An array of disparate laws govern businesses. In regard to businesses in Montgomery County MD, County, State, and Federal governments have laws, regulations, and taxes that can apply to it.
I am not a lawyer. Some of what’s written here could be wrong. Take it with a grain of salt.
For those who are interested, then, here are some of the legalities involved in running farmersmarket.pizza LLC.
farmersmarket.pizza LLC is a company that is incorporated in Maryland. The name of the company is the name of the company website plus LLC.
The LLC stands for Limited Liability Corporation. In particular, the company is an SMLLC, single member LLC. Under the law the owner is somewhat protected from damages done by the company under certain circumscribed circumstances.
An LLC protects the people who own the company from being sued for something the company does. But if an owner of, or a worker at, the company is negligent himself, the LLC does not necessarily protect the negligent person from being sued.
You can check on the status of the company at the maryland.gov website egov section. Enter FARMERSMARKET.PIZZA in the search box, or alternatively, select Department ID and enter W20504130 in the search box. Then click on the company name to get a status report.
An LLC as just noted does not protect an owner or worker from being sued if they are negligent. Therefore the owner carries FLIP insurance and recommends that all vendors get FLIP insurance. Furthermore, the market may take out event insurance to insure the market as a whole.
(3) Legal representation
The owner is represented by attorneys. One lawyer specializes in criminal law. He defends the owner and the company against criminal accusations. The Farm-to-Consumer Legal Defense Fund (FTCLDF) is a law firm with a number of lawyers and deals with issues relating to the laws regarding producing, preparing, and selling food. And example of how the FTCLDF works is included in the Notes section below.
(4) Food laws
I am indebted to Kenneth Welch for much of the following. Here is his contact info for those seeking more information.
Environmental Health Manager, Licensure & Regulatory Services, Department of Health & Human Services
255 Rockville Pike, Suite 100
Rockville, MD 20850
It is legal to make some types of food out of a home kitchen. This link explains that.
Making and selling allowed food out of a home kitchen does not need a license. The food may also be sold their food at a farmers market, but will need licenses to sell there. More on the licenses in (5) below.
Some food which cannot legally be made out of the home may be made at a farmers market or at a County approved kitchen. A County approved kitchen is basically a kitchen that meets certain guidelines set by the health department. A County approved kitchen can be a commercial kitchen; or it can be a kitchen in a non-profit. It cannot be a residential kitchen. Always speak to the government every step along the way. For example, making yogurt and cheese is not allowed in even a County approved kitchen without some State regulations coming into play.
Union Kitchen is a shared commercial kitchen space that rents out “pods” — small kitchen areas — to owners for preparing food. There is also shared equipment and storage space. Union Kitchen is ideal for larger operations.
Thus, it is legal to make bread at home and sell it at a farmers marker. It is illegal to make a cheese pizza at home and sell it. Cheese pizzas that are sold at the market must be made at the market and/or at an approved kitchen.
Farmers markets don’t have to be licensed in MoCo. This is based on speaking to Jeremy Criss. Here is Mr. Criss’ contact info if anyone seeks more information on this.
Agricultural Marketing Professional (AMP)
Jeremy Criss, Director
Montgomery County MD Office of Agriculture
18410 Muncaster Road
However, each vendor at the market requires two licenses: a farmers market license and a vendor license, according to Kenneth Welch.
In order for an LLC to offer the owner protection he should not treat the business as an extension of himself.
Therefore at farmersmarket.pizza LLC we do whatever we can to ensure that the LLC is independent of, and a separate entity from, the owner. The owner owns the company. The owner runs the company. The owner works for the company. But the owner and the company have separate bank accounts. The company accounting is separate from the owner’s financial accounting.
An exception is when it comes to filing taxes. An SMLLC owner may elect to file taxes with the business added on using a Schedule C which is actually part of the owner’s filing. This does not constitute a legal intermingling however. The business finances and the owner’s finances remain separate.
The market goes to great length to be transparent. Any lack of clarity is due to the owner muddling through all the bureaucratic rules.
To the extent it doesn’t harm the interests of the company, information about farmersmarket.pizza LLC will be posted and updated on this website.
The question arises: who would want to sue the company or otherwise use legal means to impede the company?
Sone examples are:
– A customer who buys food at the market and claims they were damaged by eating it, say, by contracting food poisoning.
– A local brick-and-mortar store that feels they are losing business to the farmers market and that the market is acting unfairly by skirting laws that the store has to obey that add onerous costs to the store’s operation. Such a store may try to get the market shut down on the basis of a legal technicality.
– A government official that feels the market is violating the law. Here is a case like that. In brief, a small farm was selling mushrooms legally. But the local health department apparently didn’t know the law and tried to stop the farm from selling mushrooms. The FTCLDF stepped in and showed the health department the error of their ways.
In summary, anyone wading into the food business has to gird themselves for battle. Over a period of more than a hundred years, there has been a push in America to sanitize, raise hygiene in, and eliminate potential for illness in food production. The upshot of this has been that the associated costs of making food on a small scale has skyrocketed. It’s virtually impossible to break into the food business in Maryland without risking a lot from the get-go. It means a constant struggle and low profits.
Rockhill Farm in MD started a dairy and I think the approval process took over a year. Someone in DC started a cheese making company at their wine and cheese restaurant, buying a top of the line cheesemaking machine and they even built a cheese cave and they were bringing in raw milk. And then their rent went up and they went out of business.
Successful larger businesses and the government officials who watch over them sometimes consider small-scale producers as interlopers. This is not personal. Men like Jeremy Criss and Kenneth Welch have encouraged me to move forward. Yet the laws they are entrusted with enforcing necessarily limit how much I can do.
So the market has a secondary goal beyond the primary mission of feeding the community. The hope is that we can build a grassroots coalition to change the law without sacrificing health standards. Our motto is that we are baking a political statement.