Do You Need a License to Sell Food in Michigan?

Whether you need a license to sell food in Michigan depends on what you’re selling and how. Home bakers and other small producers who make non-potentially hazardous foods and sell directly to consumers can operate without a license under Michigan’s Cottage Food Law, as long as annual gross sales stay under $50,000 (or $75,000 if every item sells for $250 or more).¹ Everyone else — restaurants, food trucks, caterers, grocery delis, wholesalers — needs a license under Michigan’s Food Law (Act 92 of 2000), issued by either the Michigan Department of Agriculture and Rural Development (MDARD) or a local health department.²

When You Can Skip the License: Cottage Food

Michigan’s cottage food rules, updated effective March 24, 2026, let you sell certain homemade products without a license. The food has to be non-potentially hazardous, meaning it doesn’t need refrigeration to stay safe. Baked goods, jams and jellies, dried fruit, candy, granola, dry mixes, vinegar, and dried herbs all qualify. Anything requiring temperature control for safety — meat, dairy, canned vegetables, custard-filled pastries — does not, and selling those products requires a full license no matter how small your operation.¹

All preparation and storage has to happen in the kitchen of your primary home. The $50,000 cap applies per person at a given residence, and starting October 1, 2026, MDARD may adjust the caps annually for inflation.

How You’re Allowed to Sell

Cottage food has to move directly from you to the consumer. The 2026 amendments broadened what “direct” means: you can now take internet orders, mail orders, or use a third-party delivery platform, provided the buyer has a chance to interact with you first — face-to-face, by phone, or by another method the law recognizes. Internet and delivery-platform sales must stay within Michigan.¹

Consignment and wholesale remain off-limits. You can’t place products in a grocery store or restaurant for resale, and you can’t sell bulk to a distributor. Doing so ends the exemption and triggers the standard licensing requirement.

Labeling

Every cottage food product has to carry a compliant label. The statute requires:

The disclaimer “Made in a home kitchen that has not been inspected by the Michigan department of agriculture and rural development,” in at least 11-point font and a contrasting color.
The business name and the address where you operate.
A complete ingredient list in descending order by weight.
Net weight or volume.

Selling without a compliant label can end the exemption on its own.¹ Federal allergen rules apply too. Under the Food Allergen Labeling and Consumer Protection Act and the FASTER Act, labels must identify any of the nine major allergens — milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame — either in parentheses after the ingredient or in a “Contains” statement.³

Who Licenses Your Business: MDARD or Local Health Department

If cottage food rules don’t fit, the next question is which agency you apply to. MDARD licenses retail food establishments, where most food is sold for consumption off the premises. That covers grocery stores, convenience stores, food warehouses, large-scale food manufacturers, wholesale food processors, and vending operations.⁴

Local health departments license food service establishments, where people eat on-site or pick up prepared meals. Restaurants, food trucks, caterers, and bars go through the county. For businesses that straddle categories, such as a grocery store with a deli and seating, the dominant part of the operation usually determines the lead regulator, and MDARD can transfer authority to or from a local health department based on which side drives most of the activity.

How to Get the License

Local Clearances First

Before your application moves forward, your location has to clear local zoning, building codes, and any other municipal requirements. Michigan law doesn’t excuse licensees from local permits or regulations that don’t conflict with the Food Law.⁵ If the building needs a safe water supply or an approved sewage system, those have to be in place; MDARD can limit or deny a license when either is inadequate.

Plan Review

You submit a plan review package to your regulator before any construction, remodeling, or conversion begins. Starting work without approved plans can result in a stop-work order.⁶ Submissions include scaled floor plans (typically one-quarter inch per foot) showing equipment layout, plumbing, ventilation, and the location of every handwashing sink, food-prep sink, and warewashing station. You also provide equipment specifications and standard operating procedures for sanitation, cleaning, and equipment maintenance. The agency may request changes before clearing you to build.

Pre-Opening Inspection

Once construction is done, a sanitarian visits to confirm the facility matches the approved plans. They check hot water temperatures, refrigeration, handwashing stations, and signage. Passing the inspection produces either a temporary permit or a full operating license.

Fees and Renewal

MDARD’s fee schedule depends on the type of operation:

Retail food establishment: $186
Limited wholesale food processor: $186
Food warehouse: $186
Extended retail food establishment: $471, plus a $197 plan review fee for new locations
Wholesale food processor: $471
Transitory food unit: $159, plus a one-time $197 plan review fee and two $90 inspection fees per licensing year
Temporary food establishment: $73

Vending operations pay $186 plus a bank fee ranging from $500 (1–20 banks) up to $3,000 (76 or more banks).⁴

Local health department fees for restaurants, food trucks, and caterers are set by each jurisdiction and tend to run higher. Local plan review alone can add several hundred to over a thousand dollars depending on facility size.

All Michigan food establishment licenses except temporary licenses expire April 30 each year. Submit renewals at least 30 days before expiration. If your renewal is postmarked May 1 or later, MDARD charges a $150 late fee.⁷

Selling at Festivals and Fairs

You don’t need a full food establishment license to sell at a single event, but you do need a temporary license. A temporary food establishment can operate up to 14 consecutive days under one license.⁷ The MDARD fee is $73, and state or county fair temporary licenses cost the same per fair.⁴

Running a mobile unit that moves between events throughout the year usually calls for a transitory food unit license instead, which costs more but covers continuous operation rather than a single event.

Food Manager Certification

Not every licensed food business needs a certified manager, but most food service operations do. Under state law, these establishments must employ at least one managerial employee certified through a program accredited by the American National Standards Institute (ANSI) and the Conference for Food Protection:

Food service establishments (restaurants, bars, food trucks, schools, hospitals), except those operating under a temporary license
Extended retail food establishments, typically grocery stores with a deli and seating
Food service operations inside a retail grocery

Certification requires passing an ANSI-accredited exam such as ServSafe, with renewal every five years.⁸ MDARD recognizes more than a dozen accredited providers.⁹ Exams generally run $70 to $120. A certification earned anywhere in Michigan has to be recognized statewide; you don’t need a separate credential for each county.

Cottage food operations, standard retail food establishments (such as a packaged-goods convenience store without food service), and temporary food establishments are exempt from the certification requirement.

What Skipping the License Costs

Operating without the required license carries real penalties. MDARD can impose an administrative fine of up to $500 for a first offense and up to $1,000 for each later offense, plus the actual investigation costs. The law caps total administrative fines at $4,000 per location in a 12-month period for businesses with annual gross receipts of $500,000 or less, and $8,000 per location for larger operations.¹⁰

Fines aren’t the only tool. The Food Law’s penalty chapter also allows criminal charges and product enforcement actions beyond the administrative fine section. MDARD can issue a written warning for minor violations when the agency believes notice adequately protects the public interest, but running without a license when one is required leaves little room for that kind of leniency.

What the Exemption Doesn’t Cover

The cottage food exemption only covers licensing. It doesn’t address sales tax: MDARD advises cottage food operators to contact the Michigan Department of Treasury for guidance on which products are taxable. Prepackaged foods not intended for immediate consumption generally aren’t subject to sales tax, but other products may be.¹¹ Insurance isn’t a licensing requirement either, but farmers markets and event organizers often require proof of liability coverage before letting you set up, so even unlicensed cottage food operators may need at least a basic policy.

1
Michigan Legislature. Michigan Compiled Laws 289.4102 – Cottage Food Operation Exemption
2
Michigan Legislature. Michigan Compiled Laws Act 92 of 2000 – Food Law
3
U.S. Food and Drug Administration. Food Allergies
4
State of Michigan. License Type Guide with Associated Fees
5
Michigan Legislature. Michigan Compiled Laws 289.3113 – Local Regulation
6
State of Michigan. Plan Review – Food – Local Health Department Resources
7
State of Michigan. License Expiration Dates
8
Michigan Legislature. Michigan Compiled Laws 289.2129 – Certification of Managerial Employee
9
State of Michigan. Food Manager Certification
10
Michigan Legislature. Michigan Compiled Laws 289.5105 – Administrative Fines
11
State of Michigan. Michigan Cottage Foods Information