Sellers
The Complete Guide to Michigan's Cottage Food Law
Michigan's Cottage Food Law is one of the most accessible ways to start a food business. Whether you're a home baker, jam maker, or granola producer, the law lets you sell certain homemade foods directly to consumers without a commercial kitchen or food establishment license. Here's everything you need to know.
The basics
Michigan's Cottage Food Law (originally PA 208 of 2010, updated by PA 208 of 2017) allows home-based food production and direct sale of certain "not potentially hazardous" foods. The law was specifically designed to help small food entrepreneurs start and grow without the regulatory burden that makes sense for large-scale operations but crushes small ones.
Key requirements: - Products must be "not potentially hazardous" (don't require refrigeration) - Annual gross sales cannot exceed $25,000 - Sales must be direct to the end consumer (no wholesale) - Products must be properly labeled - Your kitchen does not need to be inspected
What you can legally sell
The law focuses on foods that are safe at room temperature. Here's a detailed breakdown:
Baked goods (the biggest category)
Bread, rolls, biscuits, cookies, brownies, cakes (without cream/custard filling), muffins, pies (fruit pies, nut pies — not cream pies), pastries, scones, and tortillas.Candy and confections
Fudge, toffee, brittles, caramels, chocolate-dipped items (as long as the filling is shelf-stable), hard candy, and marshmallows.Preserved foods
Jams, jellies, and fruit preserves made with high-acid fruits. Fruit butters. Pickled fruits and vegetables (high-acid only — pH 4.6 or below). Note: low-acid canned goods like plain vegetables, salsas, and sauces require a commercial license.Dried goods
Dried fruits, dried herbs, tea blends, dried pasta, granola, trail mix, roasted nuts, popcorn, and dry baking mixes.Other allowed items
Honey (raw or infused), maple syrup, roasted coffee beans, and nut butters processed to be shelf-stable.What you CANNOT sell under cottage food
- Dairy products (cheese, butter, yogurt, cream) - Meat, poultry, or fish products - Eggs (different rules — see our egg selling guide) - Cream-filled or custard-filled pastries - Kombucha, wine, cider, or any fermented alcoholic beverages - Low-acid canned vegetables or sauces - Any product requiring refrigerationThe $25,000 revenue cap
Your total gross sales from cottage food products cannot exceed $25,000 per calendar year. This is gross revenue — not profit. So if you sell $25,000 worth of bread, the entire $25,000 counts, not just your profit after ingredient costs.
What happens if you exceed the cap? You have two options: 1. Stop selling for the rest of the calendar year 2. Obtain a food establishment license from MDARD and operate from an inspected kitchen
Many successful cottage food producers eventually graduate to a licensed operation. Think of the cottage food law as your on-ramp — it lets you validate your product and build a customer base before committing to the expense of a commercial kitchen.
Labeling requirements (don't skip this)
Every cottage food product must have a label containing:
1. Product name (e.g., "Blueberry Jam" or "Chocolate Chip Cookies") 2. Your name and home address (the address of where the product was made) 3. Date the product was made (or a best-by date) 4. Complete ingredient list in descending order of weight 5. Allergen declaration listing any of the eight major allergens: milk, eggs, wheat, soy, peanuts, tree nuts, fish, shellfish 6. The required disclaimer: "Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture & Rural Development"
Pro tips for labeling: - Invest in good label design. A professional-looking label builds trust and justifies a premium price. - Use a consistent format across all products for brand recognition. - Double-check allergen information every time you change a recipe. Cross-contamination warnings are also wise if you process multiple products in the same kitchen.
Where you can sell
The cottage food law allows direct-to-consumer sales through several channels:
From your home. Buyers can come to your door. Set pickup hours that work for your schedule.
Farmers markets. Most Michigan markets accept cottage food vendors. Some charge booth fees ranging from $15 to $50 per market day.
Farm stands and roadside stands. If you have a visible location, a stand can attract drive-by customers.
Online platforms. This is where Rootly comes in. List your products, accept orders online, and schedule pickups. You reach more buyers without standing behind a booth every Saturday.
Community events. Craft fairs, church bazaars, school fundraisers, and similar events are all valid sales channels.
You cannot sell wholesale. Cottage food products cannot be sold to stores, restaurants, or other businesses for resale. Every sale must be directly to the person who will eat the product.
Getting started: a practical checklist
1. Research which products you'll sell and confirm they qualify under the cottage food law 2. Perfect your recipes and calculate your costs per unit 3. Design and print compliant labels 4. Set your prices (remember: at least 3x your ingredient cost) 5. Create a store on Rootly to reach local buyers 6. Take appetizing photos in natural light 7. Set your pickup availability 8. Share your store link with your network 9. Track your sales to stay under the $25,000 cap
Common questions
Do I need any kind of registration or permit? No. The cottage food law specifically exempts you from food establishment licensing. However, some local jurisdictions may have zoning requirements for home businesses — check with your township or city.
Do I need liability insurance? It's not legally required, but it's strongly recommended. A home-based food business insurance policy typically costs $200 to $500 per year and protects you if someone claims they got sick from your product.
Can I sell at a market in another state? No. Michigan's cottage food law only applies to sales within Michigan. Each state has its own cottage food regulations.
Can I deliver to customers? The law requires direct sale, which has been interpreted to include delivery in most cases. However, pickup is safer legally and more practical for most cottage food producers.
For the complete regulatory overview including meat, dairy, and egg requirements, visit our seller requirements page. Ready to start selling? Create your Rootly store today.