Everything You Need to Know Before Turning Your Home Kitchen Into a Business
By Not Your Grams Kitchen
Have you ever looked around your kitchen and thought:
“I wonder if I could actually turn this into a business?”
Maybe you make incredible cookies.
Maybe your biscuits disappear faster than you can make them.
Maybe your grandmother’s jam recipe has everyone asking for another jar.
Maybe you’ve been baking cakes, breads, pies, candies or other treats for family and friends for years and you’re finally ready to take the next step.
If that’s you, welcome to the world of Georgia’s cottage food industry.
And there is some exciting news.
Georgia’s cottage food laws changed significantly on July 1, 2025, when House Bill 398 took effect.
The state eliminated the former Georgia Department of Agriculture cottage-food licensing requirement, expanded sales opportunities, and created a new option that allows cottage-food operators to use a state-issued identification number instead of putting their residential address on labels. (Georgia Department of Agriculture)
But easier doesn’t mean completely unregulated.
You still have responsibilities involving food safety, labeling, business registration, taxes, zoning, markets and local requirements.
So let’s walk through the process from beginning to end.
🍰 STEP 1: Make Sure Your Food Qualifies
The first question shouldn’t be:
“How do I get licensed?”
It should be:
“Does what I want to make qualify as cottage food?”
Georgia cottage food is generally food that is non-potentially hazardous and does not require time or temperature control for safety.
In simple terms, it should be food that can safely remain at room temperature without refrigeration for safety. (Georgia Department of Agriculture)
Examples can include qualifying:
- Cookies
- Cakes
- Breads
- Biscuits
- Muffins
- Pastries
- Fruit pies
- Candies
- Hard candies
- Lollipops
- Jams and jellies
- Certain preserves
- Dried fruits
- Dry herbs and seasonings
- Granola
- Trail mix
- Cereals
- Nuts
- Popcorn
- Popcorn balls
- Cotton candy
- Certain other shelf-stable products
The exact product matters.
A baked good containing a filling or topping that requires refrigeration may not qualify.
Foods that require time or temperature control for safety are outside the cottage-food category. Georgia identifies examples including meat, poultry, fish, shellfish, dairy products, cooked vegetables, baked potatoes, mushrooms, raw sprouts, tofu and untreated garlic-in-oil mixtures. (Georgia Department of Agriculture)
🚨 Don’t Guess
If you’re unsure whether a product qualifies, contact the Georgia Department of Agriculture before you sell it.
Cottage Food Program
Georgia Department of Agriculture — Cottage Food Program
Email: CottageFoodInfo@agr.georgia.gov
Phone: (404) 656-3627 (Georgia Department of Agriculture)
🏠 STEP 2: Understand the Home-Kitchen Requirement
Georgia cottage foods must be produced in the kitchen of your single-family domestic residence.
That means your primary home.
A second home, vacation home or motor home doesn’t qualify simply because you happen to own or occupy it. (Georgia Department of Agriculture)
You also can’t simply move your production into:
- A garage
- Barn
- Shed
- Detached building
- Outbuilding
Those locations don’t qualify as the domestic kitchen permitted under the cottage-food rules. (Georgia Department of Agriculture)
Ingredients and finished products can be stored within the residence, including suitable areas such as a spare room or basement, provided those areas are sanitary and free of pests, dampness and other unsanitary conditions.
🍳 STEP 3: Understand Your Equipment
You don’t need to turn your kitchen into a commercial bakery.
Georgia says cottage-food operators are not required to have NSF-certified household equipment.
However, your equipment still needs to be appropriate for producing safe food.
Georgia also cautions against using large commercial-style equipment in a typical home cottage-food operation because residential kitchens generally aren’t equipped with the sinks and sanitation infrastructure needed for such equipment. (Georgia Department of Agriculture)
In other words:
Your KitchenAid isn’t automatically the problem.
Trying to operate a miniature commercial bakery inside a residential kitchen may be.
🧼 STEP 4: Take Food-Safety Training
Even though Georgia eliminated the cottage-food license, food-safety training is still important and required.
Cottage-food operators must complete an ANSI-accredited food-safety training program.
Georgia states that Food Handler-level training is acceptable for cottage-food operators. (Georgia Department of Agriculture)
Keep a copy of your certificate with your business records.
I recommend keeping both:
- A digital copy
- A printed copy
You never know when a market, event organizer or other business may ask to see it.
💧 STEP 5: Check Your Water Supply
If your home uses public water, keep your records.
If you use a private well, additional requirements apply.
Georgia’s cottage-food guidance addresses testing of private water supplies and recommends annual testing for things such as coliform bacteria and nitrates. (Georgia Department of Agriculture)
This is particularly important because the water used in your food production becomes part of your food-safety system.
🏡 STEP 6: Check Your County and City Rules
This is one of the steps I would never skip.
Georgia cottage-food law does not automatically override local zoning and business requirements.
The Georgia Department of Agriculture specifically tells cottage-food operators to contact their local city and county governments regarding zoning and other applicable requirements. (Georgia Department of Agriculture)
Your local government may require things such as:
- Business license
- Occupational tax certificate
- Home-occupation permit
- Zoning approval
- Local business registration
The name of the requirement varies from one jurisdiction to another.
Ask this question:
“I am starting a home-based cottage food business from my primary residence. What business license, occupational tax certificate, zoning approval or home-occupation permit do I need?”
Write down the name of the person you speak with, the date and what they tell you.
📝 STEP 7: Decide on Your Business Name
You need to decide what you’re going to call your business.
Maybe it’s your own name.
Maybe it’s a creative name.
Maybe it’s something like:
Not Your Grams Kitchen
If you operate under a name different from your legal name, a DBA/trade name registration may be required by your county or municipality.
Georgia’s official guidance says a DBA is filed with the Clerk of the Superior Court in the county where the business is located. (Georgia)
A DBA:
- Does not create an LLC
- Does not create a corporation
- Does not provide liability protection
- Primarily establishes your trade name
Georgia also requires publication of a trade-name notice in the appropriate legal-advertisement newspaper for two consecutive weeks. Requirements and fees vary by county. (Georgia)
Official resource:
🏢 STEP 8: Decide Whether an LLC Makes Sense
A DBA and an LLC are two completely different things.
An LLC is a legal business entity.
You don’t automatically have to create an LLC simply because you operate a cottage-food business.
However, as your business grows, you may want to discuss forming an LLC with an attorney or tax professional.
Consider your:
- Liability exposure
- Business structure
- Tax situation
- Growth plans
- Employees
- Business partners
- Contracts with retailers
Official resource:
Georgia Secretary of State — Corporations Division
🧾 STEP 9: Get an EIN When Appropriate
An Employer Identification Number (EIN) is issued by the IRS.
You may need one depending on your business structure and whether you have employees.
Even when an EIN isn’t strictly required for a particular sole proprietor, some businesses choose to obtain one for business banking and other administrative purposes.
Use the IRS’s official EIN system rather than paying a third-party website to obtain one for you.
IRS — Employer Identification Numbers
🏷️ STEP 10: Build Your Labels Correctly
This is one of the most important parts of the entire process.
Your label isn’t simply a pretty sticker.
It provides customers with information they need and helps establish traceability.
Under Georgia’s post-HB 398 requirements, the required consumer information includes your:
- Business name
- Address and telephone number
OR
- Your Georgia Department of Agriculture identification number in place of the address
The required cottage-food disclosure must also be provided in at least 10-point type. (Justia Law)
For packaged products, the label should also include the required product information, including:
- Product name/common name
- Ingredients
- Net weight or volume
- Allergen information
- Required cottage-food disclosure
The nine major federal allergens are:
- Milk
- Eggs
- Fish
- Crustacean shellfish
- Tree nuts
- Peanuts
- Wheat
- Soy
- Sesame
If you use a tree nut, identify the specific tree nut rather than simply writing “nuts.”
🔐 STEP 11: Protect Your Home Address
This is one of the most useful changes under HB 398.
Previously, cottage-food operators generally had to put their home address on the product label.
Under the new law, Georgia allows cottage-food operators to request an Identification Number from the Georgia Department of Agriculture that can be used in place of the physical address. (Georgia Department of Agriculture)
The registration form is available directly from GDA.
Georgia Cottage Food Identification Number Registration Form
The identification number is tied to the residential property and is not transferable. If you move, you must re-register. (Georgia Department of Agriculture)
Important:
Getting the identification number does not eliminate your other labeling requirements.
Your business/operator name, telephone number, allergen information and required cottage-food disclosure still have to be provided. (Georgia Department of Agriculture)
📦 STEP 12: Understand Direct-to-Consumer Sales
This is the traditional cottage-food model.
You make your product.
You package it.
You label it.
You sell it directly to the person who will consume it.
Examples:
Customer → Not Your Grams Kitchen → Customer
This can include orders placed:
- In person
- Online
- Through social media
- By telephone
- Through your website
- At qualifying events
- At markets
Georgia permits cottage-food sales to end consumers within Georgia. (Georgia Department of Agriculture)
🛒 STEP 13: Selling to Stores and Restaurants
This is where HB 398 made one of the biggest changes.
Before HB 398, cottage-food products generally could only be sold directly to consumers.
Now, Georgia allows cottage-food operators to sell qualifying cottage-food products to retail food sales establishments, including grocery stores, restaurants and convenience stores. (Georgia Department of Agriculture)
That means a relationship such as:
Not Your Grams Kitchen → Local Coffee Shop → Customer
can now be possible under Georgia’s cottage-food framework.
However, don’t confuse this with unrestricted wholesale distribution.
🚫 You cannot simply sell through a wholesaler, broker or distributor for resale.
Georgia’s cottage-food guidance specifically prohibits selling through wholesalers, brokers or distributors. (Georgia Department of Agriculture)
And consignment is different from a direct sale.
If a shop says:
“Put your cookies on our shelf and we’ll pay you after they sell.”
don’t assume that arrangement is automatically permitted.
Georgia’s current FAQ states that cottage foods cannot be sold on consignment. (Georgia Department of Agriculture)
Before entering a retail agreement:
Ask the Georgia Department of Agriculture to confirm that your exact arrangement complies.
🏪 STEP 14: Understand Third-Party Retail Displays
HB 398 also established disclosure requirements for cottage foods sold through third-party vendors.
The law requires cottage-food products sold by a third-party vendor to be displayed in a separate section or display case from non-cottage-food products and for the area to be clearly identified as containing cottage foods exempt from state inspection. (Justia Law)
This protects the consumer by making it clear that the product came from a residential cottage-food operation rather than a commercially inspected food facility.
🧺 STEP 15: Farmers Markets and Vendor Events
Farmers markets can be an excellent way to introduce your products to customers.
But here’s the catch:
The market can have its own rules.
Georgia’s Department of Agriculture specifically acknowledges that farmers markets and other direct-marketing venues may require vendors to obtain documentation or even a Food Sales Establishment License, even though Georgia no longer requires the state cottage-food license. (Georgia Department of Agriculture)
A market may require:
☐ Business license
☐ Food-safety certificate
☐ Liability insurance
☐ Product list
☐ Product labels
☐ Vendor application
☐ Booth fee
☐ Tax documentation
☐ Local permits
☐ Food establishment license
☐ Other market-specific documentation
Always ask BEFORE paying the vendor fee.
Send the organizer a message like:
“I operate a Georgia cottage-food business. Please send me your complete vendor requirements, including licensing, insurance, food-safety documentation, labeling and local permit requirements.”
Get the answer in writing.
💰 STEP 16: Don’t Forget Taxes
Your food business is still a business.
The cottage-food exemption from state food-establishment licensing doesn’t mean you are automatically exempt from taxes.
Georgia businesses can have state tax obligations depending on their business structure and activities. (Georgia)
You should determine:
- Federal income-tax obligations
- Georgia income-tax obligations
- Self-employment taxes when applicable
- Sales/use-tax obligations
- Local tax obligations
- Recordkeeping requirements
The Georgia Department of Revenue provides business tax information through the Georgia Tax Center.
Georgia Department of Revenue — Business Taxes
For complicated situations, talk with a qualified tax professional.
🏦 STEP 17: Separate Your Business Money
Even if you begin very small, consider separating your business finances.
Track:
Income
- Cookie sales
- Cake sales
- Bread sales
- Market sales
- Retail sales
- Online orders
Expenses
- Flour
- Sugar
- Butter
- Eggs
- Chocolate
- Packaging
- Labels
- Equipment
- Vendor fees
- Advertising
- Website costs
- Insurance
- Mileage
- Business registration fees
You want to know whether you’re actually making money.
Revenue isn’t profit.
If you sell $1,000 worth of cookies but spend $800 producing and selling them, your business did not make $1,000.
It made approximately $200 before considering other expenses and taxes.
🛡️ STEP 18: Consider Product Liability Insurance
Georgia’s cottage-food program does not eliminate the possibility of someone making a claim against your business.
Food is a product.
Products create potential liability.
Talk with an insurance professional about whether product liability coverage or a broader small-business policy makes sense for your operation.
Some markets may require proof of insurance even when the state does not.
🌐 STEP 19: Be Careful With Interstate Shipping
Georgia’s cottage-food rules allow sales to end consumers within Georgia.
But once you start shipping products across state lines, federal requirements can become relevant.
The Georgia Department of Agriculture warns that interstate commerce may bring FDA oversight into play. (Georgia Department of Agriculture)
Before you advertise:
“We ship nationwide!”
make sure you understand the federal and destination-state requirements.
A Georgia cottage-food operation isn’t automatically authorized to operate under another state’s cottage-food law.
📋 THE NOT YOUR GRAMS KITCHEN STARTUP CHECKLIST
PHASE 1 — The Idea
☐ Choose your products
☐ Verify each product qualifies as cottage food
☐ Remove products that require refrigeration or other prohibited handling
☐ Develop standardized recipes
☐ Determine shelf life
☐ Identify allergens
PHASE 2 — Your Kitchen
☐ Confirm you’re producing in your primary residence
☐ Check sanitation
☐ Check storage
☐ Check water source
☐ Test private well water when applicable
☐ Check septic considerations
☐ Keep pets and other contamination sources away from production areas
☐ Confirm equipment is appropriate
PHASE 3 — Food Safety
☐ Complete ANSI-accredited food-safety training
☐ Save your certificate
☐ Develop cleaning procedures
☐ Develop ingredient-storage procedures
☐ Develop finished-product storage procedures
☐ Develop an allergen-control procedure
PHASE 4 — Your Business
☐ Choose business name
☐ Search name availability
☐ Determine whether DBA/trade-name registration is required
☐ Register DBA if necessary
☐ Consider LLC
☐ Obtain EIN if appropriate
☐ Check county requirements
☐ Check city requirements
☐ Check zoning
☐ Check home-occupation requirements
☐ Check HOA/lease restrictions
PHASE 5 — Georgia Cottage Food
☐ Confirm products qualify
☐ Review current GDA cottage-food rules
☐ Obtain food-safety training
☐ Apply for GDA Identification Number if desired
☐ Create compliant labels
☐ Establish recordkeeping
PHASE 6 — Selling Directly
☐ Set prices
☐ Create order forms
☐ Establish payment methods
☐ Create pickup/delivery procedures
☐ Create customer policies
☐ Keep sales records
☐ Keep ingredient and packaging receipts
PHASE 7 — Farmers Markets
☐ Find markets
☐ Read vendor rules
☐ Ask whether insurance is required
☐ Ask whether a food license is required
☐ Ask about local permits
☐ Submit vendor application
☐ Prepare signage
☐ Prepare labels
☐ Bring food-safety documentation
☐ Bring payment system
PHASE 8 — Selling to Retailers
☐ Identify potential stores/restaurants
☐ Verify your products qualify
☐ Verify the business is an eligible retail establishment
☐ Confirm the arrangement isn’t prohibited wholesale distribution
☐ Don’t use consignment without confirming legality
☐ Prepare wholesale/retail pricing
☐ Prepare invoices
☐ Prepare product information
☐ Confirm labeling requirements
☐ Confirm third-party display requirements
☐ Put your agreement in writing
📁 CREATE A “BUSINESS BINDER”
One of the best things you can do is create a physical or digital Cottage Food Business Binder.
Keep copies of:
Business
☐ DBA
☐ LLC documents, if applicable
☐ EIN documentation
☐ Local business license
☐ Zoning/home-occupation documentation
Food Safety
☐ Food-safety certificate
☐ Well-water testing
☐ Recipes
☐ Ingredient specifications
☐ Allergen information
Cottage Food
☐ GDA Identification Number
☐ Current GDA guidance
☐ Product list
☐ Label templates
Financial
☐ Receipts
☐ Sales records
☐ Vendor invoices
☐ Market fees
☐ Insurance
☐ Tax records
Customers
☐ Orders
☐ Invoices
☐ Retail agreements
☐ Complaint records
☐ Refund records
This binder could become incredibly valuable if you ever need to answer a question about your business.
🚨 THINGS I WISH EVERY NEW COTTAGE BAKER KNEW
1. Don’t assume something is legal because someone else is selling it.
Someone else’s business isn’t proof that your product or business arrangement complies with Georgia law.
2. Don’t use outdated information.
A lot of cottage-food information online still describes Georgia’s old licensing system.
The state licensing requirement ended July 1, 2025. (Georgia Department of Agriculture)
3. Don’t assume a farmers market follows state rules exactly.
Markets can impose additional requirements. (Georgia Department of Agriculture)
4. Don’t assume a DBA is an LLC.
It isn’t.
5. Don’t assume an LLC replaces a business license.
It doesn’t.
6. Don’t assume a business license makes an illegal food product legal.
It doesn’t.
7. Don’t forget labels.
Your beautiful packaging isn’t compliant if the required information isn’t there.
8. Don’t forget taxes.
The word “cottage” doesn’t make your income disappear from the tax system.
9. Don’t immediately buy thousands of dollars of equipment.
Start with what you actually need.
10. Ask questions before you sell.
The Georgia Department of Agriculture is there to answer cottage-food questions.
❤️ FROM NOT YOUR GRAMS KITCHEN
Starting a cottage food business can feel overwhelming.
There are forms.
Rules.
Labels.
Taxes.
Licenses.
Permits.
Markets.
Recipes.
Insurance.
And approximately seventeen thousand things you suddenly realize you never thought about.
But don’t let that scare you.
You don’t have to build the entire business in one day.
Build it one step at a time.
First, determine what you can legally make.
Then learn how to make it safely.
Then make it consistently.
Then package it properly.
Then label it correctly.
Then make sure your business paperwork is in order.
Then find your customers.
And grow from there.
That’s what makes a cottage-food business so exciting.
It doesn’t have to begin with a storefront.
It doesn’t have to begin with a giant commercial kitchen.
It can begin with a recipe.
A mixing bowl.
A little courage.
And the decision to say:
“I’m going to give this a try.”
That’s where Not Your Grams Kitchen began.
And maybe that’s where your story begins too.
📌 OFFICIAL GEORGIA RESOURCES
Georgia Department of Agriculture — Cottage Food Program
Official Georgia Cottage Food Program
Georgia Department of Agriculture — Cottage Food FAQ
Cottage Food Identification Number
GDA Identification Number Registration Form
Georgia.gov — DBA / Trade Name
Georgia Secretary of State
Georgia Secretary of State — Corporations Division
Georgia Department of Revenue
Georgia Department of Revenue
Georgia Tax Center
IRS
IRS Small Business and Self-Employed Resources
⚠️ A FINAL NOTE FROM NOT YOUR GRAMS KITCHEN
This guide is intended for educational purposes and is based on Georgia’s cottage-food information available in September 2026.
Cottage-food laws, administrative rules, local ordinances and tax requirements can change.
Before starting or expanding your business, verify the requirements that apply to your particular products, residence, city/county and sales arrangement with the appropriate government agency.
When in doubt:
Ask before you sell.
Because protecting your customers—and protecting the business you’ve worked so hard to build—is always worth the extra phone call.
Not Your Grams Kitchen 