How to Start a Cottage Food Business in New Hampshire

New Hampshire takes a refreshingly hands-off approach to cottage food businesses. Unlike most states that cap annual sales at $15,000 to $50,000, the Live Free or Die state places no limit on how much you can earn from your home kitchen. You can also ship your products anywhere within New Hampshire, making it one of the most entrepreneur-friendly cottage food states in the country.

Who This Guide Is For

This comprehensive guide is designed for New Hampshire residents who want to turn their baking or food-making skills into a legal home business. Whether you're testing a side hustle or planning to scale up eventually, you'll learn exactly what you can sell, how to get started legally, and what ongoing requirements you'll need to meet.

What You Can Legally Sell in New Hampshire

New Hampshire's cottage food law covers most non-hazardous foods that don't require refrigeration for safety. The state divides these into clear categories:

Baked goods form the backbone of most cottage food businesses:

• Breads, rolls, and pastries
• Cookies, cakes, and muffins
• Pies with fruit, nut, or vegetable fillings
• Granola and baked snack foods

Preserved foods open up additional opportunities:

• Fruit jams, jellies, and preserves (with proper pH levels)
• Pickled vegetables
• Herb vinegars and flavored oils
• Dehydrated fruits and vegetables

Confections and sweets round out your options:

• Hard candies and brittles
• Fudge and chocolate-based treats (without cream fillings)
• Popcorn and nuts (roasted, seasoned, or candied)

What's Off Limits

New Hampshire prohibits cottage food operators from selling potentially hazardous foods that could cause foodborne illness:

• Fresh or cooked meat, poultry, and seafood
• Dairy products including fresh cheese
• Cream-filled pastries and desserts
• Fresh salsa and other acidified foods (unless properly tested)
• Any food requiring refrigeration for safety

Sales and Distribution Rules

Here's where New Hampshire really shines for cottage food entrepreneurs.

No Sales Cap

Most states limit cottage food sales to $15,000-$50,000 annually. New Hampshire has no sales limit whatsoever. Your cottage food business can grow as large as your kitchen and time allow, without forcing you to transition to a commercial facility.

Online Sales and Shipping Allowed

New Hampshire permits online sales and shipping within state boundaries. You can:

• Sell through your own website
• Use social media platforms
• List products on local marketplaces
• Ship directly to customers anywhere in New Hampshire

This digital-first approach means you can reach customers across the entire state from day one, not just your immediate neighborhood.

Limited Wholesale Opportunities

The state allows limited wholesale sales to retail stores, restaurants, and institutions, but these sales must still stay within New Hampshire. However, wholesale buyers often require additional insurance and certifications, so factor these costs into your pricing.

Permit and Registration Requirements

New Hampshire keeps paperwork to a minimum — there's no state permit required to start a cottage food business.

However, you still need to handle a few administrative items:

Local Requirements

Contact your city or town clerk to ask about:

• Local business licenses (usually $25-$100 annually)
• Zoning compliance for home businesses
• Any local health department notifications

Business Registration

If you plan to operate under a business name different from your legal name, file a "Doing Business As" (DBA) form with your town or city clerk. This typically costs $10-$25.

Tax Considerations

Register for a business tax ID number through the New Hampshire Department of Revenue Administration if you plan to:

• Hire employees
• Form an LLC or corporation
• Collect sales tax (though most cottage foods are exempt)

Labeling Requirements

New Hampshire requires specific information on all cottage food product labels:

Required elements:

• Product name
• Ingredient list in descending order by weight
• Name and address of the cottage food operation
• The statement: "Made in a home kitchen that is not subject to routine government food safety inspection"

Additional label considerations:

• Net weight or volume
• "Best by" or "Use by" dates (recommended but not required)
• Allergen warnings for common allergens like nuts, eggs, or wheat

Keep labels simple but professional. Many successful cottage food businesses use clear, printed labels that reinforce their brand while meeting legal requirements.

Kitchen and Food Safety Requirements

New Hampshire doesn't require kitchen inspections for cottage food operations, but you're still responsible for following safe food handling practices.

Kitchen Standards

Your home kitchen should meet basic sanitation standards:

• Clean, sanitized surfaces and equipment
• Proper food storage away from pets and household chemicals
• Adequate handwashing facilities
• Safe water supply

Food Safety Practices

Even without formal training requirements, understanding food safety protects both your customers and your business:

• Maintain proper cooking and cooling temperatures
• Use clean utensils and containers
• Store ingredients properly to prevent contamination
• Keep detailed records of production dates and ingredient sources

Consider taking a voluntary food safety course through the University of New Hampshire Cooperative Extension or online providers. Many insurance companies offer discounts for completed food safety training.

Step-by-Step Startup Process

Getting your New Hampshire cottage food business up and running involves these key steps:

1. Plan Your Products and Market

• Research what sells well in your area
• Test recipes and get feedback from friends and family
• Calculate costs including ingredients, packaging, and time
• Set prices that cover costs while remaining competitive

2. Handle Legal Requirements

• Check local zoning and licensing requirements
• Register your business name if different from your legal name
• Obtain any required local business licenses
• Research insurance options (highly recommended even if not required)

3. Set Up Your Kitchen and Processes

• Organize your kitchen for efficient, safe production
• Source quality ingredients and packaging materials
• Create standard recipes and production procedures
• Design and print professional labels

4. Choose Your Sales Channels

• Set up online presence (website, social media, or marketplace listings)
• Research local farmers markets, craft fairs, and retail opportunities
• Network with other local food producers and potential wholesale customers

5. Launch and Iterate

• Start small with a few core products
• Gather customer feedback and adjust recipes or processes
• Track sales, costs, and profitability carefully
• Scale up successful products and discontinue slow movers

Insurance Considerations

While New Hampshire doesn't require cottage food businesses to carry insurance, it's a smart business decision. A single food safety incident could cost thousands in legal fees and damages.

Product liability insurance specifically designed for food businesses typically costs $200-$500 annually and covers claims related to foodborne illness or product defects. Many carriers offer policies tailored to cottage food operations.

Growing Beyond Cottage Food

New Hampshire's lack of sales caps means you might outgrow your home kitchen's capacity before hitting legal limits. When you're ready to scale up, consider:

• Renting commercial kitchen space by the hour
• Partnering with other cottage food producers to share costs
• Eventually transitioning to a licensed commercial facility

The state's business-friendly environment makes this transition smoother than in more restrictive states.

Next Steps

New Hampshire's cottage food laws create an ideal environment for food entrepreneurs who want to test ideas, build customer bases, and grow businesses without artificial constraints. The combination of no sales caps, online sales permissions, and minimal paperwork means you can focus on what matters most: creating great products and serving customers.

Ready to turn your kitchen skills into a thriving business? Koti makes it easy to set up your online cottage food store, manage orders, and connect with customers across New Hampshire. Get started at koti.market/sell and join hundreds of cottage food producers already growing their businesses with our platform.

Whether you're baking your grandmother's cookie recipe or developing innovative preserves, New Hampshire's cottage food laws give you the freedom to build the food business you've always dreamed of.