Getting started
Home Based Bakery Business: Cottage Kitchen Rules (2026)
What a cottage kitchen allows, what it costs, and the numbers to check before you sell.
On this page
What to remember
- Check your state cottage food law. It decides what you can bake and where you can sell.
- A cottage kitchen is your home kitchen, not a commercial kitchen.
- Check your label rules before you print stickers.
- Brevl costs $20 a month and takes 0% of your sales.
Your home based bakery business cottage kitchen can be legal and profitable, but the rules change by state. Start with the getting started guide to see the whole path. Then check your own state before you buy pans or print menus.
What is a cottage kitchen and what can you sell from it?
A cottage kitchen is your home kitchen. Under cottage food laws, you can sell certain baked goods without a commercial kitchen. Your state law will say what you can sell. It may limit you to shelf stable items. It may allow more. Your state decides.
The rules cover three things: what you can bake, where you can sell, and what label you need. You do not need to guess. Your state agriculture department or health department publishes the rules. Call them if the website is confusing.
The name for this setup changes by state. The idea is the same. You sell from your home kitchen under a set of limits. Check your state’s list before you plan your menu.
Direct sales means you sell to the person who eats the food. Your state law will say where you can sell. It may allow farmers markets, roadside stands, or pickup at your home. Check your state’s list.
The three numbers to check before you commit
Before you spend money, check three numbers. They decide if your cottage kitchen can make money. Write them down so you can compare your plan to reality.
Your state sales limit
Find your state’s annual sales cap. Your state may have one. Write it down. If you plan to sell more than the cap, check what license you need.
Your permit or registration cost
Check if your state requires a registration or permit. Find the fee. It might be free or a small fee. Check your state website. Add this to your start up costs.
Your Brevl cost
Brevl is one flat $20 a month. No cut of your sales. That is your shop cost. It does not change when you sell more.
Those three numbers set your floor. If your sales limit is low, you need a higher price per item. If your permit costs a lot, you need to sell more to cover it. If your shop cost is fixed, you can plan around it. For a step by step path, see how to start a cottage bakery from home.
Brevl has a 14 day free trial. You can set up your shop and see if it works for you before you pay.
A worked example with ingredients, labor, and overhead
For example, say you sell 20 boxes a month at $25 each. That is $500 in sales. Your ingredients and packaging cost $150. Your labor at $15 an hour for 10 hours is $150. Your Brevl shop is $20. Your margin is $180.
That margin is what you keep after ingredients, labor, and overhead. If the margin is too small, raise the price or lower the cost. Do not skip your own pay. Your time is a real cost.
You can run the same math for any item. Write down the ingredients, the packaging, the hours, and the shop cost. Then subtract all three from your sales. What is left is your profit.
If your margin is negative, you are losing money. Raise your price or cut your costs. Do not sell at a loss to get customers.
Mistakes that cost you money
Another mistake is not tracking your sales. You need to know your monthly revenue and your costs. A simple spreadsheet can show you profit. See cottage bakery spreadsheet for the columns to track.
Another mistake is not checking your competition. Look at what other home bakers charge in your area. You do not have to match them, but you should know the range.
How to set up your cottage kitchen shop
Check your state law
Read your state cottage food rules. Call the agriculture or health department if anything is unclear. Ask what you can sell and where.
Register or get a permit if required
Check if your state requires a registration or permit. Follow your state’s steps. Keep a copy of your paperwork.
Set your prices with ingredients, labor, and overhead
Use a costing sheet. Add your time and your shop cost. Then set a price that leaves a margin. Check it against your market.
Set up a way to take orders and get paid
You can use Brevl to take orders and card payments through your own Stripe or Square account. You can also take Venmo, Cash App, Zelle, and cash.
Print labels that meet your state rules
Your state tells you what must be on the label. Check before you print. A simple sticker can carry the required information.
Once your shop is set up, you can take orders from your phone. Brevl works on a computer and on a phone. You can customize your shop with your photos and your colors. If you need help with the business code, see business code for cottage bakery.
Before you launch, test your shop with a few friends. Take one order and one payment. Make sure the label is right. Then open to the public.
If you already sell on another site, Brevl can move your products, photos, reviews, and dates. We set it up with you. Brevl has a 14 day free trial.
Your shop can be simple. A few photos, a list of what you sell, and a way to pay. You do not need a fancy website.
Try the free bake pricing calculator
Free, no signup.
Common questions
Do I need a commercial kitchen to sell baked goods from home?
Not always. Many states allow a home kitchen under cottage food rules. Your state decides what you can sell and where. Check your state agriculture or health department website. If your state does not allow it, you may need a commercial kitchen or a different license.
What can I sell from a cottage kitchen?
Your state law lists the allowed items. It may limit you to shelf stable baked goods. It may allow more. Check the list before you plan your menu. If you want to sell something not on the list, ask your state department what you need.
How much does it cost to start a cottage bakery?
Costs vary by state. You may pay a permit or registration fee. You need ingredients, packaging, and labels. You need a way to take orders and get paid. Brevl costs $20 a month with no commission. Add your time to the list.
Can I sell from my home based bakery business cottage kitchen online?
Your state law decides where you can sell. Some states allow online orders for pickup. Some allow shipping. Some do not. Check your state rules first. Then set up a shop that takes orders and payments. Brevl can help with that part.
What label do I need for cottage food?
Your state tells you what must be on the label. It may require your business name, address, ingredients, and an allergen statement. Check your state's rules before you print. A simple sticker can carry the required information.
General information, not legal or tax advice. Cottage food rules vary by state. Check your state agriculture or health department.