How to Start a Class A Cottage Food Business in Montana

Montana removed its $35,000 cottage food sales cap in 2023, making it one of the most business-friendly states for home food producers. Whether you want to sell a few dozen cookies at the farmers market or scale up to wholesale distribution, Montana's dual-tier system gives you options to grow.

Who This Guide Is For

This guide walks you through Montana's Class A cottage food requirements if you want to:

• Sell homemade foods from your home kitchen
• Start with basic registration or upgrade to full licensing
• Understand exactly which foods you can and cannot make
• Learn Montana's specific labeling and sales requirements
• Explore both retail and wholesale opportunities

You'll learn the step-by-step process, required paperwork, and practical tips from someone who's navigated these requirements.

Understanding Montana's Dual-Tier System

Montana offers two cottage food pathways:

Unlicensed Operations require only basic registration and allow direct-to-consumer sales up to any amount (no cap). You can sell at farmers markets, online, from your home, and at community events.

Licensed Operations cost $150 annually but unlock wholesale opportunities. You can sell to restaurants, grocery stores, and other retailers in addition to direct sales.

Most beginners start unlicensed and upgrade to licensed when they're ready to scale.

Step 1: Determine Your Allowed Foods

Montana follows standard cottage food restrictions. You can make:

Allowed Foods:

• Baked goods (breads, cookies, cakes, pastries)
• Jams and jellies (high-acid only)
• Dried fruits and vegetables
• Roasted coffee beans and nuts
• Honey and maple syrup
• Pickles and fermented vegetables (high-acid)
• Granola and trail mix
• Candy and confections

Prohibited Foods:

• Fresh or cooked meats, poultry, or seafood
• Dairy products (except some hard cheeses with licensing)
• Fresh produce or cut fruits
• Low-acid canned goods
• Foods requiring refrigeration for safety
• Pet foods or treats

When in doubt, stick to shelf-stable, low-risk foods. The Montana Department of Public Health has a complete list on their website.

Step 2: Set Up Your Kitchen Space

Your home kitchen must meet basic sanitation standards, but Montana doesn't require a separate commercial kitchen for cottage food operations.

Kitchen Requirements:

• Clean, sanitary food preparation area
• Adequate refrigeration for ingredients
• Proper storage for dry goods
• Clean water supply
• Functional ventilation

Best Practices:

• Deep clean before each production session
• Store pet food separately from human food ingredients
• Keep a food thermometer for monitoring temperatures
• Maintain cleaning supplies separate from food areas

No inspection is required for unlicensed operations, but you're responsible for maintaining safe conditions.

Step 3: Complete Your Registration

For Unlicensed Operations:

Contact your local health department to register as a cottage food operation. Requirements vary by county, but typically include:

• Basic registration form with your contact information
• List of foods you plan to produce
• Confirmation of your kitchen setup
• Sometimes a small registration fee (usually under $50)

For Licensed Operations:

Apply through the Montana Department of Public Health and Human Services:

1. Complete the Cottage Food License application

2. Pay the $150 annual license fee

3. Provide detailed recipes and production methods

4. Schedule a kitchen inspection (required for licensed operations)

5. Complete any required food safety training

The licensed pathway takes 2-4 weeks for approval, while unlicensed registration is often immediate.

Step 4: Master Montana's Labeling Requirements

Every product must include specific label information:

Required Label Elements:

• Product name
• Ingredient list (in descending order by weight)
• Your name and address
• "Made in a home kitchen not inspected by the Montana Department of Public Health and Human Services"
• Net weight or volume
• Date of production

Sample Label:

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Grandma's Chocolate Chip Cookies