You can sell food online from home in every state, as long as you stay inside your state’s cottage food rules, sell to buyers in that same state, label the product correctly, and report the income. The tighter question is what “online” actually means where you live: some states let you take internet orders and ship anywhere in state, some require the buyer to pick up in person, and shipping across state lines pulls you into a separate federal regime that most home kitchens can’t meet.
What Cottage Food Laws Let You Do
Cottage food laws exist in all 50 states and let you prepare and sell certain foods from your home kitchen without building out a commercial facility. They were written for small producers, so they come with built-in ceilings on what you can make, how much you can earn, and who you can sell to. Stay inside those limits and you avoid the cost of a full commercial food license.
Most states cap annual gross revenue. Some set the limit around $25,000 or $50,000. Others have pushed higher: Texas raised its cap to $150,000, Nevada allows up to $100,000, and a handful of states have eliminated the cap entirely. Cross the line and you have to move into a licensed commercial kitchen with tougher health and safety requirements.
Online sales are the piece to check first. Not every state permits cottage food to be sold over the internet. Some restrict you to direct in-person transactions at farmers’ markets, community events, or from your home. Others allow online orders only when the buyer picks up in person. A growing number allow shipping within the state. Read your state’s actual cottage food statute before building a storefront, because a law that permits “direct sales to consumers” doesn’t automatically include shipping or internet orders.
Which Foods You Can Sell From Home
Cottage food laws generally limit you to shelf-stable foods, the technical phrase being foods that don’t require time or temperature control for safety. Baked goods like cookies, breads, and brownies are allowed almost everywhere. Jams, honey, dried herbs, granola, candy, and roasted nuts are also common across most states.
Foods that spoil quickly or carry a higher risk of bacterial contamination are almost universally excluded. Cheesecakes with cream cheese filling, custard-based desserts, anything with meat or fish, and most dairy products are off-limits. Some states also restrict acidified foods like pickles and salsas unless you complete a specialized course in safe canning techniques. Verify your specific products qualify in your state before you invest in ingredients and packaging.
Permits and Registration You Actually Need
The paperwork is lighter than most people expect. Many states require only a simple registration with the local health department or state department of agriculture. State registration fees typically run from nothing to $50. A physical kitchen inspection is not required in most states for cottage food; registration is often a paper process where you describe your setup, list your products, and confirm you understand the rules. Move beyond cottage food into a licensed commercial operation and inspections become mandatory.
Food Safety Training
Many states require a food handler’s certificate or completion of a food safety course before you can register. These cover sanitation, cross-contamination prevention, and safe storage temperatures. They’re available online, take a few hours, and cost roughly $10 to $30. Some states accept any ANSI-accredited course; others require a state-specific program. Even where training isn’t required, do it. A customer who gets sick creates a liability problem no permit can fix.
Zoning and Home Occupation Permits
Your state’s cottage food law may allow you to cook from home, but your city or county zoning ordinance has its own say. Many municipalities require a home occupation permit before you can run any business from a residential property. Common restrictions include limits on customer traffic, prohibitions on exterior signage, and rules about noise and odors. Fees typically run under $150. The bigger risk is operating without one and having a neighbor complaint trigger enforcement. Check with your local planning or zoning office before you start.
Do You Need an EIN?
If you’re a sole proprietor with no employees, you can use your Social Security number for tax purposes and don’t legally need a separate Employer Identification Number. You would need an EIN if you hire employees, operate as a partnership or corporation, or need to file employment or excise tax returns. Many banks also require an EIN to open a business account, so it’s often practically useful. Applying is free on the IRS website and takes minutes.1Internal Revenue Service. Employer Identification Number
How Your Product Has to Be Labeled
Under the Fair Packaging and Labeling Act, every packaged food must display the product name, the net quantity in both standard and metric units, and a list of ingredients ranked by weight from most to least.2Office of the Law Revision Counsel. 15 USC Chapter 39 – Fair Packaging and Labeling Program Your label also needs your business name and physical address.
Allergen Disclosure
The Food Allergen Labeling and Consumer Protection Act requires clear disclosure of the eight original major allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soybeans.3U.S. Food and Drug Administration. Food Allergen Labeling and Consumer Protection Act of 2004 (FALCPA) The FASTER Act added sesame as the ninth major allergen, effective January 1, 2023.4U.S. Food and Drug Administration. The FASTER Act – Sesame Is the Ninth Major Food Allergen All nine must appear on your label. Mislabeled allergens are one of the most common reasons the FDA seizes food products, and they can cause real harm to your customers.
Cottage Food Disclaimer
Most states require cottage food products to carry a conspicuous disclaimer stating the item was made in a home kitchen that has not been inspected by a health department. Exact wording varies by state. Place the statement where a customer will actually see it, not buried in tiny print on the back.
Nutrition Facts
Full Nutrition Facts panels require lab testing per product. Most small food businesses qualify for an exemption. If your total annual gross sales are $500,000 or less, or your food sales specifically are $50,000 or less, you qualify as a retailer exempt from nutrition labeling without filing any notice. Businesses with fewer than 100 full-time equivalent workers that sell fewer than 100,000 units of a given product per year can file an annual notice with the FDA and skip the panel.5U.S. Food and Drug Administration. Small Business Nutrition Labeling Exemption Virtually every cottage food operation falls inside these thresholds.
Shipping to Customers in Other States
This is where the rules get substantially harder. Cottage food laws are state laws, and almost all limit you to sales within your own state. The moment you ship to a customer in another state, you enter interstate commerce, and federal agencies take over.
Any facility that manufactures, processes, packs, or holds food for sale in interstate commerce generally must register with the FDA. The Food Safety Modernization Act requires registered facilities to maintain hazard analysis plans, implement preventive controls, and follow strict recordkeeping rules.6U.S. Food and Drug Administration. Frequently Asked Questions on FSMA For a home kitchen producer, this effectively means moving into a commercial facility to sell interstate, because a home kitchen won’t meet FSMA requirements.
A “qualified facility” exemption exists for very small businesses. If your average annual food sales over the past three years are under $500,000 and the majority of your sales go directly to consumers, restaurants, or retailers within your state or within 275 miles of your facility, you face reduced requirements. You still register, but you can follow modified rules rather than the full preventive controls framework.7U.S. Food and Drug Administration. Small Business Under the PC Human Food Rule
Meat Products
Meat slaughtered and processed under state inspection can only be sold within that state. To ship meat products across state lines, the source materials must come from a USDA-inspected facility.8Food Safety and Inspection Service. FSIS Guideline for Determining Whether a Livestock Slaughter or Processing Firm is Exempt from the Inspection Requirements of the Federal Meat Inspection Act This isn’t a formality you can work around. State-inspected meat cannot cross state lines for sale.
Shipping Perishable Foods
The FSMA sanitary transportation rule requires anyone shipping food to maintain safe temperatures throughout transit. For perishable items, that means insulated packaging, gel packs or dry ice, and carriers capable of maintaining required temperatures.9U.S. Food and Drug Administration. FSMA Final Rule on Sanitary Transportation of Human and Animal Food If your product arrives at unsafe temperatures, inspectors can destroy it and you bear the loss.
Taxes When You Sell Food Online
Income from food sales is self-employment income, and the IRS expects you to report it even if you’re operating under a cottage food law with modest revenue. Report income and expenses on Schedule C of your personal tax return.10Internal Revenue Service. Instructions for Schedule C (Form 1040)
On top of regular income tax, you owe self-employment tax of 15.3% on your net earnings: 12.4% for Social Security and 2.9% for Medicare.11Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) For 2026, the Social Security portion applies to the first $184,500 of combined earnings.12Social Security Administration. Contribution and Benefit Base The Medicare portion has no cap.
Most direct costs are deductible: ingredients, packaging materials, shipping supplies, and platform fees all reduce your taxable income. If you use part of your home regularly and exclusively for the business, the simplified home office deduction is $5 per square foot up to 300 square feet, capped at $1,500.13Internal Revenue Service. Simplified Option for Home Office Deduction Driving to buy supplies or deliver products is deductible at 72.5 cents per mile for 2026.14Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents Per Mile
Sales tax on food varies dramatically by state. Some exempt most grocery items. Others tax prepared foods but not raw ingredients. Selling online in your own state means checking whether your products are taxable and registering for a sales tax permit if they are. Selling to customers in other states triggers economic nexus rules, which generally require you to collect and remit sales tax once your sales into a given state exceed a dollar threshold, commonly $100,000 in annual revenue. Marketplace platforms like Etsy and Amazon handle sales tax collection in most states. Sell through your own website and the responsibility falls on you.
Insurance Your Homeowner’s Policy Won’t Cover
Homeowner’s insurance almost certainly does not cover claims arising from a business you operate out of your home. A business pursuits endorsement provides liability coverage only if you’re someone else’s employee, not if you own the business. If a customer has an allergic reaction or gets sick from your product, you’re personally exposed unless you carry separate coverage.
Product liability insurance for food businesses covers bodily injury and property damage claims tied to products you manufacture and sell. It pays for legal defense and any judgments. Common claims include allergic reactions from undisclosed allergens and foodborne illness. Policies for small food businesses are available through specialty programs and are not prohibitively expensive at low volume. A single serious allergic reaction claim could wipe out years of cottage food revenue.
What Happens If You Skip the Rules
Operating without required permits is a state-level violation in most cases, with penalties ranging from fines to cease-and-desist orders to misdemeanor charges depending on the jurisdiction. Consequences escalate sharply if you’re selling interstate without proper FDA registration.
Federal law prohibits introducing adulterated or misbranded food into interstate commerce.15Office of the Law Revision Counsel. 21 USC 331 – Prohibited Acts A first violation can bring up to one year in prison, a fine of up to $1,000, or both. A prior conviction, or a court finding that you intended to mislead buyers, raises the penalties to up to three years in prison and fines up to $10,000.16Office of the Law Revision Counsel. 21 USC 333 – Penalties Federal authorities can also seize your products and seek a court injunction shutting down your operation.
These federal penalties exist primarily for interstate violations and genuinely dangerous conduct. A cottage food baker selling cookies at a local farmers’ market without updating a registration is more likely to face a warning letter and a small fine from the county health department. But the risk scales with the seriousness of the violation, and selling unlabeled allergens or shipping uninspected meat across state lines puts you in territory where federal enforcement becomes realistic.