I recently made my first attempt at baking macarons, the Parisian delicacy that’s hard to come by in the U.S. and notorious for being finicky to make. As I waited for the crispy cookie shells to bake in the oven, I took in the almond flour scent and imagined a blissful life running a macaron production line, spending my time surrounded by the pastel morsels, and feeding them to happy family and friends and customers.
Once I admitted this was probably not actually an ideal career path (so much standing on my feet!), I did stop to wonder if it would be possible–if I could perfect the technique–to make macarons and sell them around town on occasion as a fun side hobby.
It used to be that if you had a fabulous method for for vanilla cupcakes or macarons or peanut butter cookies, and your friends or neighbors wanted to get their hands on a dozen, you had two options to bake and sell: 1) get a commercial kitchen license or rent out a commercial kitchen in order to comply with health code regulations, or 2) do it illegally under the table from home (metaphorically speaking).
Fortunately for people like me and anyone else interested in dabbling in the baking business without renting a restaurant kitchen, Cottage Food laws have spread across the country in the past few years. Currently pending in states like California and South Carolina, and already in place in states from Oregon to Maine, these laws are a departure from the regulation of all things edible, allowing home bakers to bake from home and sell their goods to the public under certain circumstances.
Though the laws vary by state, they usually set the following conditions:
1) Paperwork. Although the general idea is to keep state regulators out of your business, some states may require an inspections process of your home kitchen in order to get started up. You may also have to pay a home bakery registration fee.
2) What you can sell. In most cases, only baked goods considered “non-hazardous”–things like cookies and cakes that aren’t likely to harbor food-borne illnesses–are allowed by the laws.
3) Where you can sell. In stricter states, you may only be able to sell your home-baked goods directly out of your home. Other states with more lenient laws allow home bakers to sell at public venues like local farmer’s markets.
4) Labeling. As a form of consumer protection, most laws require labeling on home-baked products specifying that they were made in a home kitchen not regulated by the state’s department of agriculture. Some states also require a list of any allergens (peanuts, wheat, etc.) contained in the item. Others require a list of ingredients by weight, similar to standard food labeling for commercial food.
5) Profit limits. Many Cottage Food laws limit the total amount of sales a home baker can do in a year–typically somewhere in the low thousands. Anything over the limit and you’ll need to set up a commercial kitchen like other larger-scale operations.
Though the laws have been met with much rejoicing by bakers hoping to boost their economic situation, they aren’t without controversy: food safety groups and consumer protection advocates are up in arms in many states, worried that home baking will put consumers at risk. They do have a point. If you wanted, you could whip up your cupcakes in a dirty kitchen with sick children in the house, use improper food handling precautions, and then wrap those up in a pretty box and pass them off to an unsuspecting customer. Don’t do that.
To get your own home bakery operation started, find more information about your state’s laws below.
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Jane,
Thanks for this information. Very helpful. And, while they -as yet- do not have any Cottage Food Laws, could you add the District of Columbia on your States list. We are not a state per se, but we are still part of the Union with our own government. Thanks,
Kathy B.
Hi Kathy,
Thanks for the heads up! We added District of Columbia to the list, and will keep our eyes open for any D.C. Cottage Food Law updates.
Happy home baking,
Jane
Hi Kathy,
I wanted to start a business selling cake pops, fudge, and some other stuff. But a “friend” had to rain on my parade, and said that I need a business license, I would have to either rent a kitchen or build a certified kitchen in 30% or less of my home, with it’s own entrance, etc etc… I am a single mom who is just looking for a way to make a little extra cash on the side while I get through college, I’m not looking to be the next Betty Crocker, (at least not yet ;) ). I clicked the link for my state, but it says it no longer exists. I’m in Georgia by the way. Thanks. :)
Hi Amanda,
Sorry about the link not working (it’s been updated now). Here’s a link to the Georgia Department of Agriculture’s Food Safety Division. It should have the information you’re looking for. http://agr.georgia.gov/cottage-foods.aspx
Just found this info today and I am totally crushed. I am in Illinois (Illinoying) as I like to call it. I am struggling with my income and wanted to start decorating cakes as a side income. After acquiring enough basic tools and a few interested friends, I learned my state (you know the notoriously corrupt one) will only let you sell baked goods at a farmers market. I don’t know many people that shop for last minute specialty cakes outside on Main St. That is also after paying for a 15 hour certification course and having an inspection and your food tested. All ingrediants must also be listed by weight. Give me a break! I am so ready to move to another state! Any ideas? Who loves where they live and has the freedom to earn a living?
Join us in Oregon, Jenn. You get beauty like this http://vimeo.com/32852978 and can decorate to your hearts content.
fyi: District of Columbia just introduced a new cottage food bill. http://www.washingtonpost.com/business/on-small-business/dc-bill-would-allow-small-bakers-to-operate-without-a-license/2013/03/12/990d977c-8b62-11e2-9838-d62f083ba93f_story.html
That’s awesome. Thanks for the heads up.
Does anyone happen to know why Cottage food laws forbid internet sales? Maybe all states don’t, but I’m in Florida and here you can’t take internet orders. I’m just wondering what the logic would be for forbidding internet sales. The laws already forbid any foods that are “potentially hazardous” such as meats and other things that could spoil, so it doesn’t seem that shipping is the concern. I am interested in starting an internet confection company and because of this there is no way to start small, as I would have to obtain use of a commercial kitchen by either buying or renting a space, or converting space in my house that is “completely separate” from my home kitchen as the law says.
Hey Josh,
Florida’s law doesn’t explicitly state why you can’t sell over the Internet, but after researching some similar laws it appears the reason is because states want the product to be sold directly to the end consumer and that couldn’t be guaranteed with Internet sales. The states see cottage food businesses as just a stepping stone for people to end up in a licensed, regulated commercial kitchen.
You could try contacting the Florida Department of Agricultural and Consumer Services Division of Food Safety at http://www.freshfromflorida.com/fs/contact.html for a more specific answer.
What are the fiscal responsibilities of the Cottage Food Operation? will i file taxes as self employed?
Because I’m not a tax professional I’m going to refer you to the IRS self-employed tax section. It does appear that you’d be responsible for self-employment taxes.
I’ve been searching online for the specifics of the cottage food law for Maryland, specifically Montgomery County, but haven’t been successul. Any chance you can help me out? Thanks!
Hi Linda,
It looks like a cottage food law passed the Maryland legislature in late 2012, but it’s fairly restrictive. Here are more details (which include a link to the full bill) http://cottagefoods.org/laws/maryland/. For specific questions, I would contact the Maryland Dept. of Agriculture at (410) 841-5700. Here is a link to information on Montgomery County’s website http://www6.montgomerycountymd.gov/hhptmpl.asp?url=/content/hhs/license/EnvHealth/Food/Home/index.asp. It says home kitchens will not be licensed, but phone contact information is also provided.