Cottage Food Laws Explained: What Home Bakers Need to Know Before Selling Baked Goods
Thinking about selling baked goods from home at a market, bake sale, or popup? Learn what cottage food laws usually cover, which foods are allowed, labeling rules, sales limits, and how to check your state's requirements.
Selling cookies, bread, or cupcakes from your home kitchen is one of the most popular ways to start a small food business. Before your first sale, though, it's important to understand cottage food laws, the rules that decide what homemade foods you can sell, where you can sell them, and how they must be labeled.
This article is general information, not legal advice. Cottage food laws differ a lot from state to state and can change. Always check your state and county rules before selling.
What are cottage food laws?
Cottage food laws let people make and sell certain lower-risk foods from a home kitchen without a full commercial kitchen license. Most U.S. states have some form of cottage food law, but the details vary widely.
They usually answer five questions:
- Which foods can you sell?
- Where and how can you sell them?
- How much can you sell in a year?
- How must products be labeled?
- Do you need to register, take a class, or get a permit?
Foods that are often allowed
Cottage food laws typically allow shelf-stable foods that don't need refrigeration, such as:
- Breads, rolls, and many baked goods
- Cookies, brownies, and bars
- Cakes and cupcakes without perishable fillings or frostings
- Candy, fudge, and brittle
- Jams and jellies (often with specific recipe rules)
- Granola, dried mixes, and some snacks
Foods that are often not allowed
These usually need a commercial kitchen and a health permit:
- Foods that need refrigeration, like cream pies, cheesecakes, and custards
- Cream cheese frostings and whipped cream fillings
- Meat, seafood, and many dairy products
- Canned low-acid foods
- Drinks that need refrigeration (rules vary)
If you're unsure about an item, ask your county health department before selling it.
Where you can sell homemade food
Depending on your state, cottage food sellers may be allowed to sell:
- Directly to customers at farmers markets, popups, and events
- From home or by pickup
- Sometimes online or by delivery within the state
Many states don't allow cottage food to be sold wholesale to stores or restaurants. Check what "direct sales" means in your state.
Labeling requirements
Labels are one of the most common cottage food rules. They often require:
- Your business name and address (or a registration number)
- The product name
- An ingredient list in order of weight
- Allergen information (like wheat, milk, eggs, nuts, soy)
- A statement such as "Made in a home kitchen that is not inspected by the health department" (exact wording varies)
- Net weight or quantity
Clear allergen labels protect your customers and your business.
Sales limits, registration, and training
- Sales caps: some states limit how much you can earn per year under cottage food rules.
- Registration or permit: some states require you to register or get a permit; others don't.
- Food handler training: a food safety course may be required, and it's a good idea either way.
- Local rules: cities and counties may add zoning or business license requirements.
Food safety tips for home bakers
- Wash hands and clean surfaces before baking
- Keep pets out of the kitchen while you work
- Package items in clean, sealed bags or boxes
- Keep a list of ingredients and suppliers for each recipe
- Store products away from heat and sun at your booth
Pricing your baked goods
Once you know what you can sell, price it for profit. Count ingredients, packaging, labels, and your time. A good starting point is at least 2 to 3 times your cost per item. Our guide to pricing products for profit walks through it.
Selling baked goods at your next popup
When you're ready to sell:
- Add your products with photos in Lemoney so shoppers can see them on the map
- Take cards with Tap to Pay on iPhone
- Use the farmers market vendor checklist to prepare your booth
Selling with your kids? Many families run bake sales together. See our lemonade stand guide for tips that work for any kid-run food stand.
