How to Start a Cottage Food Business
You make something people ask to buy. Turning that into a real business selling homemade food is more doable than most people think, but every state has its own rulebook. Here is the order to do things in so you start on solid footing.
1. Read your state's cottage food law first
Selling homemade food is governed state by state under what is usually called a cottage food law. It sets what you can make, how much you can sell in a year, where you can sell it, and what your label has to say. Two neighboring states can have very different rules, so start with yours before you buy a single jar.
Look up your state's program and read the current requirements. The wording and the sales limits change over time, so trust the state's own page over a forum thread.
2. Know which foods you are allowed to sell
Cottage food laws almost always limit you to foods that are shelf-stable, meaning they do not need refrigeration to stay safe. Baked goods, jams and jellies, candies, dry mixes, granola, roasted coffee, and honey are common yes answers. Anything that has to stay cold, like cream pies, cheesecake, or custard, is usually a no.
- Usually allowed: cookies, breads, cakes with shelf-stable frosting, jam, jelly, candy, fudge, granola, spice blends, honey, dried herbs
- Usually not allowed: cream or custard pies, cheesecake, anything with meat, fresh salsa, low-acid canned goods, most refrigerated items
If your product sits on the line, such as a frosting that might need refrigeration, confirm it qualifies before you build a business around it.
3. Register or get a permit if your state requires one
Some states let you start with no paperwork. Others want a registration, a permit, a home-kitchen inspection, or a food handler's card. A few cap how much you can earn before you have to move to a commercial kitchen. Find out which bucket your state is in so you are not caught short after you have already sold.
4. Label every package correctly
This is where most new sellers get tripped up. Even when you are exempt from a full Nutrition Facts panel, your label still has to carry the product name, the net weight, a full ingredient list, an allergen statement, your business name and address, and your state's home-kitchen disclaimer.
Nutripane builds that whole label from your recipe, including the allergen line and your state's disclaimer, so you can print it and get back to cooking.
5. Decide where you will sell
Most cottage food laws let you sell directly to the person eating the food: farmers markets, roadside stands, home pickup, and often online within your own state. Selling to stores for resale, shipping across state lines, or listing on a marketplace like Amazon usually pushes you out of cottage food rules and into full food labeling, including the Nutrition Facts panel. Plan your sales channels with that line in mind.
Questions
Do I need a license to sell homemade food?
It depends on your state. Some states let you start with no license at all, while others require a registration, a permit, a home-kitchen inspection, or a food handler's card. Check your state's cottage food program for the current requirement before you sell.
How much money can I make with a cottage food business?
Many states cap annual cottage food sales, often somewhere in the tens of thousands of dollars, and the exact number varies widely. Past the cap you usually have to move into a licensed commercial kitchen. Confirm your state's limit before you scale up.
Keep reading
This page is general information, not legal advice. Cottage food and food labeling rules vary by state and change over time. Confirm current requirements with your state's cottage food program and the FDA before you sell. See your state's rules or how to label your product.