I can tell you from experience that many food entrepreneurs struggle to understand the type of legal entity best suited for their business. If this is you, don't worry because you're not alone. In fact, there are several scenarios where you may find yourself asking, "should my food business be an LLC or a corporation?" But the answer depends on your situation and the purpose behind the need for a new entity.

Here are a few examples: a few friends decide to launch a small business, or maybe an established and successful company is contemplating creating a subsidiary to expand into a new line of business, or possibly a large, foreign company is looking to enter the U.S. market. In all of theses examples, the threshold question is: should we form a corporation or an LLC? The answer depends on the needs and wants of each business as well as on unique state laws. However, both types of entities have similarities and differences that are...

Starting any business is hard, but a food business comes with some unique challenges. The type of business will determine which laws and regulations apply, but regardless you will be subject to several layers of bureaucracy and various laws and regulations. 

It is important to understand that the food industry is exposed to potential liabilities that don’t affect other industries, so conducting an assessment is a crucial part of your planning process.

Here are the most important things you should consider when launching a food business.

1.  Identify Licensing and Permitting Needs

Not all businesses will need a license or permit to operate legally, but this will depend on the type of business you’re operating.  Operating without a license or permit required by law can result in fines, penalties or even prosecution. Some businesses will require federal, state and local licenses to operate legally, while others may only need a state or local...