How to Start a Class A Cottage Food Business in New Hampshire

New Hampshire might be the most cottage food-friendly state in America. No permits required. No sales caps. Online sales allowed. If you can make it in your home kitchen and sell it directly to consumers, you're probably good to go.

That freedom comes with responsibility, though. Without state oversight, you need to understand exactly what you can and can't do, how to stay compliant, and how to protect your customers and your business.

Who This Guide Is For

This guide is for New Hampshire residents who want to start a cottage food business under Class A regulations. You'll learn exactly what foods qualify, how to set up legally, and how to start selling within weeks.

Whether you're testing a side hustle idea or planning to scale into a full commercial operation, this is your roadmap to getting started right.

What Makes New Hampshire Different

Most states require permits, limit sales to $15,000-$50,000 annually, or restrict where you can sell. New Hampshire takes the opposite approach: maximum freedom with clear boundaries.

Class A cottage foods can be sold directly to consumers with no dollar limits. You can sell at farmers markets, online, from your home, or at community events. The state trusts you to follow food safety guidelines without requiring permits or inspections.

Step 1: Understand What You Can and Can't Make

New Hampshire allows "non-potentially hazardous foods" under Class A. Think foods that don't require refrigeration and won't support bacterial growth at room temperature.

Allowed foods include:

• Baked goods (bread, cookies, cakes, pies)
• Jams, jellies, and preserves
• Candy and confections
• Dried fruits and vegetables
• Granola and trail mixes
• Honey products
• Maple syrup products
• Pickled vegetables (high-acid only)

Foods you cannot make:

• Fresh or cooked meats
• Dairy products (except some aged cheeses with proper training)
• Fresh salsa or low-acid sauces
• Cream pies or custard-filled pastries
• Anything requiring refrigeration

When in doubt, ask: "Could this sit on a shelf at room temperature safely?" If no, it's likely not allowed under Class A.

Step 2: Set Up Your Kitchen Space

Your home kitchen becomes your commercial kitchen, but you need to maintain commercial-level cleanliness and organization.

Kitchen requirements:

• Clean, sanitized surfaces before each production run
• Separate storage for business ingredients and supplies
• Proper handwashing facilities (your regular kitchen sink works)
• Adequate lighting and ventilation
• Pest control measures

Smart setup tips:

• Designate specific shelving for business ingredients
• Install a thermometer to monitor room temperature
• Keep a separate set of measuring tools for business use
• Create a cleaning checklist and stick to it

You don't need to renovate your kitchen, but you do need systems that ensure consistency and safety.

Step 3: Handle the Legal Requirements

New Hampshire keeps it simple, but you still have legal boxes to check.

Business registration:

Register your business name with the New Hampshire Secretary of State if you're using anything other than your legal name. A simple DBA (Doing Business As) filing costs around $50.

Local permits:

Check with your city or town about home business permits. Many municipalities require a basic home occupation permit, typically $25-$100 annually.

Taxes:

Register for a New Hampshire business tax number if you expect to make more than $2,000 annually. You'll also need to track sales for federal income tax purposes.

Insurance:

Your homeowner's insurance likely won't cover business activities. Consider a business liability policy or a home-based business endorsement. Expect $200-$500 annually for basic coverage.

Step 4: Master Your Labeling Requirements

Every product needs proper labeling. New Hampshire requires specific information on all cottage food products.

Required label information:

• Product name
• Ingredient list (in descending order by weight)
• Your name and address
• "Made in a home kitchen not inspected by the New Hampshire Department of Health and Human Services"
• Net weight or count
• Allergen warnings for the "Big 8" allergens

Label design tips:

• Use clear, readable fonts (minimum 1/16 inch for required text)
• Include your contact information prominently
• Consider adding preparation or best-by dates
• Make allergen warnings bold and obvious

You can create labels using online services like Avery or invest in a label printer for higher volume production.

Step 5: Choose Your Sales Channels

New Hampshire's flexibility means you have multiple options for reaching customers.

Direct sales options:

• Farmers markets (most require vendor applications)
• Online sales through your own website
• Social media selling (Facebook, Instagram)
• Home-based sales (check local zoning)
• Community events and festivals

Wholesale limitations:

You can sell to some wholesale accounts like restaurants or retailers, but there are restrictions. Keep sales direct-to-consumer to stay clearly within Class A guidelines.

Online selling specifics:

You can ship within New Hampshire or offer local pickup/delivery. Many cottage food producers start with local Facebook groups or Instagram accounts before building dedicated websites.

Step 6: Price Your Products for Profit

Pricing cottage foods requires balancing ingredient costs, time investment, and market rates.

Calculate your baseline costs:

• Ingredients (including packaging)
• Labor time (be honest about hours spent)
• Overhead (utilities, insurance, equipment depreciation)
• Marketing and sales expenses

Common pricing strategies:

• 3x ingredient cost for basic items
• $15-25/hour for your labor time
• Research local competition for market rates