The purpose of a fish hatchery is to raise fish from eggs to fry -- or young fish -- so they can be released into natural habitats, thus repopulating streams, lakes and oceanic bays or inlets with native fish. Alternatively, some hatcheries raise fish to maturation and provide them commercially to sport fishermen, food retailers or manufacturers of fish products. California has a number of endangered or nearly endangered native fish species, and combined with its miles of coastline and inland rivers, provides a solid market for fish hatcheries. Starting a fish hatchery business in California, however, requires a significant amount of time and startup capital, as well as full compliance with the Department of Fish and Game's regulations.
Instructions
1. Study aquaculture, or fish farming, either through independent self-instruction or by enrolling in a college course. Gain a thorough knowledge and understanding of the many options available for creating ponds or raceways that will support the growth and health of your eggs, methods for achieving fertilization, care and feeding of fish and the proper way to maintain a clean, healthful environment for the eggs and fry. Additionally, review and familiarize yourself with the California Department of Fish and Game, or DFG, laws regarding fish hatcheries to ensure compliance.
2. Research California native fish species and determine which species your fish hatchery will raise, and for what purpose, taking into consideration California laws that prohibit farming of certain species, and laws restricting importing certain plant and fish species into the state. Additionally, evaluate the market when choosing the fish you will hatch and raise.
3. Create a business and operational plan that outlines your chosen species, purpose, methods of raising and caring for the fish, and how you will manage the day-to-day operations involved in fish farming. Include a list of the equipment you will acquire, as well as necessary startup funds.
4. Select a location for your hatchery. Often, hatcheries use low, rectangular raceways that can be built anywhere. However, you must still have a viable water source and means for cleaning or maintaining a healthy fish environment. Leasing use of state lands or water sources requires you to submit an application to the Department of Fish and Game, but you should contact your local municipality or wastewater authority to gain permission to use city, county or other privately owned water sources. Additionally, note that for permitting purposes and for the overall health of your fish, testing of your water may be required, which can sometimes take several weeks.
5. Begin implementing your operational plan by building your fish hatching tanks, installing drainage and/or oxygen systems, introducing helpful plants and algae into the water and generally preparing your hatchery for the fish eggs and fry. Contact your local zoning authorities to obtain the appropriate permits for things like digging ponds, cementing drainage ducts or building structures to house hatching tanks. Necessary permits will vary depending on city or county regulations and the construction needs of your hatchery.
6. File a fictitious business name with the county clerk's office where your hatchery will be located. California doesn't have a general business license, but you may need one from your local county or city, so check with the clerk's office. If your business is anything other than a sole proprietorship or general partnership, you must also file articles to establish your business entity with the California secretary of state.
7. Apply for a federal Employer Identification Number, or EIN, from the IRS and use this number to register your business with the California Franchise Tax Board for business income and sales taxes, the California Employment Development Department for employer withholding, unemployment and workers' compensation, and your local county and city governments for applicable taxes. Each of these agencies will require you to fill out an application asking basic questions about your fish hatchery business, and issue you the appropriate permits based on your answers.
8. Complete and submit an "Aquaculture Registration Application" to the DFG, along with the appropriate registration fee. On your application, you must specify the types of fish you will be dealing with and all of the aquaculture activities your business will engage in. Additionally, you must submit a drawing of your cultivation area, including diversion of water sources to your facility, drainage systems and any other pertinent information.
9. Prepare for an inspection by DFG officials. A visual review of your fish hatchery will be conducted, and you may be asked general questions about your aquaculture methods and California regulations to determine your competency and compliance. Within 40 days, you will be notified of the status of your application. If approved, you will be issued a permit to operate, and placed on the DFG list of registered aquaculturists. If denied, you will be given the reasons and provided with information about correcting deficiencies or re-applying.
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