Cottage food rules
Yolo County Cottage Food License: Class A vs Class B Rules
The exact steps and rules to get your Yolo County cottage food license and start selling.
On this page
- What is the difference between Class A and Class B?
- How do you apply in Yolo County?
- What are the labeling requirements?
- What mistakes cost you money or time?
- How do you calculate your true cost per batch?
- Where can you sell with your license?
- What records should you keep for your cottage food business?
- What happens if you outgrow your Class A license?
What to remember
- You must apply through Yolo County Environmental Health.
- California law requires a ‘Made in a Home Kitchen’ label.
- You choose between a Class A or Class B license with different sales caps.
- Your kitchen must pass a self-certification checklist.
Your Yolo County cottage food license lets you sell from your home kitchen. The rules come from both the state and the county. You will need to understand the difference between Class A and Class B operations before you apply. For more on California’s statewide rules, see our guide on the Cottage Food Business License California (2026).
What is the difference between Class A and Class B?
California law defines two types of cottage food operations. Your choice affects where you can sell and how much you can earn. According to a 2026 guide on cottage food law, Class A operations have direct sales only. Class B operations can sell indirectly through third parties.
Based on California cottage food law distinctions for 2026.
| Class A License | Class B License |
|---|---|
| Sales Method | Direct sales only (e.g., farmers' markets, your own shop). |
| Sales Cap | Lower annual sales limit. |
| Labeling | Requires 'Made in a Home Kitchen' statement. |
| Permit | Registration with the local health department. |
To choose, look at your sales plan. If you only sell at farmers markets or from your home, Class A may be enough. If you want to sell to a local shop, you need Class B. Your choice affects your income ceiling and your paperwork.
How do you apply in Yolo County?
Yolo County Environmental Health manages the application process. Their website has a dedicated page for cottage food operations. You will need to submit forms and a fee. The county confirms the Class A and B structure and requirements.
Review the state and county rules
Read the California Department of Public Health guidelines and the Yolo County Environmental Health page.
Complete the self-certification checklist
Ensure your home kitchen meets all safety and equipment requirements.
Prepare your application and fee
Fill out the forms provided by Yolo County and calculate the required payment.
Submit to Yolo County Environmental Health
Send your completed application package to the county for review.
Await your inspection or approval
The county will process your application and confirm your license class.
Processing times can vary. For a general idea, read our guide on How Long Does It Take to Get a Cottage Food License (2026).
If you have questions, contact Yolo County Environmental Health directly. They can clarify the current fee schedule and any inspection requirements. It is better to ask before you submit your application.
What are the labeling requirements?
Every product you sell must have a proper label. California law has a specific rule for cottage foods. Your label must include the phrase ‘Made in a Home Kitchen’ according to the Cottage Food Law Library. This is a mandatory disclosure statement.
Your label must be on every product you sell. The phrase ‘Made in a Home Kitchen’ must appear exactly as written. You should check your labels before each batch leaves your kitchen. The same library provides the full list of required label elements.
What mistakes cost you money or time?
A simple error can delay your launch or lead to fines. Avoid these common pitfalls.
How do you calculate your true cost per batch?
Pricing your products correctly starts with knowing your true cost, which includes ingredients, packaging, labor, and overhead. If you ignore any of these, you may lose money on every sale.
Here is an example for a batch of 24 cupcakes that shows how to add ingredients, labor, and overhead. Your ingredients cost $8.50, packaging costs $3.50, and your labor for baking and decorating is worth $15. Your overhead includes power, licensing, and market fees, which total $5, so your total cost is $32.
If you sell each cupcake for $2.50, your revenue is $60, and your margin after all costs is $28. If you had ignored overhead and labor, you might think your margin was $51.50, which would lead you to underprice.
To find your cost per cupcake, divide your total cost of $32 by 24, which gives you $1.33. Your selling price of $2.50 leaves a profit of $1.17 per cupcake, showing your real profit on each sale.
Where can you sell with your license?
Your sales channels depend on your license class. Class A limits you to direct sales. Class B allows for more wholesale opportunities. Always verify that your sales method matches your license to stay compliant.
Once licensed, you need a way to take orders and get paid. A dedicated shop helps you look professional. Brevl gives you a shop with your own photos and colors. You can take card payments through your own Stripe or Square account, plus Venmo, Cash App, Zelle, and cash. It is one flat $20 a month with no commission.
What records should you keep for your cottage food business?
You should keep records of your sales to ensure you stay under your annual sales cap. Track your revenue by month and by sales channel to know when you are approaching your limit.
You should also keep copies of your labels and your self-certification checklist in case the county asks for them. Good records also help you calculate your costs and margins accurately for better pricing decisions. Your records do not need to be complicated, and a simple spreadsheet or notebook can work. The important thing is to update them regularly so you always know your sales total.
What happens if you outgrow your Class A license?
If your direct sales grow beyond the Class A annual limit, you will need to upgrade. You can apply for a Class B license through Yolo County Environmental Health to sell indirectly through third parties.
The upgrade process involves a new application and fee, and you will need to meet any additional requirements. Plan ahead so you do not have to pause your sales while you wait for approval. Once you have a Class B license, you can approach local shops and restaurants while continuing your direct sales. Always verify that your sales method matches your license class to stay compliant.
Try the free bake pricing calculator
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For more specific rules about kitchen setups, read our guide on Cottage Food License Kitchen Requirements. Explore all our rules guides for other county and state specifics.
Common questions
Do I need a separate business license in Yolo County?
Your cottage food license is your primary permit. You should also check with Yolo County and your city about a general business license. Requirements can vary by location within the county.
Can I sell online with a Yolo County cottage food license?
Yes, but delivery must be direct to the consumer or to an event you attend. You cannot ship cottage food products through the mail or a carrier under the current law. All sales must be within California.
What foods can I not sell under the cottage food law?
You cannot sell potentially hazardous foods that require refrigeration. This includes items with fresh dairy, meat, or certain cooked vegetables. The state provides a detailed list of approved and non-approved foods.
How much does the Yolo County cottage food license cost?
Fees are set by Yolo County Environmental Health. The cost varies based on the license class and any required inspections. You should contact them directly or check their website for the current application fee schedule.
Sources
This guide provides general information about Yolo County cottage food licenses. It is not legal advice. Rules and fees change. Always confirm requirements with Yolo County Environmental Health and the California Department of Public Health before applying.