Do I Need a License to Sell Baked Goods from Home?

The Good News

All 50 US states allow some form of home-based food sales under cottage food laws. In most states, you do not need a food handler's license, commercial kitchen, or health department inspection to sell baked goods from your home kitchen.

What You Typically DON'T Need

• Food handler's permit (most states)
• Commercial kitchen inspection
• Business license (in many states)
• Health department approval

What You Typically DO Need

• Proper labeling: Name, address, ingredients, allergens, "Made in a Home Kitchen" disclaimer
• To stay within your revenue cap: Ranges from $25,000 to $250,000+ depending on state
• Registration: Some states require a simple registration (not a license). Usually free or under $50.
• Food safety training: A handful of states require a basic food safety course

States That DON'T Require a License or Registration

Many states let you start selling immediately with just proper labels: Florida, Texas, Colorado, Utah, Ohio, and others. Check your state's specific rules.

States With More Requirements

Some states require permits, inspections, or food safety certifications: California, New York, New Jersey, and a few others have more stringent requirements.

When You DO Need a License

You typically need to step up to a commercial license when:

• You exceed your state's cottage food revenue cap
• You want to sell products not on the "allowed" list (like anything requiring refrigeration)
• You want to sell wholesale to stores or restaurants
• You want to ship products across state lines (federal FDA regulations apply)

Bottom Line

For most home bakers selling directly to customers in their state, cottage food laws make it easy to start legally. The key is knowing your state's specific rules and staying compliant. KneadIt lets you set your state's revenue cap and tracks your earnings against it, so you always know where you stand.