warebyhow to start a home bakery in minnesota
minnesota lets you bake at home and sell to your neighbors without a commercial kitchen. here’s what you can sell, where, how to register, and what changes in 2027.
in this post
1what cottage food is2what you can sell3how to register4where you can sell5labels and signs6sales tax7what changes in 20278selling on wareby9questions10sourcesyes, you can run a bakery from your home kitchen in minnesota. register as a cottage food producer with the minnesota department of agriculture (mda): it’s free if you sell $7,665 or less a year, and $50 a year up to $78,000. take the food safety training for your tier, label everything, and sell straight to the people who’ll eat it: from home, at farmers markets and events, or online, as long as you or your employee hands each order over in person. foods that have to stay cold, like cheesecake or cream pies, aren’t allowed.
what is a cottage food producer?
minnesota’s cottage food law (minnesota statutes, section 28A.152) lets you make certain foods in your own kitchen and sell them without a commercial kitchen or a food license. the mda calls you a cottage food producer.
in exchange, you follow a short list of rules: register every year, take a food safety course, stay under a yearly sales cap, sell only to the person who will eat the food, and label everything as homemade.
it’s how we started, too. our bakery, tandoco, sold cinnamon rolls as a cottage food producer before we moved into a licensed commercial kitchen in 2026.
what can you sell?
foods that are safe at room temperature. the mda’s test is that the food is acidic (a pH of 4.6 or lower) or dry enough (a water activity of 0.85 or lower). that covers most baked goods, candy, jams and pickles. butter, milk and eggs are fine as ingredients in your baking.
you can sell
- breads, rolls and bagels
- cookies, brownies and bars
- muffins, scones and fruit pies
- candy, fudge and toffee
- jams, jellies, pickles and salsa from a tested recipe
- granola, dry mixes and roasted nuts
- baked or dried pet treats
you can’t sell
- meat, including jerky
- dairy products like cheese, yogurt and butter
- anything that has to stay cold, like cheesecake, cream pies or custard
- tamales and egg rolls
- chocolate-dipped fresh fruit
- anything made with thc or cbd
home-canned pickles, salsa and other acidified foods have one more rule: they have to be made and sold in minnesota. not sure about a recipe? ask the mda before you sell it.
how do you register?
you register online with the mda, once a year. every registration expires on march 31, so you re-register by april 1. your tier depends on how much you expect to sell.
| tier 1 | tier 2 | |
|---|---|---|
| yearly sales | $7,665 or less | $7,666 to $78,000 |
| registration fee | free | $50 a year |
| food safety training | an online course and exam, every year | an approved food safety course, every 3 years |
- take the training for your tier. tier 1 is an online course and exam each year. for tier 2, the university of minnesota extension runs an approved course, online or in person.
- register with the mda. apply online, and pay the $50 fee if you’re tier 2. give it a few weeks: the mda mails you a registration card, and you can sell once you’re approved.
- check with your city. the mda asks you to check local business licensing and zoning, since some cities limit selling from home.
- get a sales tax permit if you need one. most baked goods aren’t taxed in minnesota, but candy is. see sales tax below.
where can you sell?
anywhere you sell straight to the person who’ll eat the food. the mda lists four places: “a private home, farmers’ market, community event, or on the internet.”
allowed
- from your home, with customers picking up
- farmers markets and community events
- online: your own site, social media, or an app like hotplate or wareby
- delivery by you or your employee
not allowed
- selling to cafes, stores or restaurants to resell
- courier apps like doordash or uber eats
- mailing or shipping human food (until august 1, 2027)
- leaving orders somewhere else for pickup, like a cafe
online orders are where people get tripped up. taking the order online is fine. the handoff has rules: the mda says the cottage food producer “or their employee must be physically present during product sale or delivery.” so it’s pickup at your home, or delivery to the customer’s home by you or your employee.
we wrote a whole post on this: can you sell cottage food on apps like hotplate or doordash?
what goes on the label?
every item you sell needs a label with:
- your full name or your business name
- your address or your cottage food registration number
- the date you made it
- the ingredients, including allergens (the big nine are milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soy and sesame)
- this exact statement: “These products are homemade and not subject to state inspection.”
at a farmers market or event, put the same statement on a sign where people pay. selling online? the mda asks you to post it on your webpage, too. on wareby, add it to your shop’s story.
do you charge sales tax?
usually not on baked goods. minnesota treats bakery items like bread, rolls, cookies, pastries and pies as food, which isn’t taxed, unless you hand them out with eating utensils. the state’s list of utensils is broad: plates, forks, napkins and straws all count.
candy is taxed. in minnesota, candy means sweets made without flour that come in bars, drops or pieces, like fudge, toffee, caramels and chocolate bark. if you sell those, register for a minnesota sales tax permit (it’s free, and you apply online) and collect tax on them.
farmers markets and events will ask you for form ST19, which shows either your tax id or that you only sell things that aren’t taxed. if you’re unsure about an item, ask the department of revenue.
what changes on august 1, 2027?
minnesota updated its cottage food law in 2025. the update takes effect on august 1, 2027, and until then, today’s rules apply. here’s what changes:
- one registration tier for everyone, at $30 a year
- shipping is allowed for human cottage foods, within minnesota only
- advanced food safety training for every registrant
- the yearly sales cap is adjusted for inflation instead of staying at $78,000
we’ll update this post when the mda publishes the details.
can you sell your baking on wareby?
yes. wareby is a marketplace for verified local businesses, and home bakers are a big part of it. it’s built to fit the cottage food rules:
the open plan is free to start: no monthly fee, 10% per sale, plus card processing of 3% + 30¢ per order. see seller plans, or read the seller guide.
questions people ask
do i need a license to sell baked goods from home in minnesota?
not a food license. you need a cottage food registration from the minnesota department of agriculture. it’s free if you sell $7,665 or less a year, and $50 a year if you sell up to $78,000.
can i sell cottage food online in minnesota?
yes. you can take orders on your own website, on social media, or in an app like hotplate or wareby. the customer then picks up at your home, or you or your employee deliver it to theirs.
can i use doordash to deliver cottage food?
no. the mda requires the cottage food producer or their employee to be there when the food is delivered, so courier apps like doordash and uber eats are out. shipping human food isn’t allowed until august 1, 2027, and then only within minnesota.
can i sell my baked goods to a coffee shop?
not as a cottage food producer. cottage food can only be sold to the person who will eat it. to sell to cafes or stores, you need a licensed kitchen and a food license.
how much can a cottage food business sell in minnesota?
up to $78,000 in gross sales a year. starting august 1, 2027, that cap is adjusted for inflation.
do i need insurance to sell cottage food?
the cottage food law doesn’t require it, but most farmers markets do, and general liability insurance protects you if a customer has a problem with something you sold.
sources
- minnesota department of agriculture: cottage food producer registration
- minnesota department of agriculture: cottage food law guidance
- minnesota statutes, section 28A.152
- university of minnesota extension: cottage food producer food safety course
- minnesota department of revenue: candy (fact sheet 102B)
- minnesota department of revenue: prepared food and utensils (revenue notice 21-02)
this is general information to help you get started, not legal advice. rules change, so check with the agencies above (and your city) before you sell. last checked october 12, 2026.
we started tandoco, a small bakery in minneapolis, and sold under a blue tent at farmers markets before we built wareby. our story
