Starting a Cottage Food Business in California: Class A vs. Class B, Approved Foods and Labels

Updated October 23, 2026 · General information, not legal or professional advice.

California's Cottage Food Operations law, first passed as AB 1616 in 2012 and updated several times since, lets people prepare certain foods in their home kitchens and sell them to the public. It is how many bakers, jam makers and confectioners test a business idea before investing in a commercial kitchen. This guide explains how it works. Rules are set by the state but administered by your county (or city) environmental health department, so confirm local details before you start.

What a cottage food operation is

A cottage food operation (CFO) is an enterprise run in the private home of the operator, with a limited number of full-time-equivalent employees (not counting family or household members), that produces foods on the state's approved list and stays within an annual gross sales limit that is adjusted for inflation. Check CDPH or your county for the current sales limit.

Approved foods only

Only foods on the Approved Cottage Foods list published by the California Department of Public Health may be made. These are non-potentially hazardous foods, meaning they do not require refrigeration to stay safe. The list includes many items, such as:

Baked goods without cream, custard or meat fillings, such as breads, cookies, biscuits, churros and many pastries.
Candy and confections such as brittle, toffee and chocolate-covered nonperishable items.
Fruit jams, jellies and preserves meeting specific standards, and fruit butters.
Dried fruit, dried pasta, granola, cereals and trail mixes.
Nut butters, roasted nuts, popcorn and certain other snack foods.
Some herb blends, dried mixes, vinegars and honey.

Foods that need refrigeration, such as cheesecakes, cream pies, custards, meat products and most beverages, are not allowed. Always check the current official list; CDPH updates it from time to time.

Class A vs. Class B

Class A (registered): may sell only directly to consumers, for example from home, at certain events, at farmers markets where allowed, or by direct delivery. Class A operations register with the county and complete a self-certification checklist. They are generally not routinely inspected but may be inspected in response to a complaint.
Class B (permitted): may sell directly to consumers and also indirectly through third-party retail food facilities, such as cafes, markets and restaurants, within the county or other counties that allow it. Class B operations need a permit and an initial inspection, and usually an annual inspection.

Recent changes to state law have expanded how CFOs can sell, including allowing some sales by mail or delivery within California. Ask your county what methods are allowed.

Training requirement

Within three months of registering or getting a permit, the operator must complete a food processor course approved by CDPH, and the training must be renewed periodically. Other people who handle food in the operation need the same training or must follow the rules set out in the law. The course covers sanitation, hygiene, labeling and safe food handling.

Labeling rules

Cottage food products must be labeled in compliance with federal labeling rules, with additional California requirements. Labels generally must include:

The words "Made in a Home Kitchen" in the required type size on the principal display panel.
The name of the CFO, the registration or permit number, and the county that issued it.
The common name of the product.
The net quantity.
Ingredients in descending order by weight, including declared major food allergens.

CDPH provides a labeling guide for cottage foods. If you make nutrient or health claims, additional federal rules apply.

Operating rules in your kitchen

No preparation of cottage foods while other domestic activities, such as family meals, are happening in the kitchen.
No infants, small children or pets in the kitchen during preparation.
Ingredients and equipment kept clean and separate from personal-use items where practical.
No one with a contagious illness may prepare food.
Water supply from an approved source; private wells may need testing.

Step-by-step: getting started

Read CDPH's cottage food pages and your county environmental health department's CFO page.
Choose Class A or Class B based on how you want to sell.
Complete the registration or permit application and pay the county fee.
Check local zoning; many cities require a home occupation permit or business license, and state law limits how cities can restrict CFOs.
Complete the food processor course within three months.
Design compliant labels.
Register for a seller's permit with the California Department of Tax and Fee Administration if your products are taxable. Many food products are exempt from sales tax, but some, such as hot prepared food or certain items sold for consumption on site, may be taxable.
Keep records of sales to show you stay under the gross sales limit.

When you outgrow your home kitchen

If you want to sell refrigerated foods, expand beyond the sales limit, or sell wholesale more broadly, you will need a commercial kitchen and the right permits. Options include renting time in a shared-use commissary kitchen, or obtaining a Processed Food Registration from CDPH for manufacturing packaged foods. California also allows Microenterprise Home Kitchen Operations (MEHKOs) in counties and cities that opt in, which let home cooks sell prepared meals under separate rules.

Should you go to culinary school first?

You do not need culinary training to run a CFO, but a baking and pastry program can improve consistency, scaling and costing, and courses in small business management help with pricing and marketing. Read pastry vs. culinary arts and careers after culinary school. Browse programs in Los Angeles, Sacramento, Fresno, San Diego and Santa Rosa.

Pricing and business basics

Many new cottage food operators underprice their products. Calculate the cost of ingredients, packaging, labels, fees and your time for each batch, and compare with similar products in your area. Keep simple bookkeeping from the first sale; you will need it for taxes and to show you are within the gross sales limit. Small Business Development Centers in California offer free advising on pricing, marketing and recordkeeping. Selling at farmers markets requires following the market's and county's rules for cottage food sellers, which may include a separate event or market permit.

Frequently asked questions

Can I sell cakes with buttercream frosting? It depends on the recipe. Frostings that do not require refrigeration may be allowed; cream cheese frostings and whipped cream generally are not. Check the approved list and ask your county.

Can I sell online? You can usually take orders online. Whether you can ship depends on your class and current state rules.

Do I need insurance? It is not required by the CFO law, but many operators buy product liability insurance, and some markets and retailers require it.

Can I hire help? The law allows a limited number of full-time-equivalent employees, not counting family and household members. Everyone who prepares food should follow the same hygiene and training rules you do.

What if my county has questions about my recipe? Environmental health staff can tell you whether a product fits the approved list. Ask before you print labels or take orders, because changing a product later costs time and money. Keeping written recipes with exact ingredients also makes allergen labeling easier and more accurate.

Official sources: CDPH Cottage Food Operations; California Department of Tax and Fee Administration; FDA Food Labeling.

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