Under the cottage food laws in Arkansas, you can prepare and sell certain shelf-stable homemade foods directly from your home without a state license, permit, or kitchen inspection. The rules come from the Arkansas Food Freedom Act, and they focus on what you sell, how you label it, and the taxes you owe, rather than on vetting your kitchen.1Justia. Ark. Code Ann. § 20-57-503
What You Can and Cannot Sell
The law only covers foods that do not require time or temperature control for safety, often called non-TCS foods. In practice, that means shelf-stable items like certain baked goods, jams, and jellies.1Justia. Ark. Code Ann. § 20-57-503
These products are specifically excluded and cannot be sold under the home-based rules:2Justia. Ark. Code Ann. § 20-57-504
- Meat and meat products
- Poultry and poultry products
- Seafood and seafood products
- Any other food requiring time or temperature control for safety
If a product needs refrigeration or hot-holding to stay safe, it falls outside what you can produce at home for sale.
Selling Without a License or Inspection
Compliant homemade food and drink products are exempt from the state’s usual licensing, certification, and inspection requirements.2Justia. Ark. Code Ann. § 20-57-504 You do not need a health department permit for your home kitchen, and there is no scheduled inspection. The Department of Health still has authority to step in if a foodborne illness is suspected or if a product is misbranded or unsafe.
Arkansas is more generous than most states about where you can sell. The law specifically allows cottage food products to move through third-party vendors, including retail shops and grocery stores, so long as the buyer is an informed end consumer.2Justia. Ark. Code Ann. § 20-57-504 Direct sales, online sales, and shelf space in a store are all on the table.
Labeling and the Required Disclaimer
Every packaged product needs a label with specific information. For bulk or online sales, the same information can appear on a placard or website instead. The label must include:3Justia. Ark. Code Ann. § 20-57-505
- Your name, address, and telephone number
- The common or usual name of the product
- The date the product was manufactured, produced, or processed
- A complete ingredient list in descending order of predominance by weight
- The required disclaimer about inspection and allergens
The disclaimer language is fixed. It must read: “This product was produced in a private residence that is exempt from state licensing and inspection. This product may contain allergens.”3Justia. Ark. Code Ann. § 20-57-505 You are not required to list each major allergen by name, but the “may contain allergens” phrase has to appear.
Local Rules, HOAs, and Leases
Cities and counties cannot prohibit or regulate the production and sale of homemade food or drink products. State law preempts them.4Justia. Ark. Code Ann. § 20-57-507 A local zoning board generally cannot shut down a home-based cottage food business.
That protection runs against governments, not private parties. A homeowners’ association, condo board, or landlord can still restrict business activity through bylaws or a lease. Read those documents before you start selling, because a private contract violation is a separate problem from state compliance.
Sales Tax and Self-Employment Tax
The licensing exemption does not cover taxes. Before you start selling, get a gross receipts tax permit from the Department of Finance and Administration so you can collect and remit state sales tax.5Justia. Ark. Code Ann. § 26-52-201 Mishandling sales tax can trigger penalties and interest on what you owe.6Justia. Ark. Code Ann. § 26-18-208
On the federal side, if your net earnings from the business reach $400 or more in a year, you generally owe self-employment tax for Social Security and Medicare on top of regular income tax.7IRS. Self-Employment Tax (Social Security and Medicare Taxes) Keep clean records of sales and expenses from day one.
What Happens If You Break the Rules
The state can detain, embargo, or destroy food that is unsafe or misbranded, which often applies when a product is “adulterated” or made under unsanitary conditions.8Justia. Ark. Code Ann. § 20-56-216 Beyond losing inventory, violating state food laws is a misdemeanor and can carry a fine of up to $500, up to one year in jail, or both.9Justia. Ark. Code Ann. § 20-56-205