About Us

Frequently Asked Questions

Starting a food business can be a lot of work, but we've got your back. If you need help navigating the process, please check out our exhaustive list of frequent questions below. If you don't see your question here, please reach out at info@entrepreneurspace.org.

Business Formation

Why do I need a legal entity?

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A legal entity is required by New York State to identify all the businesses in its jurisdiction. Businesses that are caught operating illegally are fined and can have their businesses halted.

What are my choices for a legal entity?

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We suggest investigating either a Limited Liability Company (LLC) or a Corporation (Inc.). While there are other choices available, we recommend that food businesses look into these two because they provide legal protection for your personal assets. For further clarification on the differences between an LLC and Inc., feel free to search online, work with one of our business counselors for free, or seek an attorney/accountant.

What is Publication of the LLC?

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Publication of the LLC refers to the requirement of registering an LLC in NYS where you publish your LLC formation in two newspapers for six weeks. The reason for this is to provide formal notification that you have registered a business in this specific name. To complete this process, you can reach out to your county clerk’s office or search for registered agents online. Corporations have no publication requirement.

What is the difference between a corporation and an S-corp?

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A corporation is a legal entity that is recognized by NYS, meaning that you are legally registered to do business here.

An S-corp (short for S-corporation) is a special tax status that you can elect for your existing corporation. An S-corp status has its own unique tax benefits, but to elect your business as such, you need to register a business legally first. For more information, you can speak with an accountant.

How do I register my business?

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Free business registration assistance is available from QEDC, our parent organization. You can learn more about their business support services here.

You may also work with an attorney or another third party registration service.

Can I register in Delaware or another state and still do business in NYS?

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If the Delaware entity is doing business in New York, it has to:

Register with the Corporations Division
Go through the publication process (corporations have no publication requirement)
Register with the NYS Dept of Taxation & Finance

Any foreign entity–LLC, corporation, or partnership that’s doing business in New York must do the same.

What is Sales Tax Authority?

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The Certificate of Authority gives you the right to collect tax on your taxable sales and to issue and accept most New York State sales tax exemption certificates. Generally, the seller collects the tax from the purchaser and remits it to New York State.

You must register with the Tax Department at least 20 days before you begin business. New York State will then send you a Certificate of Authority which must be available at all times. You can check to see if your product is taxable by visiting the NYS Department of Taxation and Finance website.

There is no filing fee associated with this certificate. Even if your product is nontaxable, you must apply for this.

Where Do I Get a Sales Tax Certificate?

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One of our no-cost business counselors who specializes in registering a business can help you. Use this link to book a free appointment.

You can also apply for the certificate yourself here.

Insurance

What insurance do I need?

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Business Owners’ Policy (BOP) which covers you and your business.

All manufactured products must have a Product Liability Policy which covers mishaps that occur during the manufacturing process.

Worker’s Compensation and Disability is a requirement for any business bringing in staff who is not an owner. This includes paid and unpaid staff (volunteers, interns, family, friends, etc).

For our incubator, we recommend that you apply for this insurance AFTER your application has been approved.

Where can I get affordable insurance?

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Below is a list of brokers we have worked with. These brokers are third party and have no financial affiliation with us. You can go to your own broker as well.

Susan Combs, Combs and Co. Scombs@CombsAndCo.com 646-736-3737
Bob Bleistein, SB insurance Group BobB@ClassicCoverage.com 631-422-8585
Fran or Denise Frayman, JFA Insurance Sales@JFAinsurance.com 718-767-4040
Jessica Doskocz Marshall Sterling JDoskocz@marshallsterling.com 518-587-1342 Ext. 1014

Licensing

What license do I need?

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This depends on your product and how you sell it. Please do not apply for any license until you have been approved to be a client of our kitchen, and we will complete this together.

You will fall under the NYC Department of Health if you sell direct-to-consumer for immediate consumption (caterer, restaurant, food markets, etc.).

You would fall under the NYS Department of Agriculture and Markets if the greater portion of your revenue is from wholesale, internet-based, or shipped products.

All food businesses must be registered with the FDA after licensing.

What are my license options at The Entrepreneur Space?

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DOH and 20C license

What is an FDA License?

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This is not an actual license. The FDA requires you to register the products you are producing and your production site. You can register with the FDA here.

Can I have more than one production facility?

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Yes, you can have more than one production facility, however, you would need to apply for a separate license for each facility.

What is a Food Protection Certificate?

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NYC Department of Health and Mental Hygiene mandates at least one person onsite at a food establishment to be certified as a Food Protection Manager. Food establishments must have at least one certified Food Protection Manager during production hours. Business owners are encouraged to have all of their employees to educate themselves on best food handling practices to prevent food borne illnesses.

You can apply for a certificate here.

Kitchens

What products may not be manufactured at The Entrepreneur Space?

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Any frozen dessert products sold wholesale. You can sell directly to the consumer at markets
Any meat products NOT sold direct to the consumer for immediate consumption
Certified kosher products
Certified gluten free (with qualifications)
Certified organic (with qualifications)
Products containing CBD or THC
Products containing alcohol, where the alcohol weighs more than 0.5% of your product’s total volume
One-time-use only, i.e., clients that need to use kitchen for a single occasion. Our contracts have a one-year term.
Ghost Kitchen model: we cannot accommodate clients requiring a ghost kitchen model

Why are frozen desserts not possible at The Entrepreneur Space?

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New York State Agriculture and Markets oversees the manufacture of all frozen desserts (ice cream, frozen juices, etc.), and requires that they must be produced in a dairy-approved kitchen owned by the manufacturer.

Can I have alcohol in my product?

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Yes, but if the amount of alcohol exceeds more than 0.5% of your total product’s volume, the product cannot be made in our kitchen. Your product must be made in a distillery that has additional rules and regulations from the New York State Liquor Authority (SLA).

Can I have CBD or THC in my product?

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Not yet, however legislation regarding licensing for CBD & THC is still being hashed out. This information is subject to change, please check back.

What is an USDA facility?

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It is a facility inspected by the U.S. Department of Agriculture, which is responsible for ensuring that the nation’s commercial supply of meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. If you plan on selling meat; poultry; game wholesale (selling to a restaurant or third party) you must manufacture at a USDA facility.

The Entrepreneur Space is not a USDA facility.

Jarred and Bottled Products

Who needs a scheduled process review?

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With very few exceptions, if you are making a product that is packaged in a jar or container (i.e., sauces, marinades, juices, hummus), you will be required to have a "scheduled process review" to ensure food safety. A scheduled process is your recipe and manufacturing procedure, which has been written by you and approved by a recognized process authority.

Where can I get a scheduled process review?

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There are many places to get a scheduled process review. Here is one facility.

Who needs to take the acidified product course?

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If you are making a product that contains acid and/or is fermented, such as a hot sauce or vinegar, you need to take the acidified product course.

Where do I find the course?

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Courses are given around the country, with different dates and pricing. yYou can find a course that works for you by searching “acidified product course."

Marketing

Do I need a nutritional facts panel?

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Not yet. You are not legally required to have this panel on your label until you have more than $50,000 of annual food sales. For complete information, you can review the FDA ruling here.

Why do you require a pricing sheet for my products?

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We want to make sure that you are able to make money. We ask that you take a single recipe with all of the costs associated with the item including all of the ingredients, the label, cap, and bottle, multiply that by three for wholesale pricing and then double that price for retail pricing.

How do I compare my product to others when I am the only manufacturer of this product?

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Find 5 products in your product category. The products do not have to be exactly like yours but one that someone might buy if they could not find your product. List where you found it, how it is packaged, the size/quantity in the package, department in the store, price, and what marketing terms are used to describe the product. This will help you determine what makes your product different and let you know what pricing is warranted for your category.

Why do you need to know how I package my products?

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Some products have additional packaging requirements by their relevant licensing agencies. We want to understand your desired packaging so we can discuss it with the licensing agencies.

Are there specific labeling requirements I need to follow?

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Yes, all packaged goods must contain certain information. The nutritional facts panel is not required in the beginning. Before printing anything. Please contact us and we can send you a PDF outline of approved labeling requirements.

Operations

How do security deposits work?

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Refundable security deposits are $1,000 for most clients. High-volume clients may be subject to a larger security deposit at management's discretion.

You receive your deposit back when you are ready to leave The Entrepreneur Space, assuming that you have fulfilled all the requirements of the contract and have no outstanding balance.

What do I need to wear in the kitchen?

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Appropriate dress is required for working in the kitchen. This includes proper footwear (no open-toe shoes and/or sandals, no flip flops) that will protect you from heavy or sharp objects falling on your foot (crocs and/or clogs are a good choice).

Your hair must be covered at all times – either with a hat that allows you to tuck your hair completely underneath the cap, or a hairnet. We supply you with hairnets if required. Men with beards will be asked to wear a hairnet stretched from ear-to-ear. Men who do not have hair are also required to put on a hairnet.

What do I need to bring with me to work in the kitchen?

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Gloves, saran wrap, tin foil, containers, knives, ingredients, special equipment, small wares, and rags. Locked bins if you have product in shared spaces.

Who can work with me in the kitchen?

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Anyone over the age of 18 can work with you in the kitchen. Please remember anyone who works for you (paid or unpaid) needs to be under your workman’s compensation and disability policy.

It is preferred if all staff have a food handlers’ certificate that’s great, but we only require the owner and whoever is the lead in the kitchen to have the certificate.

All kitchens can comfortably fit up to 8 people each during production.

Will there be availability for me to produce in the kitchen?

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We always at least 20% open shift availability to give us flexibility to accept new clients and accommodate your changing needs – which means we'll be there for you when that big order comes in.

Can I bring in my own equipment?

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Yes, at the discretion of management. Equipment must meet electrical specifications and other regulations.

Will somebody be able to help me use all this big equipment?

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Yes, we have a Culinary Assistant on duty at all times while you are in the kitchen. They will be available to teach you how to use our equipment, whether it is a mixer, an oven, or a grinder. You will never be alone in our kitchens while you work your shift.

How do I book time in the kitchen?

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Once you become a client, you will be given access to our online booking process.

How is kitchen production time arranged?

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We rent by the shift only. Kitchen shift time ranges between 6.5 hours to 8 hours. We do not do “half shifts” or split them with other clients. More details are available on the Facility Information page.

Can I store my supplies on site when I am done cooking?

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We have space available in our storage areas, refrigerators, and freezers. Storage price is based on the amount of space available and will be determined at contract signing.

Is parking available while we cook?

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Yes. One parking spot is available to each client that works in their kitchen shift. For additional cars, limited street parking is available. Carpooling or public transportation is advised.

Is there a place for my coat and bag?

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Yes, there is a coat rack in our hallway just before you enter the kitchen. Health department rules do not allow purses, backpacks, shopping bags, umbrellas, etc. from being brought into your kitchen station. There are also daily lockers available for your use. Bring your own locks.

Do I have to be in the kitchen when I order my supplies to be delivered?

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You do not have to be present on the day that your supplies are delivered. Plan on having your supplies delivered the day before your shift. One of our Culinary Assistants will accept your supplies and store them in the proper locations – cold, frozen, or dry labelled with your name. There is a $5 charge for this service which includes 12 hours of storage. Your company name must be on the delivery bill of lading. Deliveries without your company name will be refused.

What happens if I run out of time while in the kitchen?

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Please try to avoid this as the next client may be patiently waiting to get into the kitchen to work the next shift. During your shift, the Culinary Assistants will be monitoring kitchen operations to make sure that you will be able to finish your production on time. One hour before your shift is over, a Culinary Assistant will check in with you to make sure whatever needs to be done can be finished on time.

Is it okay to snack or drink something while I am working at my station?

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Health department regulations do not allow you to eat or drink at your station while you are working. You are welcome to use the breakroom at any point for eating, drinking, or resting.

Can I hire the Culinary Assistant to work additional hours in excess of the allotted 2 hours?

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Not at this time. Please determine with staff at the beginning of each shift what you would like the Culinary Assistants to help with during their 2 hours of support. The Culinary Assistants have a great deal of experience and will be happy to share tips to facilitate your production, train you on equipment, prepare ingredients, or even clean up dishes.

Book a tour

Your Entrepreneur Space journey starts with a visit. Book your free tour and counseling session today – we look forward to seeing you in in the kitchen.