Michigan Cottage Laws

Your complete guide to starting a home baking business in the Great Lakes State

Dreaming of turning your amazing chocolate chip cookies or famous apple pie into a profitable business? Michigan's Cottage Food Law makes it surprisingly easy to get started! Since 2010, the state has allowed home bakers to sell certain foods directly to customers without the expensive overhead of a commercial kitchen or complex licensing process.

The Great News: Michigan Makes It Simple!

Here's what makes Michigan fantastic for aspiring home bakers:

• No license required – you can start today!
• No inspections needed from the state
• No applications or paperwork with the state
• No permits required from Michigan Department of Agriculture
• Simple requirements that are easy to follow

It is very easy to start a cottage food business, since no license or inspection from the ag department is needed.

What Can You Make and Sell?

Michigan allows you to make and sell non-potentially hazardous foods – basically, foods that can be safely kept at room temperature and don't require refrigeration. Some examples include: fruit jams/jellies, breads and similar baked goods, cookies and cakes, vinegars and other non-potentially hazardous foods.

Baked Goods (Your Bread and Butter!)

• Breads (all kinds – white, wheat, banana, zucchini)
• Cookies (chocolate chip, oatmeal, sugar, snickerdoodles)
• Cakes (birthday cakes, wedding cakes, cupcakes)
• Muffins and biscuits
• Pies (fruit pies that don't require refrigeration)
• Bagels, rolls, scones
• Brownies and bars
• Donuts (cake donuts, not cream-filled)

Sweet Treats

• Hard candies and lollipops
• Chocolate-covered items (pretzels, strawberries, nuts)
• Marshmallows
• Cotton candy
• Caramel corn and popcorn

Other Allowed Foods

• Fruit jams and jellies (in glass jars that can be stored at room temperature)
• Granola and trail mix
• Dried herbs and spice mixes
• Dry baking mixes (cookie mix, cake mix)
• Dried pasta
• Coffee beans and grounds
• Vinegars
• Nuts and seeds
• Dehydrated fruits and vegetables

What You CAN'T Make

To keep everyone safe, Michigan prohibits foods that could spoil or cause illness:

• Meats and meat products (including jerky)
• Fish and seafood products
• Dairy products requiring refrigeration
• Cream or custard-filled items (cream pies, éclairs, cheesecake)
• Canned fruits or vegetables
• Pickled products (pickles, salsa)
• Raw seed sprouts
• Baked goods that contain alcohol (rum cake, bourbon balls)
• Anything requiring refrigeration for safety

Income Limits: Room to Grow

Michigan caps your allowable income annually to $25,000.00. The Cottage Food Law includes a limit to the amount of money you can make selling cottage foods. The limit is currently gross sales to $25,000 per year.

This might sound limiting, but it's actually perfect for:

• Testing your market
• Building a customer base
• Learning the business
• Deciding if you want to go commercial

Once you hit $25,000, you'll need to transition to a licensed commercial kitchen – but by then, you'll know your business is successful!

Where Can You Sell?

Michigan allows direct sales to consumers at these venues:

• Farmers markets
• Craft fairs and festivals
• Roadside stands
• From your home (direct pickup)
• Direct delivery to customers

What You CAN'T Do

Michigan has some restrictions on selling methods:

• No retail stores (can't sell through grocery stores, coffee shops)
• No restaurants or wholesalers
• No online sales (no Facebook, Instagram, or website sales)
• No shipping products
• No third-party sales (others can't sell your products)

The food can only be sold to customers directly, such as at farmers markets, roadside stands or craft fairs. No products can be sold to retail stores, restaurants, to wholesalers, other distributors, online (including Facebook) or via mail.

Kitchen Requirements: Keep It Simple

Your cottage food kitchen must be in your primary single family residence – the place where you live. This can be:

• A house you own or rent
• An apartment or condo
• Any place that's your primary home

It cannot be:

• A vacation home or second property
• A garage, shed, or barn
• A commercial kitchen rental
• Group housing (sororities, group homes)

Labeling Requirements

Every product needs a proper label with specific information. Each cottage food product must be labeled. The label must be printed or handwritten in at least 11-point type or about 1/8 inch tall and include:

Required on Every Label:

1. “Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture and Rural Development” (in 11-point font)
2. Product name (what it is)
3. Your complete name and physical address (no P.O. boxes)
4. Ingredients list (in order by weight, heaviest first)
5. Net weight or volume (with metric equivalent)
6. Allergen warnings for: milk, eggs, wheat, peanuts, soybeans, fish, and tree nuts

Label Tips:

• Hand-printed labels are fine if clearly legible
• Use permanent ink
• Make sure font is large enough (1/8″ tall)
• Include sub-ingredients (if you use “soy sauce,” list it as “soy sauce (wheat, soybeans, salt)”)

Getting Started: Your Step-by-Step Plan

Step 1: Choose Your Products

Pick from the allowed foods list and start with what you do best!

Step 2: Set Up Your Kitchen

Make sure your kitchen is in your primary residence and ready for safe food production.

Step 3: Create Your Labels

Design labels that include all required information.

Step 4: Find Your Sales Venues

Research local farmers markets, craft fairs, or plan for direct sales from home.

Step 5: Keep Good Records

Track all sales to stay under the $25,000 annual limit. You need to maintain sales records and provide them to a Michigan Department of Agriculture & Rural Development (MDARD) food inspector, upon request.

Step 6: Start Selling!

No applications, no waiting – you can begin as soon as you're ready!

Food Safety Best Practices

Even though inspections aren't required, protect your customers and your business:

Personal Hygiene

• Wash hands frequently – before starting, after touching anything unsanitary
• Tie back long hair and wear clean clothes
• Keep fingernails clean and short
• Cover cuts with bandages
• Don't prepare food when sick with vomiting or diarrhea

Kitchen Safety

• Keep everything clean – sanitize surfaces and equipment
• Avoid cross-contamination – don't prepare raw meat while making cottage foods
• Store foods properly – 6 inches off the floor in airtight containers
• Keep storage areas clean – free of pests, dampness, standing water

Common Beginner Questions

Q: Do I need any permits or licenses from the state? A: No! If you qualify to operate under the Cottage Food law, you are exempt from obtaining a food establishment license under the Food Code.

Q: Can I sell my famous cheesecake? A: Unfortunately, no. Cheesecake requires refrigeration and contains dairy, so it's not allowed under cottage food laws.

Q: What about my grandmother's jam recipe? A: Perfect! Fruit jams and jellies are specifically allowed.

Q: Can I sell on Facebook or Instagram? A: No, Michigan doesn't allow online sales under cottage food laws. All sales must be direct and in-person.

Q: Do I need food safety training? A: It's not required by law, but highly recommended. Michigan State University Extension offers a free 2-hour training course.

Q: What about sales tax? A: You'll need to check with the Michigan Department of Treasury, but generally prepackaged foods not for immediate consumption aren't taxable.

Growing Beyond Cottage Food

Once you hit the $25,000 annual limit or want to expand your sales methods, you'll need to:

• Transition to a licensed commercial kitchen
• Obtain proper food establishment licensing
• Meet commercial food safety requirements

But don't worry about that now – focus on building your customer base and perfecting your products!

The Bottom Line

Michigan's Cottage Food Law is designed to help small entrepreneurs like you test the waters of food business without major upfront costs. With no licenses, no inspections, and straightforward requirements, you can start selling your homemade treats almost immediately.

Whether you're famous for your chocolate chip cookies, incredible fruit pies, or amazing granola, Michigan gives you the freedom to turn your passion into profit. The $25,000 annual limit gives you plenty of room to grow and learn, and if you outgrow cottage food laws, that's a good problem to have!

Start small, follow the simple rules, keep good records, and most importantly – have fun sharing your delicious creations with your community.

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Remember: While this guide covers the basics, always verify current requirements with the Michigan Department of Agriculture & Rural Development at 800-292-3939 or MDA-Info@Michigan.gov before starting your business.