Can You Sell Baked Goods from Home? What You Need to Know

Cottage food laws are state statutes that allow individuals to produce and sell certain types of homemade food products without the commercial kitchen license that would otherwise be required. These laws exist in all 50 states in some form, though their scope and restrictions vary widely. Most cottage food laws permit the sale of non-potentially-hazardous foods, which are foods that do not require refrigeration to remain safe.

Baked goods like cookies, cakes, breads, muffins, brownies, and similar shelf-stable products are typically permitted under cottage food laws. Items that require refrigeration, such as cream-filled pastries or cheesecakes, are often excluded, though some states have expanded their laws to cover a broader range of products.

Most cottage food laws permit a broad range of shelf-stable baked goods including cookies, drop biscuits, brownies, muffins, quick breads like banana bread and zucchini bread, yeast breads, cakes with shelf-stable frostings (such as buttercream made without fresh dairy), cake pops, dipped pretzels, and similar items. The key consideration is whether the product requires refrigeration to prevent bacterial growth.

Products made with fresh cream, custard, cream cheese, or other perishable dairy fillings typically fall outside the cottage food exemption in most states. Products that contain fruit fillings can also be restricted in some jurisdictions because the low pH and high moisture content of some fruit preparations can support pathogen growth.

Cottage food laws typically restrict where you can sell your products. Most states permit direct-to-consumer sales at locations such as farmers markets, roadside stands, fairs, community events, and direct from your home.

Some states also allow online sales for local pickup or delivery. A significant number of states prohibit or restrict indirect sales, meaning you generally cannot sell through third-party retail stores, grocery stores, or food distributors under a cottage food exemption.

Some states, like California, have tiered systems that allow indirect sales above a certain revenue threshold once you meet additional requirements. Always check whether your state allows the specific sales channel you plan to use.

Many states impose an annual gross revenue cap on cottage food operations. These caps range from a few thousand dollars to $75,000 or more per year, and a handful of states have no cap at all.

The cap is intended to keep cottage food exemptions focused on small-scale personal businesses rather than full commercial operations. If you exceed the cap in a given year, you may be required to obtain a commercial food processor license and transition to a licensed commercial kitchen.

It is important to track your revenue throughout the year so you can plan accordingly. Some states count all cottage food sales toward the cap, while others count only sales of specific product categories.

Every state requires cottage food producers to label their products with at minimum a disclosure that the product was made in a home kitchen not inspected by the state. Beyond that, most states require the product name, your name or business name, your address, an ingredient list, and allergen disclosures. Federal labeling rules also apply to packaged foods, including requirements for ingredient listing in descending order by weight and declaration of all nine major allergens.

Even if you are selling at a farmers market table-to-customer, your packaged products still need complete labels. Investing in clear, accurate labels from the start protects both your customers and your business.

Before you sell a single item, look up your state's specific cottage food law. Your state's department of agriculture website is the best starting point. Some states require registration or a permit before you begin selling, while others only require that you comply with the rules and label your products correctly.

Once you understand the legal framework, set up your record-keeping, including a recipe log, a batch log, and a sales ledger to track revenue against any applicable cap. Consider food safety training, such as a ServSafe Food Handler certification, even if it is not required by your state, because it builds good habits and demonstrates professionalism to your customers.