How do I open a micro-enterprise home kitchen operation (MEHKO)?

Your business plan communicates what your business does, your vision for the future, and the steps you will take to reach those objectives. Generally, the business plan should include:

1. An executive summary
2. A marketing plan
3. An operations plan
4. The proposed organizational structure
5. Financial projections

You have probably heard the terms sole proprietorship, general partnership, limited partnership, and type C or S corporation. The determination to form a company under a particular structure has much to do with the business activity, location, and organization.

The legal structure of the business will dictate many of the entity's operational functions and tax liability, entrepreneurs are encouraged to seek legal advice when considering these choices.

For more information, see our page on Business Structure.

Register your business correctly with the California Secretary of State (SOS). This should be done after you determine the most appropriate operating structure for your business and have determined its name. Sole proprietors do not need to register, but corporations, limited liability company, and partnerships must file with the SOS. 

You may also need to register with the Employment Development Department (EDD). An employer is required to file a Registration Form within 15 days after paying more than $100 wages to one or more employees

As a business owner, you are required to pay state and federal taxes on your business every year.

For federal taxes, you will need to apply for an Employer Identification Number (EIN).

For state taxes, you will need file with the California State Tax Franchise Board. 

The California Department of Tax and Fee Administration has a helpful guide on taxes for mobile food vendors. 

California requires that you obtain a  seller's permit if you are selling tangible, taxable goods (like food and clothing). You can apply for a Seller's permit through the California Department of Tax and Fee Administration (CDTFA). 

You may also be interested in getting a Resale certificate through the CDTFA. A California resale certificate lets you buy goods tax-free if you’re planning to resell them, rather than use them personally—just show it to your supplier at the time of purchase! This is limited to items you will not collect sales tax on, such as napkins or to-go boxes.

If your new entity will conduct business under a name that does not contain the surname of any and all owners, or is a corporation that will do business under a different name than is registered with the State, you will need to file a Fictitious Business Name Statement with the County of Sonoma Clerk-Recorder-Assessor’s Office. This application must be filed within 40 days of the business start date.

Every employer in California is required to have workers' compensation insurance, even if you only have one employee. Workers' comp insurance provides medical care, disability benefits, supplemental job displacement benefits, and death benefits. Don't be afraid to shop around for an insurance carrier that best meets your needs. 

If an employee files a claim, the Division of Workers' Compensation can help all parties understand their rights and responsibilities.

You will need a Food Safety Manager Certification within 60 days of opening your doors. In order to receive your certificate, you must pass a test. Most certifying agencies offer classes, but these classes are not required.

Alcoholic beverage licenses are issued and regulated by the California Department of Alcoholic Beverage Control (ABC).

Unfortunately, mobile food trucks are not allowed to apply for a permanent liquor license. That said, there are some specialty liquor licenses your business may be eligible for, such as: 

• 58 - Caterer's Permit: allows the sale and service of alcohol at events away from the primary business location
• 99 - On-Sale General for Special Use: allows the sale and service of alcohol for a specific event
• 68 - Portable Bar License: allows those with a permanent license to sell beer, wine, and distilled spirits from portable bars

 Applying for a new (or "original") license usually takes 90 days. Delays are common, so try to submit your application early. You are required to have a Seller's permit (issued by the California Department of Tax and Fee Administration) prior to applying for your liquor license.

If your home’s water supply comes through a private well water system, you may need to apply for a Public Water System permit from the State Water Resources Control Board’s Division of Drinking Water.

This permit does not make your private well water system a public entity, but it does ensure the water from your property is safe and healthy for your consumers.

Be sure to contact your local planning and building department to ensure a Micro-Enterprise Home Kitchen Operation (MEHKO) is allowed at your home address.

Micro-enterprise home kitchen operations (MEHKOs) can only be operated in your primary residence. Other location requirements for MEHKOs include:

• Owner approval if the residence is rented/leased
• No operations in a second home or vacation home
• No operations in a motor home
• No auxiliary kitchens or outdoor signage

If you lease or rent your property, you will need to fill out a Sonoma County Rental Notification form. This form will be provided during the application process.

If you are located in an incorporated city, you may need to apply for a Home Operation permit.

Find a list of local zoning authorities here!

If you live in unincorporated Sonoma County, you do not need a Home Operations permit, but must abide by Section 26-88-121 of the County Code.

MEHKO operations may see in an increase in wastewater once operations are underway. Depending on what you are selling, you may also increase your disposal of sugars, fats, oils, and grease that can cause your septic system to fail. The septic tank requirements are as follows:

1. Provide a record showing the septic system type.
   1. Restrictions: cesspools are prohibited, nonstandard system systems must provide two monitoring and maintenance records and adhere to the terms of the operational permit for gallons per day.
2. Provide a site plan showing the location of the home, the septic system (tank and dispersal field), and the water well.
3. The septic system must be functioning and cannot have any obvious failures. 
   1. Obvious failures: wastewater surfacing, wastewater backing up into the home, or slow draining sinks, showers, or bathtubs.

You can file a public records request or check with the Well and Septic Division at Permit Sonoma to determine what type of septic tank you have and where it is located.

2550 Ventura Avenue

Santa Rosa, CA 95403

PermitSonoma-Records@sonoma-county.org or (707) 565-1900

For your MEHKO to remain in compliance with local and state laws, you must abide by these operational standards:

• Food must be prepared, cooked, and served on the same day within the residence's kitchen
• Sales are limited to 30 meals per day or 90 meals per week, with gross annual sales capped at $100,000
• Meals can be consumed on-site, picked up, or delivered by the operator or a registered intermediary. Third-party delivery services, catering, and resale are prohibited
• No more than one full-time employee (not including family members or household members)
• A properly charged and maintained 10 BC-rated fire extinguishers, which indicates it can put out an electrical or fuel accelerated fire under 10 square feet, and a first aid kit must be accessible within the kitchen

You must also abide by these health and safety requirements, as outlined by Environmental Health:

• No food preparation, packaging, or handling may occur concurrently with domestic activities
• Only service animals are allowed in the kitchen and dining areas during food service and preparation
• Equipment and utensils must be smooth, easily cleanable, and sanitized before each use
• MEHKOs are subject to annual inspections and must comply with all relevant Health and Safety Code requirements

For a full list of restrictions, please visit Environmental Health's MEHKO page.

As part of your application to Environmental Health, you will need to include the MEHKO Standard Operating Procedures form. This form outlines the operating requirements by the State and helps you understand how to comply with MEHKO regulations.

The Standard Operating Procedures form helps you understand operating requirements, including:

• Hours of operation
• General requirements (as outlined above)
• Food Handler health and hygiene standards
• Food protection standards
• Utensil and dishware washing standards
• Food service/delivery
• Water source
• Liquid waste/refuse
• Safety
• Trainings and licenses
• Menu of food and beverages

Now that you have your business operations set up and understand State and local regulations, you are ready to apply for a Retail Food Facility permit.

You will need to submit these documents to Environmental Health for a complete application:

1. Retail Food Facility permit application
2. MEHKO Standard Operating Procedures form
3. Septic system documentation (if applicable)

Your Retail Food Facility permit is maintained through yearly inspections by Environmental Health.

You must also maintain your Food Safety Manager’s Certification, which expires every 5 years and Food Handler Cards, which expires every 3 years.