I sell Peanut Brittle Candy as a side business. Seems like a simple enough idea. Right? My peanut brittle is wonderful and the product cooks at 300 degrees.
Now, in order to sell a product like this to stores in Colorado you need a Wholesale Food License and a Sales Tax License and a Business License. Having a wholesale food license gives you the right to sell to business across the country. It will also give you the right to do events in different states with just the wholesale license.
We have made it difficult to get all this. The process is quite hard.
First, in Colorado your product has to be made in a registered wholesale food manufacturin and/or storage facility. and it has to be approved by the Colorado Department of Public Health and Environment. So how does the average person, with no experience find such a facility? The first thing is to find a local business that has a registered kitchen with the Colorado Department of Public Health. Then talk to the owner and explain to them what you want to do and make some kind of deal to give them a cut of your income. This actually is the easiest part of the whole thing.
The easiest way to get started with this process is just to call the Division of Environmental Health and Sustainability at 303-692-3620. They are very helpful and will tell you what to do. They cannot help you with sales tax however.
Doing Events as a vendor in the State of Colorado
I hate to say this, it depends on the county. Some counties will take your wholesale license and need nothing else. Other counties have a mound of paperwork for you to jump through. Call the public health department of the county in which you want to do the event. Sometimes getting to the right department can be tricky, you need to be persistent and tell them exactly what you want to do.
To Get a Single Special Event License (Colorado) –– For a temporary location other than your regular business location and valid for one event only where there are three or more vendors. This is a two-year license which is free to all standard sales tax license holders. To apply for this use the Special Event Application (DR 0589) form or use our Special Events Fill-in Forms service.
To Get a Multiple Special Event License — If you plan on attending more than one special event, it is recommended you apply for the multiple event license. This is a two-year license which is free to all standard sales tax license holders. It covers a two-year period when there are three or more vendors at the event.To apply for this use the Special Event Application (DR 0589) form or use our Special Events Fill-in Forms service.
NOW that being all taken care of there is more Labeling
Every food product must of course be labeled. In the case of my Peanut Brittle – like the following.
Here is an example of my label, for our small wreaths
Contains: Peanuts, Sugar, corn syrup, butter, baking soda
Allergy Suffers: this product contains peanuts and may cause allergic reaction
Weight: 13 .5 ounces
Please note that you have to have a allergy suffers statement if your product or products contain any major allergy products.
Then Sales Tax
The Wholesale license gives you the right to sell to businesses across the country. However if you sell it in Colorado you must pay sales tax on the products sold in the state. Merchants you sell products to are responsible for collecting sales tax. However if you want to sell at say craft events or the like – you will need a Colorado Sales Tax License
(303) 238-SERV (7378) 8am to 4:30pm ONLY, Now if you are brave you can take the above url and try to figure this out by yourself.
All of the above is why exactly more people do not sell or make food products. They have made it unbelievably difficult.