Cottage food rules
How to Sell Baked Goods Without a License (2026)
A Texas-based path to selling shelf-stable baked goods without a state license, plus the sales cap and course you need.
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This guide uses Texas as the worked example because its cottage food path is specific enough to follow, and it is not a green light for every state. You will see what makes a sale direct, how the $150,000 cap works, and the records that keep you inside it. The aim is to make how to sell baked goods without a license a checklist, not a guess.
What to remember
- In Texas, shelf-stable, non-TCS goods sold directly to consumers need no permit, inspection, or state license.
- The state sets a $150,000 inflation-adjusted annual sales cap.
- One food handler course is required for Texas cottage food sellers.
- Certain foods or sales channels can still need a permit or registration.
- A $20 monthly Brevl fee is $240 a year, so put it in your overhead.
What without a license means in Texas
Texas does not require a traditional license from the state health department to run a home bakery, according to Soccash. That is the narrow point, not a free pass for every food or every sales channel. The Cottage Food Law Library says a permit or registration is reserved for certain foods or sales channels.
For baked goods, the simple case is a shelf-stable, non-TCS product sold directly to the consumer. That is the case the no-license rule is built around. Keep the sale direct and the product in that category, and you stay on the path the material describes.
Based on the Texas cottage food sources listed below.
| Texas sale | What the material says |
|---|---|
| Shelf-stable, non-TCS goods sold directly to consumers | No permit, inspection, or state license required |
| Certain foods or sales channels | A permit or registration may apply |
The line between a simple sale and a regulated one is not the name of the baked good alone. It is the food category and the buyer. If you cannot say yes to shelf-stable, non-TCS, and direct, treat the sale as one to check.
The $150,000 cap and the one course you need
Texas sets a $150,000 inflation-adjusted annual sales cap, according to Bakingsubs. Count every sale, because the cap is a ceiling for the year. The same guide says the figure adjusts with inflation.
One food handler course is required for Texas cottage food sellers, per Bake Profit. Finish it before your first sale and keep the proof with your order records. The course is separate from the sales cap, and you should not skip it.
Put two dates on your calendar: the day you finish the course and the day you check your yearly sales total. The course proof and the sales total are the two records to have ready if someone asks about your cottage food year.
A simple path from first batch to first sale
Pick a shelf-stable, non-TCS item
Start with a baked good that fits the Texas no-license example: shelf-stable, non-TCS, and sold direct.
Keep the sale direct
Sell to the person who eats the goods. Check before you add a sales channel that is not direct.
Take the food handler course
Complete the one course Texas requires and save the certificate before your first sale.
Track sales against the cap
Add every order to a yearly total so you know how close you are to $150,000.
Put overhead in the price
Add the $20 monthly Brevl fee to overhead before you set the batch price.
The order matters. Check the food and channel before you spend on packaging or a website. A sale that does not fit the simple path is not a sale to fix later.
A three line price check before you sell
For example, build one batch price from three lines. Ingredients are the receipts for that batch. Labor is your hours times the rate you pay yourself. Overhead includes the $20 monthly Brevl fee, which is $240 a year. Margin is the batch price minus all three. If the number left is too small, change the batch size or your price before you sell.
At the $150,000 cap, $240 a year is 0.16% of sales. That is small, but it still belongs in your numbers. A batch priced without labor leaves money on the table.
Mistakes that cost home bakers money
The first mistake is counting sales only when they hit your bank. The cap is annual sales, so cash and card orders belong in the same total. The second is treating the $20 monthly fee as invisible. It is $240 a year, and it belongs in overhead before you price a batch.
A third mistake is skipping the course because the goods are shelf-stable. The course is still required. Keep the certificate simple to find, and do not wait until a customer asks for it.
When to stop and get a license or permit
Stop before you take the order if the food is not shelf-stable or non-TCS. Stop if the buyer is not the direct consumer. Stop if a permit or registration applies to that food or channel. A permit or registration can still apply, so check first.
If you plan to sell online, check can I sell home baked goods online before you list. If you are outside Texas, start with do I need a license to sell baked goods from home and the cottage food law for baked goods. If you are ready to move from cottage food to a fuller setup, read how to get a home baking license.
Common questions
Can I sell baked goods from home in Texas with no license at all?
For shelf-stable, non-TCS baked goods sold directly to consumers, Cakery Bakeries says Texas requires no state license, permit, or inspection. You still need one food handler course and must keep annual sales at or below $150,000. Other foods or sales channels can need a permit or registration.
What counts as a direct sale in Texas?
A direct sale is when the person who buys the baked goods is the consumer. The no-license example in the material is shelf-stable, non-TCS goods sold directly to consumers. If you add a sales channel where that is not true, check before you take the order.
Does the $150,000 cap include cash orders?
Yes. The cap is $150,000 in annual sales, and it is inflation-adjusted. Cash and card orders are both sales, so they belong in the same total. Track every order through the year so you know when you are close.
Do I need a food handler course to sell cottage food in Texas?
Yes. Bake Profit says Texas requires one food handler course for cottage food sellers. Take it before your first sale and keep the certificate where you can find it. The course is separate from the sales cap and the direct sale rule.
What happens if I sell more than $150,000 in a year?
The $150,000 figure is the annual Texas cottage food sales cap, and Bakingsubs says it adjusts with inflation. If your sales pass it, the simple no-license path no longer fits. Stop and check what permit or license your new sales level requires before you keep taking orders.
Sources
General information, not legal or tax advice. Check your state and local rules before you sell.