
/Marketing/SmallFarm/greenbook.aspx
This publication
contains information about the regulatory landscape governing the sales of
farm products in Washington State. It is a comprehensive guide to
direct marketing strategies and contains an extensive resource section of
organizations and relevant publications.
Food Safety Resource
http://smallfarms.wsu.edu/marketing/onfarmprocessing.html#Safety
Hazard Analysis and Critical Control Points Program Guidelines
http://smallfarms.wsu.edu/marketing/onfarmprocessing.html#H
Disaster Preparedness for Livestock
http://king.wsu.edu/livestock/documents/DistPrepLivestock.pdf
This
webpage is a simple PDF file that provides a list of supplies, a
Dietary Chart, and on the second page a very good outline for
developing a your own Farm Disaster Preparedness plan.
Guide to Minimize
Microbial Food Safety Hazards for Fresh Fruits and Vegetables
http://vm.cfsan.fda.gov/~dms/prodguid.html
A Washington State master license is required for all companies who gross over $12,000 dollars annually. You can obtain a Master License on line at (same listing as above Licensing permits. Cities cannot prohibit, nor require an additional vendor's license to sell farm produce direct to consumers. The sale of these products is subject to B&O taxes, and you will need to be registered through the Master License process to be able to properly file the B&O taxes retail and wholesale activities generate even if you generate less than $12,000 annually.
The fee for the Master Application is $15. Specialty licenses may require additional fees.
Master License Ensures a Unique Name for Your Business
Your Master License from the State of Washington, serves to register you as
a legal entity. Your company name can be your complete name, or a different
name. Licensing calls anything but your own name a "Fictitious" name.
It allows you to register your trade name and be certain no one else is
using the same company name. It serves as the registration point to
identify you to the Departments of Labor and Industry, Department of
Revenue, and Secretary of States office by assigning you a Uniform Business
Identification number.
Naming Options on Master License
You can apply for a Master License under your own name, (i.e. "Jane Doe") or
register a business or trade name, (i.e. "Jane Doe's Apple Orchards",) on
the Master License application.
Name Search is Available Through Department of Licensing
You can
find out if a trade name you want to use is already registered
to
another business by requesting a search from the Master License Service at
the Department of Licensing. Fees for searches vary for phone or mail
requests and depend on the number of names searched.
Farmers Markets May Require You to
Have a Master License
A farmers market may be covered by one Master License that allows the market
to operate a consignment booth among other activities. Many farmers markets,
however, require farmer vendors as well as craft vendors and other vendors
of non-agricultural products to have their own Master Licenses.
Comply with Local Building Codes
Lastly, you will need to comply with
local building codes for any building improvements or new construction.
Contact your local building department to get a copy of their building code.
The Washington Licensing Information
http://www.dol.wa.gov
The WALI website provides contact
information for proper licensing with state and local governments based on
your business activity.
State Business Licensing
http://www.dol.wa.gov/businesses.htm
you must possess a valid
State business license prior to issuance of a City business license.
The State of
Washington makes obtaining a business license simple with the "one stop"
registration process. The Unified Business Identifier (UBI) Program allows
prospective business owners to register the business by filling out the
Master Application. After completing the application, they receive the UBI
number that is used by several state agencies.
Washington State Business License Fee Sheet
http://www.dol.wa.gov/forms/700031.pdf
Application For A Food Processing Plant License
/FoodAnimal/FoodProcessors/LicenseHandbook.aspx
Licensing, Facilities, and Labeling
http://smallfarms.wsu.edu/marketing/onfarmprocessing.html#L
The following sites explain the specific rules and regulations that govern operations. You will also find links for applications and further detail in each site.
Laws and Rules
http://www.access.wa.gov/business/laws.aspx
This website provides access
to Washington State laws, WACS, RCWS, and regulations in all areas
pertaining to business.
Doing Business With the State
http://www.access.wa.gov/business/state.aspx
Washington State Laws & Regulations
/LawsRules/
Food Processors License Handbook
http://www.agr.wa.gov/FoodAnimal/FoodProcessors/LicenseHandbook.aspx
Matrix of rules & regulations for Food Processing
www.agr.wa.gov/foodanimal/foodprocessors/default.aspx
Businesses that sell their products at retail, such as at farmers markets or roadside stands, must obtain a tax number (Unified Business Identifier, or UBI) from the Washington State Department of Revenue. Farms must file their tax returns, according to requirements, even if the total amount of gross sales does not necessitate a tax. The UBI number is assigned to your business when you apply for a Master Business License. You are not required to register with the Department of Revenue, or collect sales tax, or pay any other tax or fee, if your gross annual income is less than $12,000.
Two types of taxes are applicable to direct sales vendors: Retail Sales Tax and Business & Occupation (B&O) Tax. Both of these are handled on the same form once a UBI is obtained.
B & O Tax
http://dor.wa.gov/content/taxes/busoccupation/default.aspx
Farms conducting retail sales are subject to B&O taxes.
For sales to restaurants, groceries, or other wholesale venues, B&O taxes do
not apply. The basic B&O tax rate for retail sales is .00471 of gross
sales. Smaller farm
businesses may find that the state provides a tax credit for sales under a
certain amount. These amounts are dependent on when and how often you
file (monthly, quarterly, etc.).
Retail Sales Tax
http://dor.wa.gov/content/taxes/sales/default.aspx
Generally,
produce, groceries, and other unprepared food products are retail sales tax
exempt. Taxes are applied to sales of meals and prepared food by the seller
regardless of where it is served or delivered to the buyer, with some
specific exemptions. Pet food and supplies, seeds, and live
plants including edible plants, are considered non-food products and subject
to retail sales tax. Seeds and edible plants, however, are considered exempt
from retail sales tax if purchased with food stamps.
Employer's Identification Number
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
Any business that hires employees must obtain a federal
identification number, called an Employer's Identification Number (EIN), by
filing Form SS-4 with the Internal Revenue Service (IRS). An EIN is a number
that the IRS uses to identify taxpayers that are required to file various
business tax returns. The federal identification number assigned to your
business will be registered with the IRS, the Social Security
Administration, and the Department of Labor.
Internal
Revenue Service
http://www.irs.gov/
Taxes
http://www.access.wa.gov/business/taxes.aspx
Business Tax Overview
http://dor.wa.gov/Docs/Pubs/ExciseTax/FilTaxReturn/BusTaxOver.pdf
Open Space Taxation Act
The Open Space Taxation Act, enacted
in 1970, allows property owners to have their open space, farm and
agricultural, and timberlands valued at their current use rather than their
highest and best use. The Act states that it is in the best interest of the
State to maintain, preserve, conserve, and otherwise continue in existence
adequate open space lands for the production of food, fiber, and forest
crops and to assure the use and enjoyment of natural resources and scenic
beauty for the economic and social well-being of the State and its citizens.
Open Space Taxation Act Resources
http://dor.wa.gov/Docs/Pubs/Prop_Tax/OpenSpace.pdf
http://www.co.whatcom.wa.us/assessor/taxguides/openspace/openspace.jsp
http://www.co.grant.wa.us/assessor/CurrentUse.htm
Small Business Tax Basics
http://www.allbusiness.com/human-resources/compensation-payroll/465-1.html
Taxes are one of the most important issues facing small businesses. And like
a company's profits, its annual tax bill will in part reflect the owner's
skills and knowledge. Business owners need to be sure that they are meeting
all of their responsibilities to the tax authorities -- and also seizing
every legitimate opportunity to reduce their taxes. This Website does a
good job giving the big picture of business taxes.
Washington State Department of Revenue Agriculture Tax Guide
http://dor.wa.gov/content/taxes/industry/Agriculture/default.aspx
This tax guide was written to help farmers
understand their tax liability in the state of Washington. For additional
information or answers to any questions about Washington excise taxes.
A Step-by-Step Guide to Setting Up a Payroll System
http://www.allbusiness.com/accounting-reporting/corporate-taxes/801-1.html
The key to staying on top of your payroll is
setting up a good system that complies with all the applicable state and
federal laws. To get started, use this step-by-step approach to setting up a
simple payroll system.
Additional Tax Resources
Tax Incentives to Reduce Agricultural Burning to Change (Issued June
29, 2005)
Pesticides and the Hazardous Substance Tax (Issued November 13, 2002)
Dairy Nutrient Management Sales/Use Tax Exemption (Issued March 12,
2002)
Update - Sales and Use Tax Exemption for Animal Pharmaceuticals sold to
Farmers or Veterinarians (Issued June 12, 2002)
The Tax Application for Tree and/or Stump Removal from Existing Orchards (Issued
August 6, 2000)
Sales and Use Tax Exemption to Farmers and Veterinarians for Animal
Pharmaceuticals (Issued August 1, 2001)
Farmers - Implementation Plan for New Tax Exemptions and Assistance for
Farmers (Issued July 27, 2001)
Farmers - Sample Letter to Revenue to Apply for Dairy Nutrient Sales and Use
Tax Exemption (Issued July 27, 2001)
Farmworker Drinking Water Special Notice (Issued May 2, 2000)
Sales and Use Tax Exemption for Farm Worker Housing Revision of Notice
Issued March 20, 1996 (Issued April 12, 1996)
Taxability of Selling Harvested Mushrooms and Other Forest Products (Issued
July 1, 1994)
Fruit and Vegetable Processors Tax Exemption (Issued June 13, 2005)
Consumer Protection Information
http://access.wa.gov/
Department of Labor and Industries'
Construction Compliance
http://www.lni.wa.gov/TradesLicensing/Contractors/default.asp
offers consumer information. Contractors must show that they are
insured and bonded as part of the registration requirements. If you
plan
on hiring a contractor, plumber or electrician, check L&I's
on-line database first!
Department of Ecology
http://www.ecy.wa.gov/permit.html
Source of Environmental Permit
Information and Assistance.
Office of Regulatory Assistance
http://www.ora.wa.gov
State office that seeks to improve citizens' and businesses' interactions with agencies and to increase understanding of government
purposes and operations.
Copyright © 2009 WSDAHome
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