Cottage food rules
Cottage Food Stand Rules (2026): Permits and Sales Caps
Know the permit, label, and sales cap your state requires before you set up your cottage food stand.
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What to remember
- Check your state’s sales cap before you bake.
- Get the right permit or registration for your kitchen.
- Label every package with the required details.
- Know which foods are allowed and which are not.
- Keep records of what you sell and when.
Running a cottage food stand starts with knowing what your state allows. Some states cap your yearly sales, others limit where you can sell, and a few require a kitchen inspection. The rules decide what you can bake, how you label it, and where you set up your table.
What permit does a cottage food stand need?
Many states require a permit or registration before you sell. Some call it a cottage food permit, others a Class A or Class B license. The application usually asks about your kitchen, your water source, and how you will store food. Fees and forms change by state and by county, so file with the office that handles food safety where you live. You can see how the forms differ in this guide to the cottage food business request form. A permit is not a business license. It only covers the food you make at home. You may still need a general business license or a sales tax permit depending on your city and state. Ask your local clerk before you open.
A few states skip the permit and only ask you to register. Others require a kitchen inspection first. Check your county extension office or state department of health for the current form. If you sell at a market or fair, the event may ask for a copy of your permit before they let you set up. Bring a paper copy and a digital copy on your phone so you are never stuck.
What can you sell from a cottage food stand?
Cottage food laws usually cover baked goods, jams, jellies, and similar shelf stable items. They often exclude cream fillings, custards, cheesecakes, and other items that need refrigeration. Some states allow pet treats or dried mixes. The list changes often, so read your state’s approved food list before you plan your menu. This guide to what is considered a cottage food breaks down common examples. Bread, cookies, cakes, and fruit pies are usually fine. Pumpkin pie and pecan pie are often allowed because they are shelf stable.
Anything with a fresh cheese or whipped cream filling is usually off the list. Dry baking mixes, granola, and nuts are common additions. If an item needs to stay cold, it probably does not belong on your stand. Selling a food that is not on your state’s list can shut down your business and cost you fines. When in doubt, call your local health department and ask.
How do you label cottage food products?
Every package needs a label that follows state and federal rules. According to the California Department of Public Health, cottage food products must be labeled in accordance with specific state and federal labeling regulations. Your label usually needs the product name, your name and address, the ingredients, the net weight, and any allergens. Some states also require the words ‘made in a home kitchen’ or a similar statement. List ingredients in order by weight, just like a commercial package.
If you use tree nuts, wheat, milk, or eggs, say so clearly. A customer with an allergy needs to see that before they take a bite. Keep a copy of every label you use in case a health inspector asks. You can print labels at home or use a label maker. Either way, the text has to be readable and it has to stay on the package.
What are the sales limits for a cottage food stand?
Many states cap how much you can earn from your home kitchen each year. The cap might be $25,000, $50,000, or another number set by your state. Some states split sellers into tiers, where a higher tier lets you sell more but asks for more rules. Maryland, for example, sets a $50,000 cap for its cottage food businesses. Check the Maryland cottage food business registration page for how that cap works. The cap usually counts gross sales, not profit.
That means every dollar a customer pays you counts toward the limit. If you sell $4,000 a month, you will hit a $50,000 cap in a little over a year. Plan ahead so you are not forced to stop taking orders mid season. Track your gross sales, not just your profit. Keep a simple spreadsheet or use a tool that adds up your orders so you know where you stand each month.
What mistakes cost cottage food sellers money?
The biggest mistake is selling before you have the right permit. A second is baking items that are not on your state’s approved list. A third is skipping the label details because you are in a hurry. Each one can lead to a fine, a refund, or a ban from the market. Check the rules before you commit to a big order or a craft fair booth. Another costly mistake is pricing without counting your overhead.
You need to cover ingredients, your time, and the cost of running your shop. If you miss one, your margin disappears. A third mistake is ignoring renewal dates. An expired permit is the same as no permit. Set a reminder on your phone two months before your license expires so you have time to file.
For example, say one batch of granola costs you $8 in ingredients and $6 in labor. Your Brevl shop costs $20 a month. If you sell 10 bags from that batch at $6 each, you earn $60. Subtract $8 for ingredients, $6 for labor, and $2 for your share of the monthly shop cost, and you keep $44. That is your margin after all three costs.
How do you keep records and stay legal?
Keep copies of every permit, every label version, and every market contract. Save your sales records for at least a year. If a customer asks about an allergen, you want the label and the batch record ready. Good records protect you if a health inspector visits or a customer has a question. You also need to renew your permit on time.
Some states renew yearly, others every few years. Put the date on your calendar so you do not sell with an expired license. This guide to cottage food license renewal online shows how the portals work. You can find more guides like this one on the rules for home bakers page. It covers permits, labels, and the day to day choices that keep your cottage food stand legal.
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- Cottage food label rules and examples
- Kitchen requirements for cottage food licenses
- More rules for home bakers
Common questions
Do I need a permit for a cottage food stand?
Most states require a permit or registration before you sell from home. The name and the fee change by state and county. Some states only ask you to register, while others require a kitchen inspection. Check with your state department of health or your county extension office before you take your first order.
What is a sales cap?
A sales cap is the maximum amount you can earn from your home kitchen each year under cottage food rules. The number is different in every state. If you go over the cap, you usually need a commercial kitchen license. Track your gross sales each month so you know when you are getting close.
Can I sell cheesecake from a cottage food stand?
Usually no. Most cottage food laws exclude items that need refrigeration, like cheesecake, cream pies, and custards. Stick to baked goods and shelf stable items that are on your state's approved list. If you are not sure, call your local health department and ask before you bake.
What has to be on a cottage food label?
Your label needs the product name, your name and address, the ingredients, the net weight, and any allergens. Some states also require a statement that the food was made in a home kitchen. Follow the state and federal labeling rules for your area. Print your labels before you start baking so every package is covered.
How much does it cost to run a cottage food stand?
Costs include your ingredients, your time, packaging, and any shop fees. Brevl charges one flat $20 a month with no cut of your sales. Add up all three costs before you set your price. If you only count ingredients, you will likely sell at a loss once you add labor and overhead.
Sources
General information, not legal advice.