Cottage food rules
Cottage Food Law and Wholesale: What to Check First
Know what your state allows before you take your first wholesale order.
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What to remember
- Cottage food sales are built around selling directly to consumers, not to a business that resells.
- State guides spell out where you can sell and when a commercial kitchen is required.
- Seventeen jurisdictions require no state registration for cottage food operations, so check yours before you assume.
- Cottage food resources are educational summaries, not legal advice. Confirm with the agency that handles it.
You baked a few dozen cinnamon rolls for a neighbor. She took them to the cafe where she works, and now the owner wants a standing weekly order. It feels like the obvious next step, and it is also the moment where a home baking business most often trips over the rules, because you are no longer handing a box to someone who will eat it. Start with the basics in cottage food law and then read the section below before you promise anything.
Selling direct versus selling to a shop
The cottage food laws described in the state guides are written around individuals making low risk foods at home and selling them directly to consumers. A wholesale order goes to a business that resells, which is a different sale with a different set of questions. Those guides cover where you can sell and when a commercial kitchen is required, and those two answers decide whether a wholesale order is open to you at all. Some bakers find their state allows more than they expected. Others find the opposite. The limits that show up most often are collected in cottage food law restrictions.
What to check before you say yes
Find your state's rule on where you can sell
Go to the official guidance for your state first. The National Agricultural Law Center compiles the statutes and regulations for each state that has a cottage food or home based food production law.
Ask the buyer what they will do with the food
A shop, cafe, or market stall that sells your bakes on to someone else is not the same as a person buying a box for their family. Ask plainly, and get the answer plainly.
Check whether a commercial kitchen is required
State guides say when a commercial kitchen is required. If a wholesale order crosses that line, you need to know before you take a deposit or buy the packaging.
Look at your annual sales cap
State guides cover annual sales caps. A standing weekly order adds up quickly, so work out the yearly total before you commit to a schedule.
Check labeling, registration, and permits
State guidance covers licensing, labeling requirements, and permissible homemade foods. See cottage food law requirements and cottage food law registration for what usually comes up.
Put the order in writing
Write down what you will supply, how often, at what price, and who handles the labels. Keep that note with your records for the year.
Wholesale pricing deserves its own slow look. A case of scones sold at your market price can leave you with very little once you count the extra packaging, the delivery run, and the lower margin on a bigger batch. Work out the true cost of the batch before you quote a number, and remember that a standing order is a weekly commitment, not a one time favor.
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Check the rules again when they change
Cottage food laws get updated. A rule you read two years ago may not be the rule today, and a wholesale answer can change along with it. Check the date on anything you read, and go back to your state agency whenever an order gets big enough to matter.
These resources are educational summaries, not legal advice, and they advise verifying the rules with the relevant agency. That is the right habit to build. One email or phone call to the agency that handles cottage food in your state is cheap compared with unwinding an order you were never allowed to fill.
Common questions
Can I sell my bakes wholesale under cottage food law?
That depends on your state. The cottage food laws described in the state guides are built around selling directly to consumers, and the guides cover where you can sell and when a commercial kitchen is required. Check your state's rule before you agree to supply a business that resells.
Does a wholesale order count toward my sales cap?
State guides cover annual sales caps, so check how your state counts sales. A standing weekly order adds up fast, and you want the yearly total in front of you before you commit.
Do I need a permit to sell to a shop?
Before selling homemade food, a cottage food operator may need permits, labels, tax accounts, zoning checks, sales rules, and local approvals. What applies to you depends on your state and your town, so confirm it with the agency that handles it.
Do all states require registration?
No. Seventeen jurisdictions require no state registration for cottage food operations. That does not mean there are no rules, so check your own state before you assume either way.
Where can I compare states?
Cottage food laws for all 50 states plus DC can be compared on registration, inspection, training, the annual sales cap, the allowed foods model, and online selling.
Sources
This is general information, not legal or tax advice. Cottage food rules differ by state and change over time. Confirm what applies to you with your state agency before you sell.