Cottage food laws in many US states let you make certain lower-risk foods in your home kitchen and sell them directly to customers, without renting a commercial kitchen. Typical examples are breads, cookies, cakes without perishable fillings, jams, candy, dry mixes and granola.
It is the lowest-cost entry point to the restaurant and food service industry and a smart way to test recipes and pricing before taking on a food truck or storefront.
Who it suits
Home bakers and cooks who want to start small, test demand and keep their day job while they do.
Check your state’s rules first
Cottage food laws differ a lot. They set which foods are allowed, whether you need to register or take a food safety course, how much you can sell in a year, and whether you can sell online or ship across state lines. Most states require labels that list ingredients and allergens and state that the food was made in a home kitchen. Start with your state department of agriculture or health.
Startup costs
Ingredients, packaging, labels, a few pieces of equipment and any state registration fee. Many people start with what they already have in their kitchen.
How it makes money
Farmers markets and craft fairs, preorders with local pickup, and custom orders for birthdays, weddings and holidays. Holiday seasons can bring a big share of yearly sales.
How to grow
When you hit your state’s sales cap or want to sell to stores and cafés, move to a licensed commercial kitchen. Many cities have shared kitchens you can rent by the hour.
Watch out for
Underpricing your time, allergen mistakes and selling foods your state doesn’t allow. Track every cost, including your hours, before you set prices.
Last reviewed October 17, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
