Is There a Limit on How Much I Can Earn From My Micro Bakery?
In the United States, every state allows you to run a micro bakery from home, but each one sets its own rules for how much you can sell per year under what’s called “Cottage Food Laws.”
These laws are designed to help you get started quickly and affordably without needing a commercial kitchen or food manufacturing license. However, many states set an annual income limit to define what qualifies as a “home-based” operation.
If you decide to grow your micro bakery beyond that limit, you will need to upgrade your setup and licensing so you can keep selling and expanding legally. This is beyond the scope of Micro Bakery School.
States With the Lowest Annual Earning Limits
Some states keep their cottage food sales caps fairly low, which means you may eventually need to transition into a commercial or shared kitchen if your business continues to grow. Here are examples of states with some of the lowest earning limits in the country:
| State | Annual Limit | Notes |
|---|---|---|
| Delaware | $3,000–$5,000 | Very low limit unless operating under farm-based exemptions. |
| Wisconsin | $5,000–$10,000 | Among the most restrictive; varies by product and setup. |
| Colorado | $10,000 per product | Each individual recipe (for example, chocolate chip vs. sugar cookies) has its own cap. |
| South Carolina | $15,000 | Some counties require additional permits or inspections. |
| Michigan | $25,000 | Applies to all cottage food sales combined. |
| Washington | $35,000 | Requires a Cottage Food Permit and home inspection. |
| Nevada | $35,000 | Limit applies statewide for all cottage food producers. |
| North Dakota | $35,000 | Applies to direct-to-consumer food sales only. |
States With No Annual Cap
Some states, including Ohio, Pennsylvania, and New York, have no statewide limit on cottage food sales, as long as labeling and safety requirements are followed.
How to Check Your State’s Limit
Because cottage food laws are managed at the state level, requirements and limits can change over time.
For the most accurate, up-to-date information on your area, visit: https://forrager.com/laws
Please note: Micro Bakery School provides general guidance on home bakery laws and compliance. However, it’s your responsibility to verify and follow the specific rules and regulations in your area. Please consult your local health department or a qualified professional for additional guidance.