California Cottage Laws

Turn your passion for baking into a legal business from your home kitchen

Have you been dreaming of turning your delicious homemade cookies, cakes, or jams into a profitable business? California's Cottage Food Laws make it possible for home bakers like you to legally sell your creations without needing a commercial kitchen. This guide will walk you through everything you need to know in simple, easy-to-understand terms.

What Are Cottage Food Laws?

Think of cottage food laws as your legal permission slip to sell homemade foods. California passed their first cottage food law (AB 1616 – The California Homemade Food Act) in 2012, and it went into effect on January 1st, 2013. These laws create a special category called “Cottage Food Operations” (CFOs) that allows you to prepare and sell certain foods from your home kitchen.

The key word here is “certain” – not all foods qualify, and there are specific rules you must follow to keep your customers safe.

What Foods Can You Make and Sell?

The Good News: You can make a wide variety of delicious treats! Here are some examples of what's allowed:

• Baked goods like cookies, muffins, breads, pastries, and cakes (but no cream or custard fillings)
• Candies such as fudge, toffee, and chocolate
• Jams, jellies, and fruit butters
• Granola and trail mix
• Roasted coffee beans and nuts
• Popcorn and dried fruits

The Rules: All foods must be “non-potentially hazardous,” meaning they're shelf-stable and unlikely to grow harmful bacteria at room temperature.

What You CAN'T Make:

• Foods with cream, custard, or meat fillings
• Fresh salsas or canned vegetables
• Anything that needs refrigeration
• Pet foods or beverages (except roasted coffee)

For the complete, up-to-date list, check the California Department of Public Health's approved foods list.

Understanding Class A vs. Class B: Which Do You Need?

California offers two types of cottage food licenses, and choosing the right one depends on how you want to sell your products.

Class A Registration ($75,000 annual limit)

Perfect for: Beginners who want to start small and sell directly to customers

What you can do:

• Sell from your home
• Sell at farmers markets, craft fairs, and community events
• Sell online through your own website or social media
• Ship products anywhere in California
• Use delivery services like DoorDash or Uber Eats

Requirements:

• Complete a food safety training course
• Register with your local health department
• No kitchen inspection required

Class B Permit ($150,000 annual limit)

Perfect for: More established bakers who want to wholesale to stores and restaurants

What you can do:

• Everything Class A allows, PLUS
• Sell to grocery stores, bakeries, and restaurants
• Wholesale your products to other businesses

Requirements:

• Complete a food safety training course
• Get a permit from your local health department
• Pass an annual kitchen inspection
• Higher permit fees

Important note: You may not sell indirectly outside of your own county, unless the county where you want to sell has specifically stated that they will allow indirect sales of cottage food products.

Step-by-Step: How to Get Started

Step 1: Take a Food Safety Course

Before you can legally sell anything, you need to complete a food safety training course. You must complete a California Department of Public Health food processor course within three months of obtaining your cottage food permit. Look for courses approved by the American National Standards Institute (ANSI) – these are often called “Food Handler's Cards” and are available online.

Step 2: Apply for Your License

Contact your local environmental health department (not the state) to apply. Each county handles applications differently, so visit their website or call for specific instructions. You'll need to provide:

• Your completed application
• Proof of food safety training
• Sample labels for each product you want to sell
• Application fees (varies by county)

Step 3: Set Up Your Business

While waiting for approval, you can:

• Choose a business name and register it if it's different from your legal name
• Get a business license from your city or county
• Set up business banking and accounting
• Consider getting liability insurance (highly recommended!)

Step 4: Create Proper Labels

Your labels are crucial for legal compliance. Every product must include:

• Product name
• Your business name and address
• County where the permit was issued
• Complete ingredient list (including allergens like wheat, nuts, etc.)
• Net weight or quantity
• Your permit number
• The statement: “Made in a home kitchen that is not inspected by the Department of Public Health”

Important Rules to Follow

Kitchen Safety Requirements

• No multitasking: Don't prepare family meals, wash dishes, or do laundry while making cottage foods
• Keep pets and small children out of the kitchen during food preparation
• Clean equipment only: All utensils and equipment must be clean and in good repair
• One kitchen rule: You can only use your primary residence with one stove/oven designed for home use

Business Limitations

• You're limited to one full-time employee maximum
• All sales must stay within California
• You must sell only the foods listed on your approved application
• Keep detailed records of your sales and expenses

How Much Money Can You Make?

Class A operators have a current maximum gross annual sales limit of $75,000, while Class B operators can earn up to $150,000 per year. These limits are for gross sales (total money coming in), not profit.

Common Beginner Mistakes to Avoid

1. Skipping the training: You legally cannot sell without completing food safety training first
2. Incorrect labeling: Missing required information can result in fines and force you to stop selling
3. Selling prohibited foods: Stick to the approved list – “but it's shelf-stable” isn't good enough if it's not officially approved
4. Forgetting to renew: Licenses must be renewed annually
5. Not checking local zoning: Some neighborhoods or HOAs may have restrictions on home businesses

Getting Help and Resources

• California Department of Public Health: Visit their cottage food page for the most current approved foods list
• Your local environmental health department: They handle all permitting and can answer specific questions about your county's requirements
• Small Business Development Centers: Many offer free counseling for new food businesses
• Cottage food forums and groups: Connect with other home-based food entrepreneurs for tips and support

Ready to Start Your Cottage Food Business?

Starting a cottage food operation can be an exciting way to turn your baking passion into profit. While the rules might seem overwhelming at first, thousands of Californians are successfully running cottage food businesses from their homes.

Remember: when in doubt, contact your local health department. They're there to help you succeed while keeping your customers safe. Take it one step at a time, follow the rules, and soon you could be running your very own legal home bakery!

Key takeaway: The cottage food laws exist to help small entrepreneurs like you while ensuring food safety. By following these guidelines, you're not just protecting your customers – you're protecting your business and your dreams.

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Disclaimer: This information is for general guidance only. Food laws can change and vary by location. Always check with your local environmental health department for the most current requirements in your area before starting your cottage food business.