To legally sell prepackaged food from home in California, you register your kitchen as a Cottage Food Operation (CFO) with your local environmental health department, limit yourself to shelf-stable products on the state’s approved list, complete a food handler course and a cottage food operator training, label every package to state and federal specs, and stay under your class’s annual sales cap. Everything else about running the business follows from those pieces.
What You Can Actually Make
The program is built around one rule: only “nonpotentially hazardous” foods. In plain terms, that means shelf-stable items that stay safe at room temperature. Anything that needs refrigeration to prevent bacterial growth is out.
The California Department of Public Health publishes an official approved list, most recently updated in January 2026, covering ten categories:1California Department of Public Health. Approved Cottage Food List
- Baked goods without cream, custard, or meat fillings (breads, cookies, brownies, fruit pies, tortillas, muffins, donuts)
- Candy and confections (fudge, toffee, caramels, chocolate-covered nonperishables, marshmallows without eggs, freeze-dried candies)
- Extracts containing at least 35% food-grade alcohol
- Dried, dehydrated, and freeze-dried foods (granola, trail mixes, dried fruit, baking mixes, roasted coffee, tea, pasta, herb blends, seasoning rubs)
- Frostings, icings, fondants, and gum pastes without eggs, cream, or cream cheese
- Pure honey and sorghum syrups
- Jams, jellies, preserves, and fruit butters made with federally approved fruits
- Roasted or pasteurized nuts, nut mixes, and nut butters
- Powdered beverage mixes
- Vinegars and mustards (mustards cannot contain eggs)
If your product isn’t on that list, you can’t sell it under a CFO. The common non-starters are anything with meat, anything with dairy fillings like custard or cream cheese frosting, eggs, and acidified foods like pickles or salsas. Pumpkin pie is specifically excluded even though fruit pies are allowed, because pumpkin filling supports bacterial growth at room temperature.
Class A or Class B: Where You Sell and How Much
California splits cottage food operations into two tiers based on your sales channels and revenue.
Class A is direct-to-consumer only. You sell straight to the buyer at farmers’ markets, community events, from your home, or through online orders shipped or delivered. You cannot place products on a store shelf for resale. The statutory annual sales cap is $75,000 before inflation adjustment.
Class B allows both direct sales and indirect sales through retail stores, restaurants, or other businesses that resell to the end customer. The statutory cap is $150,000 before adjustment.
Both caps are adjusted annually for inflation using the California Consumer Price Index. For 2025, the adjusted limits were $86,206 for Class A and $172,411 for Class B.2California Department of Public Health. Cottage Food Operation Adjusted Gross Annual Sales Limit CDPH posts updated figures each January, so pull the current year’s numbers before you plan revenue.
One employee limit applies to both classes: you can have one full-time equivalent employee beyond yourself. Household members and delivery drivers don’t count toward that cap.3California Legislative Information. California Health and Safety Code HSC 113758
Both classes can sell through the internet, by phone, or through any digital method, with fulfillment in person, by mail, or through a third-party delivery service. The single door Class A does not open is placing product on someone else’s shelf.
How to Register and Get Trained
Registration runs through your local environmental health department, and the process depends on your class. A Class A operator self-certifies by completing a checklist confirming the home kitchen meets the requirements and submitting it. A Class B operator applies for a permit, which triggers an in-person kitchen inspection before the permit is issued.4California Department of Public Health. Cottage Food Operations Application fees vary by county, typically running from roughly $40 to $160, with Class B costing more because of the inspection. Some counties charge separate annual renewal fees.
Two training pieces are required of every CFO operator. You need a California Food Handler Card, earned by completing an approved course and passing a test; the card is valid for three years. You also need to complete a state-approved cottage food operator training course within three months of registration or permitting.4California Department of Public Health. Cottage Food Operations Any employees who handle food need their own food handler cards.
Kitchen Rules When You’re Producing
The law imposes specific conditions on the kitchen while cottage food is being made, and they apply to Class A operators too, not just Class B kitchens that get inspected.
During production, no pets, infants, or small children are allowed in the kitchen. No domestic activity happens at the same time: no laundry, no family cooking, no household cleaning. Food contact surfaces have to be cleaned and sanitized. You need a handwashing setup with warm water of at least 100°F, soap, and paper towels. Handwashing dishes follows a wash-rinse-sanitize sequence with approved sanitizer concentrations, and dishwashers must reach 160°F on utensil surfaces. Chemical test strips are required to verify sanitizer levels.
Class A kitchens generally don’t see inspectors unless someone complains, but local health inspectors can access a Class A kitchen without prior arrangement if they receive a consumer complaint about unsafe food or a suspected violation. Class B kitchens face routine annual inspections.
Labeling Every Package Correctly
Every prepackaged cottage food product needs a label that meets both state and federal standards. The one requirement unique to cottage food is a consumer notice reading “Made in a Home Kitchen” or “Repackaged in a Home Kitchen,” whichever applies, printed in at least 12-point type on the front of the package.5California Department of Public Health. Labeling Requirements for Cottage Food Products
The label also has to include:
- The common or descriptive name of the product
- Your CFO’s business name, city, and zip code (if the business isn’t listed in a phone directory, include the full street address)
- Ingredients listed in descending order by weight
- Net quantity by count, weight, or volume, stated in both English (pounds/ounces) and metric (grams/milliliters) units
- An allergen declaration for any of the major allergens (milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, or soybeans), either within the ingredient list or in a separate statement next to it
- Your permit or registration number and the name of the local enforcement agency that issued it
Allergens are the highest-stakes item on that list. If a buyer reacts to something your label failed to declare, you face both regulatory action and civil liability.
Business License, Sales Tax, and Self-Employment Tax
A CFO is a business, and three obligations sit outside the CDPH framework.
Most California cities and counties require a business license or home occupation permit for any home-based business. Fees are usually modest. Some cities’ home occupation rules limit signage, customer traffic, or parking, so check with your city or county clerk before you open.
California generally requires sellers of tangible goods to hold a seller’s permit from the California Department of Tax and Fee Administration. Food products are typically subject to sales tax in California unless they qualify for an exemption, and many cottage food items (baked goods, candy, snack mixes) don’t qualify for the grocery exemption that applies to staple foods sold in stores. Confirm with CDTFA whether your specific products require you to collect and remit sales tax.
On the federal side, if your net self-employment income reaches $400 or more in a tax year, you owe self-employment tax (Social Security and Medicare) on top of income tax.6Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) You’ll report CFO income and expenses on Schedule C and calculate self-employment tax on Schedule SE.
When a Cottage Food Permit Won’t Cover You
If your product needs refrigeration or you want to sell prepared meals, the CFO won’t work. California has a separate program, the Microenterprise Home Kitchen Operation (MEHKO) created under AB 626, that allows individuals to sell meals with perishable ingredients from a home kitchen.7California Department of Public Health. Microenterprise Home Kitchen Operations MEHKO has its own permit, sales limits, and operating rules, and not every county has opted in. If you’re thinking about salsas, meals, or anything with meat or dairy, that’s the program to look at.
If you outgrow the CFO caps or need higher production volumes, the next step is usually renting time in a licensed commercial kitchen or building out a permitted food facility under the California Retail Food Code, which comes with its own permits, inspections, and facility requirements.