How to Start a Meal Prep or Ghost Kitchen Business in California

October 29, 2026

If you want to start a meal prep business in California, one decision comes before all others: where the food will be legally made. Your kitchen path controls which permits you need, how many meals you can sell, and whether you can hire staff. Settle that first, then handle the entity filing, the permits, and the costs, in that order.

This guide follows the steps California agencies use. It is informational content, not legal or tax advice. County fees vary and rules change, so confirm each figure with the agency named in the step before you commit money.

What You Need Before You Start

Gather these items before you file anything. Several take days or weeks to produce, and some depend on your county's rules.

• A kitchen path: a permitted commercial kitchen, a space in a permitted commissary or shared kitchen, a MEHKO home kitchen permit (only in a participating county), or cottage food for shelf-stable products only
• A business name checked against the Secretary of State's business search
• Articles of Organization (Form LLC-1) or Articles of Incorporation, depending on your entity type
• A California registered agent, either an individual who lives in California or a corporation with the required certificate
• A federal Employer Identification Number from the IRS
• A seller's permit application from the California Department of Tax and Fee Administration (CDTFA)
• A recipe card for every item, with cooking temperatures, cooling times, and reheating steps written out
• A floor plan of your kitchen if you pursue a commercial permit
• Food thermometers, sanitizer, test strips, and a food handler card for each worker
• A labeling and packaging plan that covers ingredients, allergens, and your business name and address

Step 1: Choose a Legal Kitchen Path

This choice matters more than the entity, the permits, or the budget, because it decides what you can sell and where you can sell it. There are three realistic paths.

Path 1: Ghost kitchen or cloud kitchen (commercial)

A ghost kitchen, also called a cloud kitchen, sells only through delivery or pickup and has no dining room. It is still a food facility under Health and Safety Code 113789, so it needs a county environmental health permit after a plan check and an inspection, the same as a restaurant. This path takes the most time and money, so get the county's plan check requirements before you sign a lease or buy equipment.

Most new operators do not build a kitchen first. The usual start is renting time in a commissary or shared kitchen that already holds a county permit. Do not assume the host's permit covers your business. Ask the county how your own operation is permitted inside that facility, including your products, your hours, and whether you sell directly to customers or to other businesses. Rental rates vary widely, so get written terms. This guide does not give rental rates.

Fees are set county by county. For reference, Los Angeles County's 2026 to 2027 schedule for a food facility with 0 to 30 seats runs $319, $719, or $1,206 a year, depending on risk level. Your county's schedule may differ.

Path 2: Home kitchen under a MEHKO permit

The Microenterprise Home Kitchen Operation (MEHKO) lets a cook sell meals from a home kitchen, but only in counties that have opted in. Your first step is to ask your county environmental health department whether it participates. Our full MEHKO guide covers the details. The core limits are:

• 30 meals a day and 90 meals a week
• $100,000 in annual sales, adjusted each year for inflation
• Food prepared, cooked, and served on the same day
• Sales made directly to consumers
• Delivery only by the cook, an employee, or a household member. Third-party delivery services are not allowed, except for customers with a disability that limits their access to the food
• One non-family full-time-equivalent employee

The same-day rule rules out the most common meal prep model. You cannot cook a week of meals on Sunday under a MEHKO, and the path does not fit wholesale or catering. If your business is built on batch cooking, this path is usually the wrong fit.

Los Angeles County began issuing MEHKO permits on November 1, 2024. The county program does not cover Pasadena, Long Beach, or Vernon. LA County charges a $597 application review fee and a $347 annual permit. The application fee is waived for up to 1,000 permittees with net revenue under $50,000 through December 31, 2026. The annual permit is subject to a subsidy, so confirm the amount you would actually pay.

Path 3: Cottage food

Cottage food covers shelf-stable products only. It cannot hold refrigerated meals, so it does not work for prepared containers that need cold storage. Use it only for products that are stable at room temperature, and check the current rules before you choose it.

Step 2: Form Your Business Entity

Register your entity with the California Secretary of State through bizfile Online at https://bizfileonline.sos.ca.gov/. California has no general state business license, so the entity filing is the first state registration you will complete.

Check and reserve your name

An LLC name must include 'limited liability company,' 'L.L.C.,' or 'LLC.' 'Limited' may be shortened to 'Ltd.' and 'company' to 'Co.' The name cannot contain 'bank,' 'trust,' 'trustee,' 'incorporated,' 'inc.,' 'corporation,' or 'corp.' Search the name at the Secretary of State's business search, then reserve it for $10 if you need time. A reservation lasts 60 days and cannot be renewed for consecutive periods.

File the Articles of Organization

File Form LLC-1 for $70. Online filings are normally processed within about 5 business days or less. Paper filings take 10 or more business days. Expedited options are available: $350 for 24-hour service, $750 for same-day service if received by 9:30 a.m., and $500 for 4-hour service, which requires drop-off and precleared filing.

Appoint a registered agent and keep a California office

Every California LLC must keep an agent for service of process. That agent can be an individual who resides in California or a corporation that holds a Corporations Code 1505 certificate. The LLC must also keep an office in California. That office does not need to be your kitchen.

Calendar your recurring filings

File the Statement of Information (Form LLC-12) for $20 within 90 days of filing your articles. After that, file it every two years during the six-month window that ends on the last day of your anniversary month. The Franchise Tax Board assesses a $250 penalty if you miss it after the Secretary of State sends a notice.

Plan for the franchise tax from year one

Every California LLC organized or registered in 2024 through 2026 owes the $800 minimum annual franchise tax from its first year. The first-year exemption covered only LLCs formed from 2021 through 2023, so an LLC formed now pays $800. An LLC whose first taxable year begins in 2027, 2028, or 2029 pays $400 in year one under Revenue and Taxation Code 17941(g)(2). Confirm that figure with the Franchise Tax Board. On top of the minimum, the LLC fee is $900 once California-source total income reaches $250,000. It rises to $2,500 at $500,000, $6,000 at $1,000,000, and $11,790 at $5,000,000.

Corporations

A corporation files Articles of Incorporation for $100 and then a Statement of Information (Form SI-550) for $25 every year, due within 90 days of filing the articles. The first-year minimum tax is waived for newly formed or qualified corporations and S corporations. A corporation still pays corporate income tax at 8.84% (10.84% for banks), so talk with a CPA before you choose between an LLC and a corporation.

Step 3: Register a Fictitious Business Name

If you sell under a name other than your LLC's legal name, file a Fictitious Business Name Statement with the county clerk-recorder in the county where your principal place of business is located. If you have no place of business in California, file in Sacramento County. File within 40 days of starting to do business under the name. Then publish the statement in a newspaper once a week for four weeks. The registration expires after five years.

The statutory fee is $10 plus $2 for each additional name or owner under Business and Professions Code 17929, but counties often charge more. Tehama County, for example, charges $31 plus $5 for each additional name. The newspaper publication fee is separate. Confirm your county's current schedule before you file. Official information is at https://www.sos.ca.gov/business-programs/business-entities/fictitious-business-names.

Step 4: Apply for Your County Health Permit

Apply through your county environmental health department, not the Secretary of State. For a commercial kitchen, the process includes a plan check of your floor plan and equipment, followed by an inspection of the finished space before the permit is issued. For a MEHKO, confirm the county participates first, then follow its application process. Ask each agency for its current checklist and processing timeline. These change, and this guide does not promise a schedule.

Step 5: Certify Your Food Handlers and Managers

Each food handler needs a food handler card within 30 days of hire. Under Health and Safety Code 113948, the employer pays for the course and for the paid time to take it. A facility that handles nonprepackaged potentially hazardous food needs one certified food safety manager under Health and Safety Code 113947.1. Ask your county how this applies to your path.

Step 6: Register With CDTFA for Sales Tax

Register for a seller's permit with the California Department of Tax and Fee Administration at https://www.cdtfa.ca.gov/ if you sell taxable goods. The seller's permit is free. The statewide base sales tax rate is 7.25%. With district taxes, city rates run from 7.25% to 11.75%. The seller's permit is a tax registration, not a business license.

Prepared meals are taxable. Meals served on or off the premises and hot prepared food are both taxable. Whether packaged cold meals sold for take-home are taxable depends on CDTFA Regulation 1603, so check with CDTFA before you set prices. If you buy ingredients for resale, ask CDTFA about a resale certificate. The resale certificate has no required form.

Step 7: Check Your City Business Tax

California has no general state business license, but most cities charge a local business tax or registration certificate. Of the state's 483 cities, 445 report revenue from one. There is no common formula, so the answer depends on your city. Counties license only regulated activities. Ask your city's business licensing office before you open, and ask whether the tax applies to a ghost kitchen and to any home-based sales you plan to make.

Step 8: Register With EDD and Plan for Payroll

If you will have employees, register with the Employment Development Department (EDD) before you hire. Payroll is a common budget gap, so confirm the state minimum wage before you set pay. Based on a secondary source, the state minimum wage is $16.90 in 2026 and $17.40 from January 1, 2027. Verify both figures before you set payroll. Some cities set higher minimums.

If you hire a contractor to build out a kitchen, the Contractors State License Board threshold is $1,000. Contractor work valued at $1,000 or more generally requires a licensed contractor, so verify the license of anyone you hire.

Step 9: Budget for Government Fees

The table lists the state and county fees covered in this guide. Rent, equipment, insurance, and ingredients are not included, because they vary widely and this guide does not estimate them.

Item	Agency	Cost	Timing or notes
LLC Articles of Organization (Form LLC-1)	Secretary of State	$70	About 5 business days online; 10 or more on paper
LLC expedited filing	Secretary of State	$350 (24-hour), $750 (same-day, received by 9:30 a.m.), $500 (4-hour, drop-off)	Optional
LLC name reservation	Secretary of State	$10	Lasts 60 days
Statement of Information, LLC (Form LLC-12)	Secretary of State	$20	Within 90 days, then every two years
Articles of Incorporation	Secretary of State	$100	Stock corporation
Statement of Information, corporation (Form SI-550)	Secretary of State	$25	Within 90 days, then every year
LLC minimum franchise tax	Franchise Tax Board	$800	Annual, from year one for LLCs organized 2024 through 2026
LLC fee	Franchise Tax Board	$900, $2,500, $6,000, or $11,790	Tiers begin at $250,000, $500,000, $1,000,000, and $5,000,000 of California-source total income
Fictitious business name	County clerk-recorder	$10 plus $2 per additional name or owner (statutory); counties often charge more	File within 40 days; newspaper publication is separate; expires after five years
Seller's permit	CDTFA	Free	Required if you sell taxable goods
Food facility, 0 to 30 seats (Los Angeles County)	Los Angeles County	$319, $719, or $1,206 a year	Depends on risk level; 2026 to 2027 schedule
MEHKO application review fee (Los Angeles County)	Los Angeles County	$597	Waived for up to 1,000 permittees with net revenue under $50,000 through December 31, 2026
MEHKO annual permit (Los Angeles County)	Los Angeles County	$347	Subject to a subsidy; confirm the amount you would pay

Tips and Common Mistakes to Avoid

• Assuming a state business license exists. California issues none, so do not pay a service that sells you one.
• Renting a commissary without confirming how your operation is permitted inside it. The host's permit may not cover your products or your sales channel.
• Using a MEHKO for weekly batch prep. The same-day rule breaks that model.
• Treating a MEHKO as a delivery business. Third-party delivery services are not allowed except for customers with a disability that limits their access to the food.
• Selling refrigerated meals under a cottage food registration. Cottage food is for shelf-stable products only.
• Missing deadlines. Food handler cards are due within 30 days of hire, fictitious business name statements within 40 days of starting, and the LLC-12 within 90 days of filing your articles.
• Forgetting the $800 minimum franchise tax. For an LLC organized in 2024 through 2026, it applies from year one.
• Planning a series LLC. California does not allow a domestic series LLC, so separate concepts need separate entities.
• Skipping the city business tax check. Ask your city before you take your first order.
• Mixing business and personal funds. Open a separate business bank account from the start, which also makes tax filing easier.

Two practical habits help. First, call the county before you sign a lease or buy equipment. Second, test your recipes, packaging, and cold-holding times in the kitchen you will actually use, not in your own home kitchen. Advising on planning is available through the California Small Business Development Center network at https://californiasbdc.org/.

Expected Results

Permits and registrations let you sell legally. They do not guarantee sales or profit. Results depend on your menu, pricing, local demand, and how consistently you deliver. Operators often spend their first months testing recipes, packaging, and delivery routes before they settle on a model, and it is reasonable to plan for that period.

Be careful with health and nutrition claims. Do not put them on labels or in marketing unless you can support them and have checked FDA labeling rules. Hedged, factual descriptions such as 'made with fresh vegetables' are safer than promises such as 'boosts immunity.'

Next Steps and Professional Advice

This article is informational content, not legal or tax advice. Before you choose an entity, a kitchen path, or a tax treatment for packaged meals, consult a California business attorney and a CPA. Start with the Secretary of State's Business Programs Division at https://www.sos.ca.gov/business-programs, then contact your county environmental health department and your city's business licensing office. Confirm every figure in this guide with the named agency before you pay.