Cottage food rules
Cottage Food Laws in South Dakota: What Home Bakers Can Sell
A plain look at what you can sell from your South Dakota kitchen, and what to check first.
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What to remember
- Baked goods sold from home can skip the food service license when they are not temperature controlled.
- South Dakota sets no dollar cap on cottage food sales.
- Home-canned foods and fresh produce sit under the same cottage umbrella, but each product has its own rules.
- The Department of Revenue has published guidance on sales tax for homemade food, so read it before you set prices.
If you have been baking for neighbors and wondering when it becomes a real business, South Dakota is one of the friendlier states to find out. The health department points sellers at its cottage laws, which allow goods to change hands without a food service license, and it asks vendors to review the requirements for each thing they plan to sell. If you want to see how South Dakota sits next to everywhere else, cottage food law requirements by state lays it out side by side.
What South Dakota law actually says
South Dakota Codified Law 34-18-35 says that, except as otherwise provided in 34-18-38, the licensure provisions of that chapter do not apply to a person selling non temperature controlled foods. In everyday words, if your bake does not need to be kept hot or cold, the license requirement steps aside. House Bill 1322 is the other piece people bring up, because it created openings for food entrepreneurs to sell certain products with minimal regulatory oversight.
There is also no dollar limit on cottage food sales in South Dakota. Some states stop you at a few thousand dollars a year. Here the ceiling is your oven, your counters, and the hours you actually have, not a number written into a statute. That matters when a holiday order lands and you are deciding whether you are allowed to say yes.
Check your product before you take orders
The South Dakota Department of Health publishes farmers market guidance for market managers and vendors. It lists common food products to help you work out which licensure and regulation applies to yours, and it was updated in 2022. Work through it with your own menu in front of you, not from memory.
Pull up the state guidance
The Department of Health farmers market guidance lists common food products and the rules that go with them. Read it on your phone before your next bake day.
Find your product on the list
Match each item you sell, not just the category. The department directs vendors to review the various laws and requirements for each product.
Call with the specific question
If your item is not clear on the list, call the South Dakota Department of Health at 605-773-4945 and describe exactly what you make and how you store it.
Read the sales tax guidance
The Department of Revenue published a newsletter spotlighting the Cottage Food Law and sales tax responsibilities for homemade food products. Read it before you quote your first price.
Write down what you were told
Keep the date, the name, and the answer with your recipes, so the next question does not send you back to the start.
Sales tax, pricing, and growing past your kitchen
Sales tax is the piece home bakers forget, because the license question gets all the attention. The Department of Revenue has already published guidance on it, so there is no reason to be caught out at tax time. Set your prices with that cost in the number from the beginning. Our cottage food laws by state map explains how to read a state’s rules quickly, and how to check your state’s cottage food laws walks you through the same steps if you ever sell across a border or move.
With no dollar cap in the way, the honest limit on your business is time. That is a good problem, but it is still a problem, and it is worth knowing what one tray of bars really costs you before you fill your week with orders that do not pay.
Try the free bake pricing calculator
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Start small, keep good notes, and confirm your product with the state before you advertise it. The rules here leave room to grow, and a few careful checks now mean you can take the big order later without second guessing yourself.
Common questions
Do I need a license to sell cookies from my home in South Dakota?
Under South Dakota Codified Law 34-18-35, the licensure provisions of that chapter do not apply to a person selling non temperature controlled foods, except as otherwise provided in 34-18-38. Cookies that do not need refrigeration generally fit that description, but confirm your specific product with the Department of Health before you sell.
Is there a limit on how much I can sell?
No. South Dakota sets no dollar limit on cottage food sales, so your growth is limited by your kitchen and your time rather than a statutory cap.
Can I sell home-canned jam and pickles?
South Dakota's cottage laws cover home-canned foods, baked goods, and fresh produce. The state health department directs vendors to review the various laws and requirements for each product, so check your specific recipe rather than assuming one answer covers the whole pantry.
Who do I call with a question about my product?
The South Dakota Department of Health takes questions about farmers market food product regulation at 605-773-4945. Have your recipe and storage method ready when you call.
Do I owe sales tax on what I sell?
The South Dakota Department of Revenue published a newsletter spotlighting the Cottage Food Law and sales tax responsibilities when selling homemade food products. Read that guidance and build the tax into your prices from the start.
Sources
General information, not legal or tax advice. Rules change and offices can differ. Confirm your product and your tax questions with the South Dakota Department of Health and the Department of Revenue before you sell.