What Requires a License and What Doesn't

Whether you need a license depends on what you're making, where you're making it, and who you're selling it to. Most home cooks don't need a license to cook for family or friends. But the moment you sell food—even from your kitchen—most states require some form of permission, though the rules vary widely.

The key dividing line is non-potentially hazardous foods versus potentially hazardous foods. Non-potentially hazardous foods like jams, baked goods, granola, and dried herbs can often be made in a home kitchen and sold without a license in many states under what's called a "cottage food" exemption. Potentially hazardous foods—anything that needs refrigeration to stay safe, like cream pies, chicken salad, or canned low-acid foods—almost always require a licensed commercial kitchen and a food handler's permit.

Your state's health department sets the rules, not the federal government. What's allowed in California differs from what's allowed in Texas or New York. Some states have generous cottage food lists; others have almost none. Your county or city may have stricter rules than the state allows.

Key Takeaways

  • Cooking for family and friends requires no license, but selling food usually does, even in small amounts.
  • Non-potentially hazardous foods like baked goods and jams may be made in a home kitchen and sold without a license in many states under cottage food exemptions.
  • Potentially hazardous foods like cream fillings, meat dishes, and anything requiring refrigeration require a licensed commercial kitchen and a food handler's permit in nearly all states.
  • Your state health department website lists which foods are allowed under cottage food exemptions and what paperwork you need for commercial sales.
  • Even if a food is allowed, you may need to register with your county, label your product with your name and address, and keep records of where you source your ingredients.

How to Find Your State's Specific Rules

Start with your state health department's website. Search for "cottage food exemption" or "home-based food operation" along with your state name. Most states have a PDF or page listing exactly which foods you can make at home and sell without a license.

If your state allows home food production, the list usually includes items like baked goods (bread, cookies, cakes), jams and jellies, granola, dried herbs, popcorn, and candy. Some states add honey, nut butters, or dried pasta. The list almost never includes anything that spoils without refrigeration or anything that's canned using a water bath or pressure canner.

Write down or print the list. Many people assume their product is allowed and discover too late that it isn't. For example, some states allow homemade granola but not homemade trail mix (because of the nuts), or allow jam but not fruit butter.

What You Need to Do If Your Food Is on the Allowed List

Even if your state allows you to make a food at home, you usually still need to register or notify your local health department. This is not the same as getting a license—it's often free or costs under $50—but it's a legal requirement in most states.

You'll also need to label your product. The label must include your name and address (not a P.O. box), the product name, the date it was made, and a list of ingredients. Some states require allergen warnings even for home-based foods. Check your state's labeling rules before you print labels.

Keep records of where you buy your ingredients. If someone gets sick and traces it back to your product, the health department will ask where the flour, eggs, or other ingredients came from. Buy from grocery stores or food suppliers, not from bulk bins at farmers markets, because you need to be able to prove the source.

When You Need a Commercial Kitchen and a License

If you want to make potentially hazardous foods, or if your state doesn't allow your product to be made at home, you need a licensed commercial kitchen. This is a kitchen that meets health code standards—separate from a residential kitchen, with commercial-grade equipment, separate handwashing stations, and regular health inspections.

You can rent time in a commercial kitchen by the hour. Many cities have shared-use kitchens, church kitchens, or restaurant kitchens that rent space to home food entrepreneurs. Expect to pay $15 to $50 per hour, depending on your location and the kitchen's equipment.

Once you're using a commercial kitchen, you'll need a food handler's permit (usually $10 to $50, valid for three years) and a business license from your city. You may also need a food service license from your county health department, which involves an inspection and costs $100 to $500 per year depending on what you're making.

Labeling, Liability, and Insurance

Even for allowed home foods, your label must be accurate. If you say "made in a home kitchen" or "not inspected by the health department," you must include that statement. Some states require it; others don't, but it's good practice and protects you legally.

Consider liability insurance if you're selling food. Homeowners insurance usually doesn't cover a home-based food business. A general liability policy for a small food business costs $300 to $800 per year and covers you if someone claims they got sick from your product. It won't cover negligence on your part, but it covers accidents and false claims.

Keep records of every batch you make—the date, ingredients, where they came from, and who you sold it to. If a customer reports an illness, you need to be able to trace the product back to its source. This also helps you improve your process and catch problems early.

What Happens If You Sell Without a License

Selling food without the required license or registration is illegal in all states. Penalties vary. Some states issue a warning for a first offense; others fine you $100 to $500 or more. Repeat violations can result in criminal charges, though this is rare for small home operations.

More practically, if a customer gets sick and reports you, the health department will investigate. If you don't have a license or registration, you'll be shut down when ready and may be required to recall your product. If you do have proper registration and follow the rules, the investigation is less likely to result in legal action against you.

Selling through social media or word of mouth doesn't make it legal. The health department doesn't care how you market your product—only whether you have the right license or exemption for what you're making.

Frequently Asked Questions

Can I sell baked goods from my home kitchen?

In most states, yes—bread, cookies, cakes, and similar baked goods are usually on the cottage food exemption list. But you must check your specific state's list, register with your local health department, and label your product with your name and address. A few states don't allow any home-based food production, so verify before you start.

Do I need a license to sell jam or jelly?

Most states allow jam and jelly to be made at home without a license, as long as you use proper canning methods and register with your health department. Check your state's list to confirm, and follow tested recipes from the USDA or National Center for Home Food Preservation to may support safety.

What if I want to sell food at a farmers market?

Farmers markets have their own rules, set by the market manager and your state. Some allow only products on the cottage food exemption list; others require a full food service license. Contact the farmers market manager before you explore—they'll tell you exactly what you need.

Can I make food in a church or community kitchen and sell it without a license?

Using a commercial kitchen doesn't exempt you from licensing. If you're making a potentially hazardous food or a food not on your state's exemption list, you still need a food handler's permit and a food service license, even if you're renting kitchen space. The commercial kitchen just allows you to legally make the product.

How much does a food handler's permit cost?

Food handler's permits typically cost $10 to $50 and are valid for three years. Some counties include it in a general food service license, which costs more ($100 to $500 per year). Costs vary by location, so contact your county health department for the exact fee in your area.