Sid, welcome to the forum. Up here, the Tilapia grower that sells for consumption sells whole, live fish. Once a knife is put to the fish the set of rules change in a big way.
Yes, state laws vary from state to state. Around where I live, farmer's markets have some relaxed rules but, I want to stay in full compliance with state law and sell to the more profitable venue's. If a restaurant wants whole live fish, or whole fish on ice, that is an easier option for me but as volume increases, the need to partially prepare them increases.
The cost (increased hand labor & state compliance issues) will be weighed against the profitability and fish volume to help ensure I have a viable business plan that has a high probability of success.
