Cottage food rules
Home Bakery License in California: What You Need
Know which California cottage food class you are and what to file before you sell a single bake.
On this page
What to remember
- Cottage food operations in California are split into Class A and Class B.
- Class A may only make direct sales, and may do so in any county in the state.
- Class B may sell direct and indirect, and needs a permit from the local enforcement agency.
- Class B gross sales cannot go over $150,000 a year.
- Everything you bake must be on the Approved Cottage Food List and labeled to state and federal rules.
If you bake from your own kitchen and sell what you make, the paperwork question comes up fast. The good news is that the path is short once you know which class you are. The confusing part is that the state and your county each play a different role, so it helps to see the whole picture in one place before you start calling offices. There is a closer look at the online side of this in what to know about the California home bakery license online.
Class A or Class B: pick before you apply
Class A is the smaller of the two. A Class A cottage food operation may only engage in direct sale of cottage food, and it may do that in any county within California. Direct sale means the bake goes straight from you to the person buying it.
Class B is the larger one. A Class B operation may engage in both direct sale and indirect sale, which opens up the ways you can get your bakes to customers. In exchange, a Class B operation shall not be open for business unless it obtains a permit from the local enforcement agency, and it shall not have more than $150,000 in verifiable gross annual sales.
What you can bake, and what goes on the label
Not every recipe is allowed. Cottage food products permitted in the CFO program are non-potentially hazardous and must comply with the Approved Cottage Food List. The California Department of Public Health does not permit or register cottage food operations, but it does maintain that list, so it is the page to read before you plan a menu around a family favorite.
Labels are not optional either. Cottage food products are required to be labeled in accordance with specific state and federal labeling regulations. Getting the wording right from your very first sale saves you reprinting stickers later.
Where the sales can happen
Class A stays direct only, anywhere in the state. Class B adds indirect sale on top of direct. A Class B operator may also sell outside the county where the operation is located, but only if a permit is granted by that outside county, so a market across a county line needs a phone call first.
As orders start coming in, a simple way to take them and get paid helps more than a paper notebook. A fair roundup of home bakery apps walks through what fits a one person kitchen, and if you are weighing monthly costs, what you actually pay each month for Bakesy is a useful comparison.
Getting set up, step by step
Read the Approved Cottage Food List
Check that the bakes you plan to sell are on it. Products must be non-potentially hazardous and must comply with the list.
Decide between Class A and Class B
Choose Class A if you will only sell direct. Choose Class B if you want direct and indirect sales, and if you can work within the $150,000 gross annual sales cap.
Apply to your local enforcement agency
For Class B, the permit comes from the local enforcement agency, and you cannot be open for business without it. Ask them what they want to see from your kitchen.
Sort your labels before you sell
Cottage food products must be labeled in accordance with state and federal labeling regulations. Get the wording checked early.
Keep a running record of sales
Track your gross sales so you always know how close you are to the $150,000 Class B limit, and keep those records somewhere you can find them.
Try the free bake pricing calculator
Free, no signup.
Once the permit is sorted, the rest is baking and bookkeeping. Take the class decision slowly, keep your sales numbers honest, and confirm anything unclear with your local enforcement agency before you add a new product to the menu.
Common questions
Do I get my license from the state of California?
No. The California Department of Public Health does not permit or register cottage food operations. It maintains the Approved Cottage Food List. For a Class B operation, the permit comes from the local enforcement agency.
How much can a Class B home bakery sell in a year?
A Class B cottage food operation shall not have more than $150,000 in verifiable gross annual sales.
Can I sell at a market in a different county?
A Class A operation may make direct sales in any county within California. A Class B operator may sell outside the county where the operation is located if a permit is granted by that outside county.
Can I sell my bakes through someone else, like a shop or a reseller?
That is an indirect sale. Only a Class B cottage food operation may engage in both direct sale and indirect sale. Class A is limited to direct sale.
Do I have to label my packaging?
Yes. Cottage food products are required to be labeled in accordance with specific state and federal labeling regulations.
Sources
This is general information, not legal advice. Cottage food rules are enforced locally and can change, so confirm the current requirements with your local enforcement agency before you sell.