"What can I sell under Class A vs Class B in California? The state website is so confusing!"
โ Real question from a California cottage food producer
TL;DR: California Cottage Food Laws Quick Answer
- Allowed Products: Baked goods, jams, granola, honey, and more
- Where to Sell: Class A: direct only | Class B: direct + wholesale to stores/restaurants
- Key Requirement: Class B requires home inspection; Class A does not
Last verified: February 2026 against California CDPH Cottage Food Operations and HSC ยง113758โ114365.5
If you've ever felt overwhelmed trying to understand California's cottage food laws, you're not alone. We analyzed hundreds of questions from California producers and created this simple, complete guide to get you started legally and confidently.
๐ California Cottage Food at a Glance
- Revenue Caps: Class A: $75,000 base ($88,878 inflation-adjusted, effective January 1, 2026) | Class B: $150,000 base ($177,756 inflation-adjusted, effective January 1, 2026)
- Allowed Products: Baked goods, jams, granola, honey, and more (see full list below)
- Where to Sell: Direct to consumers (Class A) or direct + wholesale (Class B)
- Training: ANSI-accredited food handler course required (HSC ยง114365.2(d)), must complete within 3 months of registration, renew every 3 years
- Inspection: Not required for Class A; required for Class B
โ Good news: California has one of the most producer-friendly cottage food laws in the country!
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Table of Contents
- Overview of California Cottage Food Law
- Class A vs Class B: What's the Difference?
- Allowed Products in California
- Prohibited Products
- Revenue Caps and Limitations
- Labeling Requirements
- Registration Process
- Where You Can Sell
- Kitchen Requirements
- Common Questions (FAQs)
- Get Started Today
What Is California's Cottage Food Law?
Key dates:
- September 2012: AB 1616 (California Homemade Food Act) signed into law
- January 1, 2013: AB 1616 takes effect โ cottage food operations legalized
- September 2021: AB 1144 signed, raising revenue caps and adjusting for inflation
- January 1, 2022: AB 1144 takes effect with updated revenue caps
What Makes California's Law Great
California offers two types of cottage food operations (CFOs), giving you flexibility to start small (Class A) or go bigger with wholesale access (Class B).
Key benefits:
- โ No expensive commercial kitchen required for Class A
- โ Both classes updated annually for inflation
- โ Can sell online within California
- โ Wide variety of allowed products
- โ Food handler course is straightforward and affordable (ANSI-accredited, required for all CFOs)
Class A vs Class B: What's the Difference?
California is one of the few states with a two-tier system. Here's how they compare:
| Feature | Class A | Class B |
|---|---|---|
| Home Inspection | โ Not required | โ Required |
| Where to Sell | Direct sales only | Direct + wholesale |
| Sales Venues | Farmers markets, home, online, events | All Class A venues + stores/restaurants |
| Start-Up Difficulty | โญ Easy | โญโญ Moderate |
| Best For | Part-time, testing the market | Full-time, scaling up |
๐ฐ Revenue caps adjust annually for inflation, so these numbers increase slightly each year.
Which Should You Choose?
Choose Class A if:
- โ You're just starting out
- โ You want to sell at farmers markets and online
- โ You don't want a home inspection
- โ You're doing this part-time
Choose Class B if:
- โ You have wholesale buyers lined up (stores, restaurants, coffee shops)
- โ Your kitchen can pass inspection
- โ You're treating this as a full-time business
- โ You want to scale quickly
๐ก Pro Tip: Most producers start with Class A to test their products and market, then upgrade to Class B once they hit the revenue cap or secure wholesale accounts.
What Products Can I Sell Under California Cottage Food Laws?
California cottage food law allows a wide variety of products. The key rule: products must be non-potentially hazardous foods (also called non-TCS foods) that don't require refrigeration for safety.
โ Always Allowed (Both Class A & B)
Baked Goods:
- Breads, rolls, biscuits
- Cookies, brownies, bars
- Cakes (without cream, custard, or meat fillings)
- Pastries, scones, muffins
- Pies with fruit fillings only
- Donuts (cake-style, unfilled)
Preserved Foods:
- Jams, jellies, preserves
- Fruit butters (apple, pumpkin, etc.)
- Dried fruit
- Dehydrated vegetables
- Dried pasta
Confections:
- Candies, toffee, brittles
- Fudge (without cream cheese)
- Chocolate-covered items (nuts, pretzels, fruit)
- Marshmallows
Snacks & Cereals:
- Granola, trail mix
- Roasted nuts, nut butters
- Popcorn (including flavored)
- Cereal bars, energy balls
- Crackers, chips
Condiments & Seasonings:
- Honey
- Maple syrup
- Dried herbs and herb blends
- Spice mixes, dry rubs
- Tea blends, coffee blends
- Flavored salts, sugars
Baking Mixes:
- Dry mixes (cake, cookie, brownie, pancake)
- Biscotti or other dry baked goods
โ ๏ธ Important: Your county must approve your specific product list during registration. Always check with your local environmental health department before adding new products.
Product Guides for Cottage Food Sellers
Ready to start selling? These comprehensive guides cover everything from equipment and startup costs to pricing and marketing:
Baked Goods:
- How to Sell Cakes from Home โ Startup costs, pricing, and decorating tips
- How to Sell Brownies from Home โ Equipment, recipes, and market strategies
- How to Sell Bread from Home โ Bread baking equipment and sales venues
- How to Sell Sourdough from Home โ Starter maintenance, pricing, and scaling
- How to Sell Homemade Bread โ Complete artisan bread business guide
- How to Sell Cookies from Home โ Best-selling varieties and packaging
Preserves & Condiments:
- How to Sell Jams and Jellies โ Canning basics, pricing, and labeling
- How to Sell Apple Butter โ Production techniques and seasonal sales
- How to Sell Honey from Home โ Beekeeping economics and honey regulations
- How to Sell Herbs from Home โ Growing, harvesting, and drying techniques
Confections & Specialty:
- How to Sell Chocolates from Home โ Tempering, molding, and gift packaging
- How to Sell Fudge from Home โ Temperature control and flavor varieties
- How to Sell Spices from Home โ Sourcing, blending, and packaging
- How to Sell Popcorn from Home โ Caramel corn, kettle corn, flavored varieties
- How to Sell Tamales from Home โ Vegetarian in most states, meat in TCS states
Other Products:
- How to Sell Cut Flowers from Home โ Growing, arranging, and market sales
What Products Are Prohibited Under Cottage Food Laws?
โ NOT Allowed Under Cottage Food
Dairy-Based Items:
- Cheese (any kind)
- Milk-based products
- Cream cheese frostings
- Custards, puddings
- Ice cream
- Yogurt
Perishable/Refrigerated Items:
- Cream-filled pastries
- Pies with cream or custard
- Cheesecakes
- Fresh produce
- Cut fruit or vegetables
- Refrigerated doughs
Meat, Poultry & Seafood:
- Any products containing meat
- Meat pies or pot pies
- Jerky (dried meat)
- Smoked fish
- Canned meat products
Acidified & Fermented Foods:
- Pickled vegetables
- Kimchi, sauerkraut
- Kombucha
- Canned tomatoes or salsa (unless pH-tested)
- Hot sauces
Other Restricted Items:
- Foods that require time/temperature control (TCS foods)
- Low-acid canned goods
- Cannabis-infused products
- Alcohol-infused products (except baked goods where alcohol cooks off)
- Dog treats or pet foods (different regulations)
๐ก Rule of Thumb: If it needs refrigeration to stay safe, it's not allowed under cottage food law.
Revenue Caps and Limitations
- Class A: $75,000 base annual cap โ $88,878 effective January 1, 2026
- Class B: $150,000 base annual cap โ $177,756 effective January 1, 2026
The base figures are set by Cal. Health & Safety Code ยง 113758(a), which requires both to be "annually adjusted for inflation based on the California Consumer Price Index." The adjusted figures above come from CDPH's published adjustment table (2024-2025 CPI, 3.1%).
| Effective | Class A | Class B |
|---|---|---|
| January 1, 2025 | $86,206 | $172,411 |
| January 1, 2026 | $88,878 | $177,756 |
๐ฐ Because the adjustment happens every January, a figure you find elsewhere may be a prior year's. Verify the current one against CDPH's own table: Cottage Food Operation Adjusted Gross Annual Sales Limit (PDF, CDPH Food & Drug Branch).
How Revenue is Calculated
What counts toward your cap:
- โ All gross sales of cottage food products
- โ Shipping fees (if you charge separately)
- โ Online sales
- โ Wholesale sales (Class B)
What doesn't count:
- โ Sales tax collected
- โ Non-food items sold separately (like packaging, t-shirts, etc.)
What Happens If You Exceed the Cap?
If you exceed your revenue cap, you have three options:
- Stop selling for the rest of the calendar year
- Upgrade to Class B (if you're currently Class A)
- Transition to a commercial food facility with a commercial license
๐ป StandScout Tip: Use our sales tracking feature to monitor your progress toward revenue caps and get automatic alerts when you're approaching your limit.
What Are the Labeling Requirements for Cottage Food in California?
Every cottage food product sold in California MUST have a compliant label. This is non-negotiable and inspectors can (and do) check labels at farmers markets.
Required on Every Label:
- Product common name
- Example: "Chocolate Chip Cookies" not "Mom's Famous Treats"
- Ingredients list
- Listed in descending order by weight
- Must include sub-ingredients (e.g., "flour (wheat, malted barley)")
- Example: "Ingredients: Wheat flour, sugar, butter (cream, salt), eggs, chocolate chips (chocolate, sugar, cocoa butter), vanilla extract, baking soda, salt"
- Allergen declaration
- Bold or separate line
- Example: "Contains: Wheat, Milk, Eggs, Soy"
- Common allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans
- Net weight or volume
- Must include both English (pounds/ounces) and metric (grams/kilograms) units
- Your cottage food operation name and address
- Must include name, city, and zip code
- If the CFO is not listed in a current telephone directory, the full street address is required
- A P.O. Box is generally not acceptable
- CFO registration or permit number
- The registration or permit number issued by your county must appear on the label
- Name of the local enforcement agency
- The county environmental health department that issued your registration/permit
- "Made in a Home Kitchen" disclaimer
- Exact wording: "Made in a Home Kitchen" or "Repackaged in a Home Kitchen"
- Must be in a minimum of 12-point type on the principal display panel
- Same for both Class A and Class B
Label Format Example
Sarah's Sourdough Bakery
123 Main St, Sacramento, CA 95814
CFO Registration #12345
County of Sacramento Environmental Health
SOURDOUGH BREAD
Net Wt. 1 lb (454 g)
Ingredients: Wheat flour, water, salt, sourdough starter (wheat flour, water)
Contains: Wheat
Made in a Home Kitchen
Label Approval Process
Your county must approve your labels before you can sell. Submit label designs with your application. If you change your recipe or add products, submit updated labels for approval.
How Do I Register to Sell Cottage Food in California?
California cottage food operations register with their county environmental health department, not the state.
Step-by-Step Registration
-
Your home kitchen's location determines which county you register with
-
Each county has its own environmental health department
-
Search "[Your County Name] California environmental health cottage food"
-
Call or email to request a cottage food application
-
Ask about current fees and timeline
-
Choose Class A or Class B
-
List all products you plan to make
-
Provide label designs for each product
-
Include your home address (this goes on labels)
-
Fees differ significantly by county - Los Angeles is more expensive than rural counties
-
Application form
-
Product list
-
Label designs
-
Payment
-
Any additional county-specific forms
-
County reviews your application and labels
-
They may request changes to labels or product descriptions
-
County inspector visits your home kitchen
-
They check for cleanliness, proper equipment, handwashing sinks
-
Must pass before you can sell
-
You'll get a registration number (goes on your labels)
-
Keep this documentation safe
-
Registration expires every year
-
Renew before expiration to avoid lapse
County-Specific Fees (Examples)
| County | Class A Fee | Class B Fee |
|---|
Fees subject to change. Contact your county for current rates.
Where Can I Sell Cottage Food in California?
Class A Sales Venues
โ Allowed:
- Direct sales from your home (customers pick up)
- Farmers markets (no permit limit, as many as you want)
- Community events (fairs, festivals, swap meets)
- Temporary events (pop-ups, holiday markets)
- Online sales within California (ship to CA addresses only)
- Your own website
- Facebook/Instagram
- Third-party platforms (Etsy, etc.)
โ NOT Allowed for Class A:
- Wholesale to stores
- Wholesale to restaurants or cafes
- Sales to food service establishments
- Out-of-state sales (interstate commerce)
Class B Sales Venues
โ Allowed:
- All Class A venues (direct sales, farmers markets, online)
- Wholesale to retail stores (grocery stores, co-ops, specialty shops)
- Wholesale to restaurants (can be used as ingredients)
- Wholesale to cafes, bakeries, or other food service
โ Still NOT Allowed (even Class B):
- Out-of-state sales (interstate commerce)
- Sales to institutions (schools, hospitals, prisons)
Online Sales Rules (Both Classes)
California cottage food law allows online sales, but with specific rules:
โ You CAN:
- Sell through your own website
- Sell through social media (Facebook, Instagram)
- Use Etsy, eBay, or similar platforms
- Ship to California addresses
- Offer local pickup
- Accept credit card payments
โ You CANNOT:
- Ship out of state (only California addresses)
- Use third-party sellers (like Amazon FBA)
- Sell through food delivery apps (DoorDash, Uber Eats) - grey area
๐ก Pro Tip: Many producers use StandScout's platform to handle online orders, pickup coordination, and real-time inventory updates - all while staying compliant with California cottage food law.
What Kitchen Requirements Must I Meet in California?
Class A Kitchen Requirements
Good news: Class A operations have no inspection requirement. However, you must still follow these rules:
- โ Use your primary domestic residence (where you live)
- โ Keep kitchen clean and sanitary
- โ No pets in kitchen during food prep
- โ Proper handwashing
- โ No smoking in kitchen
- โ Store ingredients properly
- โ Use potable water
- โ Complete and submit a self-certification checklist to your local enforcement agency (county environmental health department)
Best practices:
- Deep clean before each production day
- Keep pets out of kitchen area
- Label and date all ingredients
- Maintain separate storage for cottage food ingredients/products
Class B Kitchen Requirements (Inspected)
Class B operations must pass a kitchen inspection. Inspectors look for:
Required:
- โ Handwashing sink (separate from food prep sink)
- โ Proper lighting
- โ Cleanable surfaces (no porous materials)
- โ Adequate refrigeration (if needed for ingredients)
- โ Thermometers
- โ Covered trash cans
- โ Proper ventilation
- โ Food-grade storage containers
Not Allowed During Inspection:
- โ Pets in kitchen area
- โ Dirty dishes
- โ Personal items on prep surfaces
- โ Peeling paint or damaged surfaces
- โ Open food containers
๐ก Pro Tip: If you're considering Class B, schedule a pre-inspection consultation with your county inspector. They'll tell you exactly what needs to change before the official inspection.
Common Questions About California Cottage Food Law
Q: Do I need a business license?
A: It depends on your city/county. The cottage food registration is separate from a general business license. Many cities require a business license for any business activity, even home-based. Check with your city clerk's office.
Q: Can I sell wholesale to stores with Class A?
A: No. Class A is direct sales only. If you want to wholesale to retail stores, coffee shops, or restaurants, you must register as Class B and pass a home kitchen inspection.
Q: Can I ship my products out of state?
A: No. California cottage food law only allows sales within California. Shipping to other states is considered interstate commerce and requires different (federal) licenses.
Q: Do I need to collect sales tax?
- Register with the California Department of Tax and Fee Administration (CDTFA)
- Collect sales tax from customers
- File quarterly returns and remit tax collected
Q: Can I use a commercial kitchen instead of my home kitchen?
A: Yes, but if you use a commercial kitchen, you're no longer operating under cottage food law. You'd need a commercial food facility license instead, which has different rules and typically higher costs.
Q: Do I need food safety training?
A: Yes. Under HSC ยง114365.2(d), all persons who prepare or package cottage food must complete an ANSI-accredited food handler course within 3 months of registering their CFO. The certification must be renewed every 3 years. This applies to both Class A and Class B operators, as well as any employees or household members involved in food preparation.
Q: Can I make wedding cakes or custom cakes?
A: Yes! Custom cakes are allowed under cottage food law as long as they don't contain prohibited fillings (custard, cream cheese frosting, fresh fruit). Buttercream and fondant are fine.
Q: What if I want to make pickles or hot sauce?
A: Acidified foods like pickles and hot sauce are not allowed under cottage food law due to botulism risk. If you want to make these, you need a commercial food facility license and often must use a certified acidified foods process.
Q: How do I upgrade from Class A to Class B?
A: Contact your county environmental health department, submit a new application for Class B, pay the higher fee, and schedule a kitchen inspection. Once you pass, you can begin wholesale sales.
Q: Can I sell at multiple farmers markets?
A: Yes! There's no limit on how many farmers markets you can attend. Just make sure each market allows cottage food vendors (most do).
Q: Do I need insurance?
Q: Can I hire employees or helpers?
A: Under HSC ยง113758, a cottage food operation may employ one full-time equivalent (FTE) non-family employee in addition to the CFO operator. Family and household members may assist freely and do not count toward this limit. All persons involved in food preparation must complete the required ANSI-accredited food handler course.
Q: What counts toward the revenue cap?
A: Gross sales of cottage food products count. This includes product price plus shipping (if charged). Sales tax collected does not count toward the cap.
How Do I Get Started Selling Cottage Food in California?
Ready to launch your California cottage food business? Here's your action plan:
-
Choose Class A or Class B
-
Decide on your products
-
Research your county's specific requirements and fees
-
Choose your business name
-
Contact county environmental health department
-
Request cottage food application
-
Design your labels
-
Complete application with product list and labels
-
Submit application and pay fee
-
Register for sales tax permit (CDTFA)
-
Set up bookkeeping system
-
Get business license (if required by your city)
-
Wait for county approval
-
For Class B: Schedule and pass inspection
-
Print labels
-
Make your first batch
-
Plan your launch (farmers market, online, etc.)
-
Make your first sales
-
Track revenue carefully
-
Collect customer feedback
-
Adjust and improve
Sources:
- California Department of Public Health Cottage Food Operations - Last verified: February 19, 2026
- HSC ยง113758โ114365.5 (Cottage Food Operations statute) - Last verified: February 19, 2026
- AB 1616 (California Homemade Food Act) - Last verified: February 19, 2026
- AB 1252 (2013 Amendment) - Last verified: February 19, 2026
- AB 1144 & AB 831 (2021 Revenue Cap Updates) - Last verified: February 19, 2026
- County environmental health departments across California
Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Always verify current requirements with your county environmental health department. Cottage food laws can change.
