How to Start a Class A Cottage Food Business in Texas (2025)

Texas just made it significantly easier to turn your kitchen hobby into a real business. Thanks to Senate Bill 541, which took effect September 1, 2025, cottage food producers can now earn up to $150,000 annually — triple the previous limit — and sell through third-party vendors like farmers markets and online platforms.

If you've been testing recipes and getting compliments on your cookies, jams, or granola, this might be your moment to go official.

Who This Guide Is For

This walkthrough is for Texas residents ready to start selling homemade food legally. You'll learn the exact steps to get your Class A cottage food registration, which foods you can and can't sell, how to label products correctly, and where you can sell them.

We'll cover everything from the initial paperwork to your first sale, with specific examples and action items you can complete today.

What Class A Cottage Food Allows

Texas Class A cottage food operations are surprisingly flexible. You can make and sell non-potentially hazardous foods from your home kitchen without a commercial license or health department inspections.

Sales channels you can use:

• Direct to consumers at farmers markets, fairs, and events
• Online sales (within Texas only)
• Through third-party vendors
• From your home (with restrictions)

Annual revenue limit: $150,000 gross sales

Geographic restriction: Sales must stay within Texas borders

The key limitation is "non-potentially hazardous foods" — items that don't require refrigeration for safety. Think baked goods, jams, granola, and dried foods rather than fresh salads, cream pies, or meat products.

Step 1: Confirm Your Food Products Are Allowed

Before you register anything, verify your planned products qualify under Texas cottage food law.

Generally allowed foods:

• Baked goods (bread, cookies, cakes without cream filling)
• Jams, jellies, and preserves
• Dried fruits and vegetables
• Granola, trail mix, and nuts
• Candy and confections
• Honey and honey products
• Pickled vegetables (properly acidified)

Not allowed:

• Products requiring refrigeration
• Fresh or frozen foods
• Dairy products
• Meat or poultry items
• Canned low-acid foods
• Foods with cream cheese frosting

Action item: Write down your top 3-5 products and cross-reference them with the Texas Department of State Health Services cottage food list. If you're unsure about a specific item, contact your local health department.

Step 2: Register Your Cottage Food Operation

Texas requires registration, not a license. This is simpler and cheaper than a commercial food permit.

What you'll need:

• Completed cottage food registration form
• $25 registration fee
• Basic business information (you don't need an LLC or business license first)

Where to register: Through your local health department or the Texas Department of State Health Services online portal.

Timeline: Most registrations process within 2-3 weeks.

Action item: Contact your county health department today to get the current registration form and fee payment instructions. Some counties handle this locally, others direct you to the state system.

Step 3: Set Up Your Kitchen and Workspace

Your home kitchen becomes your production facility, but you need to follow basic food safety practices.

Kitchen requirements:

• Clean, functional kitchen with hot and cold running water
• Adequate refrigeration and storage
• Surfaces that can be easily cleaned and sanitized
• No pets in the kitchen during food production

Storage considerations:

• Finished products must be stored separately from personal food
• Ingredients should be in sealed, labeled containers
• Adequate dry storage away from chemicals and cleaning supplies

Action item: Walk through your kitchen with fresh eyes. What would need to change to produce food for sale? Make a list of any equipment, storage, or organization improvements needed.

Step 4: Create Compliant Labels

Texas cottage food labeling got simpler in 2025 — you no longer need to include your home address on labels, just contact information.

Required label information:

• Product name
• Ingredient list (in descending order by weight)
• Net weight or volume
• Your business name and contact information
• "Made in a cottage food operation that is not subject to Texas food safety regulations"

Example label:

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Sarah's Sourdough Cookies