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Guide

How to start a cottage food business: 7 steps, state rules

Start a cottage food business in seven steps: check your state law, pick foods, register, train, label, price, and sell. With an eight-state rules table.

Updated 2026-09-23. This page is not legal advice.

Learning how to start a cottage food business allows you to sell homemade food legally. You can start this business from your home kitchen without renting a commercial space. A cottage food is food safe at room temperature, which you make at home and sell under state law. Every state writes its own rules for home food producers. Follow seven basic steps to launch your home food operation safely and legally.

Step 1: read your state’s cottage food law

State governments pass laws that control home food businesses. Every state writes its own rules. Rules change over time. You must check your state page and the statute before you begin. Read the official state text to learn local rules for sales, permits, and food types. You can look up cottage food laws by state to start your research. Understanding local laws protects your home business from fines or shut-down orders. Some rules apply across an entire state. Other rules depend on your local health department or county offices. Always review the newest rules from your state authority. State laws establish what foods you can sell and where you can sell them. You must stay updated because state legislatures update cottage food laws frequently.

Step 2: pick foods the law allows

State rules limit which foods you can make in a home kitchen. Allowed foods in these states include baked goods such as breads and cookies. Most states allow baked goods, candy, jams, and dry mixes that need no refrigeration. These items stay safe at room temperature without cold storage. Most states ban or limit foods that need time and temperature control for safety. Check your state list before buying ingredients or equipment for a new recipe. Selecting allowed foods keeps your customers safe and keeps your operation compliant with state law. Stick to shelf-stable recipes when you launch your kitchen operations.

Step 3: register or get a permit if your state asks

Some states ask home cooks to complete paperwork before selling food. Requirements vary across state borders. Some states need nothing from the business owner. Some states require a basic registration form. Other states require a formal permit with an inspection of your home kitchen. Review cottage food license rules to see what your state requires. Local health departments often manage registrations and permits. You might pay a small fee when you submit your application. Keep copies of your approval paperwork in your home kitchen at all times. Certain states require kitchen inspections to check for clean surfaces and working sinks. Always display your permit or registration if your local authority requires it.

Step 4: take the food safety course

Several states require you to complete a food safety training course. This training teaches proper handwashing, sanitation, and food handling practices. For example, California requires a food processor course within three months of starting. Texas requires a food handler card for cottage food operators. Illinois requires the person who makes or packs food to be a certified food protection manager. Washington requires a food worker card for each person who makes food in the kitchen. Taking these courses ensures that home cooks handle raw ingredients safely. State-approved providers offer most food safety courses online. Save your certificates of completion in case inspectors ask to see them.

Step 5: make a label that meets the state rule

Packaging labels must inform buyers about your product and home kitchen. Most state labels ask for your operation name and address. They ask for the product name and ingredients listed by weight. They ask for known food allergens. They require net weight in some states. They require a disclosure that you made the food in a home kitchen. Read our guide on cottage food label requirements for full details. You can use a cottage food label template to design clear labels for your products. Place the label on every container or product package before sale. Accurate ingredient lists help protect consumers who have severe food allergies.

Step 6: set your price

Setting correct prices helps cover your home business expenses. Calculate your ingredient costs and packaging supplies for every batch. Factor in the value of your labor time and overhead expenses like utilities. Read our guide on how to price baked goods to understand pricing options. Use a recipe cost calculator to figure out exact batch expenses. Knowing your unit cost helps you set a fair price that covers all production costs. Track ingredient prices regularly because ingredient supply costs change. Include packaging materials like bags, boxes, and printed labels in your final calculations.

Step 7: know where you can sell and how much

State laws decide where you can sell your homemade products. Some states allow sales directly to consumers at farmers markets, community events, or home delivery. Other states allow direct sales online or wholesale sales to retail stores. Sales channels and sales caps differ by state. A sales cap is the maximum money you can earn each year under cottage food rules. If you earn more than the state sales cap, you must get a commercial food license. Track every sale in a ledger to ensure you remain under your state cap. Always review allowable sales venues in your state before selling in new locations.

Cottage food rules in eight states

State rules vary across the country. Every state writes its own rules. Rules change over time, so check your state page and statute. Below is a breakdown of rules for eight states.

State License or registration Sales cap
California Class A registration or Class B permit from county environmental health department $75,000 for Class A, $150,000 for Class B
Texas No permit for most operations; DSHS requires registration for time and temperature controlled foods Not stated on the DSHS page; check Chapter 437
Florida No license, permit, or inspection $250,000 in gross annual sales
Illinois Register each year with local health department, fee up to $50 No sales cap
Michigan No license, permit, or inspection $50,000 in gross annual sales until October 1, 2026, or $75,000 if operation sells products at $250 or more per unit
Pennsylvania Register with PDA as Limited Food Establishment, pass on-site inspection, pay $35 fee No sales cap in PDA page
Washington WSDA Cottage Food Permit before any sale, $355 application fee, lasts two years, home kitchen inspection $35,000 in gross sales per year
Georgia No state license and no state fee since July 1, 2025 No sales cap

What is the easiest food to sell from home?

Baked goods such as cookies and bread are on the allowed list in every state in the table. These non-perishable items do not require refrigeration to remain safe for consumers. Most states ban or limit foods that need time and temperature control for safety. Because every state allows baked goods, they are the easiest food category to sell under home food laws. Always review your local state law to ensure your exact recipes meet state requirements.

Frequently asked questions

Do I need a permit to sell cottage food in Texas?

Most Texas cottage food operations do not need a permit. DSHS requires registration if you sell time and temperature controlled foods, plus a food handler card.

Do I need a license to sell cottage food in Florida?

No. Florida does not require a license, permit, or home inspection for a cottage food business. You must keep records of your gross sales.

What is the easiest food to sell from home?

Baked goods such as cookies and bread are easiest to sell because every state in our guide allows them.

How much can I sell under a cottage food law?

Sales limits depend on your state. Caps range from $35,000 per year in Washington to $250,000 per year in Florida, while states like Georgia have no cap.