Starting a Cottage Food Business: What You Can and Can't Sell in Your State

The cottage food movement has grown significantly over the past decade, with nearly every state now having some form of law allowing home-based food producers to sell directly to consumers without the expense of a commercial kitchen license. But cottage food laws vary enormously from state to state — what's legal in Wyoming may be illegal in Rhode Island, and the sales limits range from $2,500 per year to no cap at all.

This guide covers what you need to know before you start selling food from your home kitchen.

What Is a Cottage Food Law?

A cottage food law (also called a home food processing law or homemade food act) is a state statute that exempts certain home-based food producers from the commercial food establishment licensing requirements that normally apply to food businesses. Instead of requiring a licensed commercial kitchen, cottage food laws allow producers to make and sell specific types of food from their home kitchens, subject to certain conditions.

Cottage food laws exist because state legislatures recognized that requiring full commercial licensing for a home baker selling jam at a farmers market was disproportionate to the actual public health risk involved.

What Foods Are Allowed Under Cottage Food Laws?

Almost universally, cottage food laws only permit non-potentially-hazardous foods — foods that don't require refrigeration to remain safe. These are also called non-TCS (non-Temperature Control for Safety) foods.

Commonly Permitted Products

• Baked goods — breads, cookies, cakes, muffins, pies, pastries (without cream fillings)
• Jams, jellies, and preserves (high-sugar, high-acid)
• Candy and fudge
• Dried goods — dried herbs, herb mixes, dried fruit, dried vegetables
• Roasted nuts and seeds
• Granola, trail mix, popcorn
• Honey (typically sold separately from cottage food laws as a direct farm product)
• Fermented products — some states allow vinegar-based pickles and fermented vegetables with pH verification

Commonly Prohibited Products

• Cream-filled pastries, custards, cheesecakes — require refrigeration
• Meat and poultry products — regulated separately under USDA rules
• Canned low-acid vegetables (green beans, corn, etc.) — botulism risk requires commercial processing
• Dairy-based products requiring refrigeration
• Sprouts
• Cut fresh produce

Sales Limits — How Much Can You Earn?

Most states cap annual cottage food sales to distinguish home producers from commercial operations. These limits vary dramatically:

Note: Limits change frequently as states update their laws. Always verify current limits with your state agency.

Where Can You Sell?

Cottage food laws typically restrict sales to direct-to-consumer channels. The most commonly permitted venues are:

• Farmers markets — the most common venue for cottage food sales in most states
• From your home — selling directly to customers who come to your door
• Roadside stands — on your property or at permitted roadside locations
• Community events — fairs, festivals, church events, school fundraisers
• Online with in-person delivery — many states allow online ordering if you deliver or the buyer picks up in person

What is almost universally not permitted under cottage food laws:

• Wholesale to restaurants or grocery stores
• Shipping via mail or commercial carriers (a few states are exceptions)
• Sales through third-party retail stores

Do You Need a Permit or Inspection?

This varies by state. Many states — including Idaho, Kentucky, Montana, New Hampshire, Vermont, and Wyoming — require no permit, registration, or home kitchen inspection for cottage food producers. Others require:

• Registration with the state or county health department — some states require you to register before selling, even if no inspection is required
• Home kitchen inspection — a smaller number of states require an inspector to visit your home kitchen
• Food safety training — Alabama and a few other states require cottage food producers to complete an approved food safety course

Labeling Requirements

Every state with a cottage food law requires some form of product labeling. The specific requirements vary, but you should expect to include:

• Your name and home address
• Product name
• Complete ingredient list (in descending order by weight)
• Allergen disclosure for all Big 9 allergens (milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame — added in 2023)
• Net weight or volume
• A home kitchen disclaimer — typically required language stating the food was made in an uninspected home kitchen

A typical disclaimer reads: "This product was made in a home kitchen that is not inspected by the [State] Department of [Health/Agriculture]." The exact wording is specified by your state's law.

The Wyoming Food Freedom Act — A Different Approach

Wyoming took a notably different approach with its Food Freedom Act (2015), one of the first in the country. Rather than a traditional cottage food framework, Wyoming allows direct sales of virtually any homemade food to informed end consumers — buyers who are explicitly told the food was made in an uninspected home kitchen. This includes products typically restricted in other states. No sales cap, no permit, no inspection.

Several other states have since passed similar "food freedom" legislation, including Arkansas (2021) and Missouri.

Before You Start Selling

1. Check your specific state's current law — visit our state pages for links to the governing agency in your state
2. Check your county and city rules — some counties have stricter rules than the state
3. Check your HOA or zoning — some residential zoning rules prohibit home-based businesses
4. Check your homeowner's insurance — your standard homeowner's policy may not cover business activity; a home-based business rider may be needed
5. Register with your state if required — don't skip this step; selling without required registration can result in fines