Thanks to Forrager.com, the United States’ resource for cottage food law information and community, we have some great news for home-based packaged food businesses in 2022:
- Now all cottage food operations (CFOs) in CA can ship within the state. It also allows delivery through third-parties (e.g. Postmates, Doordash, etc).
- This 2022 bill increases the sales limit.
- Now Class A CFOs selling and shipping state-wide direct to consumers can sell $75,000 in gross sales (before expenses).
- Class B CFOs selling to retailers and other wholesales can bring in $150,000 in gross sales annually. WOW
Of course when you have a home-based business, the business parts of your house can offer great tax deductions…which you should discuss with an accountant.
California laws on home-based food businesses
For detailed information on the 2 different home-based food business laws in California:
- How to sell fresh, prepared meals from your home as a Microenterprise Kitchen Operator (as of 1/1/19) within counties that are participating in the law; not all counties may allow this. Contact the Cook’s Alliance for support.
- How to sell packaged, labeled, shelf-stable homemade foods in California as a Cottage Food Operator (CFO)
Shoot Susie a text message for help buying the perfect house for your home-based food business.
