Startups Flourish After Occupational Licensing Is Abolished
Minnesota recently lifted licensing and inspection restrictions on the cottage food industry; as a result there are now over 3,000 registered cottage food bakers within the state. The exemption allows entrepreneurs who otherwise could not afford the overhead cost of renting commercial space to start their own business. However there are caveats. The exemption only applies to the preparation of shelf stable food that doesn’t require refrigeration. Cottage industry bakers cannot exceed $18,000 in annual sales to consumers, so they can only be partially self-employed. They are also still required to pay a $50 registration fee and complete a 3 hour class on food safety.