Handbook / Licenses and permits

Cottage food laws: selling homemade food legally from your kitchen

Selling bread, cookies or jam from your home kitchen can be a low-cost way to start a food business. Cottage food laws make this possible in many states by relaxing commercial kitchen requirements for certain lower-risk foods. The details differ a great deal from state to state, so the first job is to read your own state's rules carefully.

What cottage food laws do

Food businesses normally need licensed, inspected commercial facilities. Larger food manufacturers can also fall under federal food safety rules; for example, FDA's preventive controls rule requires covered food facilities to have a food safety plan. Cottage food laws are state laws that carve out a path for small home-based producers of lower-risk foods, usually selling directly to consumers, to operate without a commercial kitchen.

The SBA notes that licensing and permit requirements depend on your business activity and location. For home food businesses, that means your state's cottage food law plus any local rules.

Which foods are usually allowed

Most states focus on foods that are unlikely to support harmful bacteria without refrigeration. Commonly allowed:

• breads, rolls and many baked goods
• cookies, brownies and cakes without perishable fillings
• jams and jellies made to approved methods
• candies and fudge
• dry mixes, granola and some snacks

Commonly not allowed under cottage food rules:

• meat, poultry and seafood
• dairy-based products such as cheesecakes or cream fillings
• foods that need refrigeration for safety
• low-acid canned foods
• many beverages

Always check your state's specific list. Some states list allowed foods; others list prohibited ones.

Where you can sell

States differ on sales channels:

• direct to consumers at home, farmers markets or events
• online orders with local pickup or delivery
• sales through shops, cafes or restaurants
• shipping, including across state lines

Many states restrict or prohibit wholesale sales and shipping. Read these rules before planning an online shop.

Registration, training and inspection

Depending on your state, you may need to:

• register or obtain a cottage food permit
• complete a food safety course
• allow an inspection, or none at all
• pay a fee and renew annually

Labeling

Labels are central to most cottage food laws. Common requirements include:

• a statement that the food was made in a home kitchen that is not inspected by the health department
• product name
• your name and address, or a registration number
• ingredients in order of weight
• allergen information
• net weight or quantity

Prepare a label template that meets your state's exact wording.

Sales limits

Some states cap annual gross sales for cottage food operations. If you outgrow the cap or want to sell restricted products, you will need a licensed commercial or shared kitchen.

Other permissions

Cottage food rules are only part of the picture:

• a general business license from your city or county
• a home occupation permit where zoning requires it; see home occupation permit
• HOA or lease rules; see HOA rules for home businesses
• a sales tax permit if your products are taxable; see sales tax permit
• event or market permits

Insurance

The SBA describes product liability insurance as protecting against financial loss from a defective product that causes injury. Markets and events sometimes require proof of liability insurance.

Food safety habits

• keep pets out of the kitchen during production
• clean and sanitise surfaces and equipment
• store ingredients properly
• label allergens clearly
• keep production records with batch dates

When to move to a commercial kitchen

Consider renting commercial or shared kitchen space when you want to sell restricted foods, sell wholesale, ship widely or exceed sales caps.

Steps to get started

1. Find your state's cottage food rules, usually through the state agriculture or health department.
2. Check that your products are on the allowed list.
3. Complete any required registration, training or permit.
4. Prepare compliant labels.
5. Check local zoning and any HOA or lease rules.
6. Ask whether you need a sales tax permit.
7. Keep records of recipes, batches and sales.

Review the rules every year, since states update allowed foods and limits.

Keep batch records

Note the date, recipe and ingredients for each batch. If a customer asks about allergens or a problem, you can answer quickly.

Read your state's cottage food law first: check allowed foods, sales channels, registration, labeling and sales caps, then add local licenses, HOA checks, sales tax and insurance before you sell.