Do You Need a License to Sell Baked Goods in Florida?

You do not need a state license to sell baked goods in Florida, as long as you operate under the state’s cottage food law: keep annual gross sales at or below $250,000, sell only shelf-stable products directly to consumers, and label everything according to the statute.¹ Step outside any of those conditions and the exemption disappears, which puts you in the same category as an unlicensed food establishment.

How the Cottage Food Exemption Works

Florida classifies a home baking business as a “cottage food operation.” That classification exempts you from the food establishment permit that commercial bakeries and restaurants must get from the Florida Department of Agriculture and Consumer Services (FDACS).² No state inspection of your kitchen is required, and you do not have to register with FDACS before you start selling.

The exemption also blocks local governments from adding their own food safety layer on top. Your city or county cannot pass an ordinance that prohibits a cottage food operation or that regulates how you prepare, store, or sell your products.¹ Local rules about the physical business (parking, signage, home appearance) still apply, and most municipalities still require a local business tax receipt.

What You’re Allowed to Bake

The exemption only covers products that are shelf-stable, meaning they don’t need refrigeration to stay safe. For a baker, that’s a wide field: breads, rolls, cookies, brownies, cakes, pastries, fruit pies, candies, dry mixes, granola, and coated nuts all qualify.

Anything that needs to stay cold is out. Cheesecakes, custard-filled pastries, cream pies, and cakes with perishable fillings cannot be sold under the cottage food law. The test is simple: if the product needs refrigeration to be safe, it is not a cottage food product and must be made in a permitted, inspected facility.

Products containing hemp extract, CBD, THC, or any other hemp-derived compound are also excluded from the exemption. For recipes using alcohol-based extracts beyond ordinary vanilla, contact the Florida Division of Alcoholic Beverages and Tobacco before you sell.

Where and How You Can Sell

Cottage food sales have to go straight from you to the person who will eat the product. You can sell from your home, at farmers’ markets, at flea markets, or at similar events. Online and mail-order sales are explicitly allowed, with delivery by USPS, a commercial carrier, or in person.¹

What’s off-limits is anything that isn’t a direct sale. You cannot sell wholesale to restaurants, grocery stores, or coffee shops. Consignment is also prohibited, even if the shop simply displays your labeled products.³ All product must be stored at your home, not at a separate location.¹

The statute doesn’t directly address shipping across state lines. As a practical matter, once your products cross a state border you’re in interstate commerce, which brings in federal FDA oversight and possibly the receiving state’s food laws. Neither is covered by your Florida exemption. Staying in-state is the safe path.

The $250,000 Sales Cap

Your operation loses its exempt status if annual gross sales exceed $250,000.¹ The cap covers every cottage food product across every sales channel, and FDACS can request written documentation of your sales at any time. Keep clean records.

If you cross the threshold, you’d need a standard food establishment permit under Florida Statute 500.12, which means a commercial kitchen built to inspection standards. That’s a significant jump in cost, so tracking revenue closely matters, especially if online sales pick up faster than expected.

Labeling Requirements

Every product you sell must be prepackaged with a label carrying all of the following information:¹

The name and physical address of your cottage food operation.
The name of the product.
Ingredients in descending order by weight.
Net weight or volume.
Allergen information covering the nine major allergens under federal law: milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soybeans, and sesame.⁴
Nutritional information, but only if you make a nutrition claim like “low sugar” or “high fiber.”
The disclaimer “Made in a cottage food operation that is not subject to Florida’s food safety regulations,” printed in at least 10-point type with a color that contrasts against the background.

Allergens are where new bakers most often trip up. Sesame was added to the federal list in 2023 and turns up in ingredients you wouldn’t expect. If any of the nine allergens is present, the label has to say so, either through the ingredient list or a separate “Contains” statement.

Local Business Rules That Still Apply

Local governments can’t regulate your cottage food products, but they can enforce Florida’s home-based business rules, which govern the footprint of your operation rather than the food.⁵ You’re allowed to operate in a residential zone. You can employ up to two people who don’t live in your home (remote workers don’t count). Your parking and vehicle activity has to look like a normal household’s, your home has to keep its residential appearance from the street, and any retail transactions must happen at the residence itself, not in a detached garage or shed.

Separately, most Florida cities and counties require a local business tax receipt (sometimes still called an “occupational license”) for any business operating in their jurisdiction, home-based included. Fees and forms vary. Check with your local tax collector before your first sale.

Taxes You’ll Owe

The cottage food exemption is a food safety rule, not a tax exemption. The statute is explicit that cottage food operations must comply with all applicable state and federal tax laws.¹

As a sole proprietor, you report income and expenses on Schedule C of your federal return, deducting costs like ingredients, packaging, and equipment.⁶ Florida has no state income tax, so the federal return is the main event.

Self-employment tax is what catches new sellers off guard. If your net profit exceeds $400 for the year, you owe 15.3% for Social Security and Medicare on top of regular income tax.⁷ Factor that in from the start if you’re making quarterly estimated payments.

Sales tax is less clear-cut. Most food sold for home consumption is exempt from Florida sales tax, but specific products and selling situations can change that. Confirm your treatment with the Florida Department of Revenue.

Why Homeowners Insurance Isn’t Enough

Your homeowners or renters policy almost certainly won’t cover your baking business. Standard policies contain a business pursuits exclusion that removes liability coverage for any profit-making activity run from the home. If a customer gets sick from your product or is injured on your property during a pickup, the claim is likely to be denied, and courts routinely uphold that exclusion for small or part-time operations.

The fix is a commercial general liability policy that specifically covers food products. Several insurers write these for cottage food operations at modest annual premiums. The cost of defending a single foodborne illness lawsuit would exceed years of coverage.

What Happens if You Break the Rules

FDACS can investigate complaints and, if one is filed, an authorized state employee can enter and inspect your home kitchen.⁸ Refusing the inspection is itself grounds for disciplinary action.

Administrative fines run up to $5,000 per violation.⁹ The larger risk is losing exempt status altogether. Exceed the $250,000 cap, sell wholesale, or break another condition of the law, and you’re no longer a cottage food operation in the state’s eyes. At that point you’re an unlicensed food establishment, and operating without a food permit is a second-degree misdemeanor carrying up to 60 days in jail. A repeat violation after a conviction becomes a first-degree misdemeanor with up to a year in jail.¹⁰

Follow the rules and none of this should come up. Keep your labels compliant, your sales direct-to-consumer, your revenue documented, and your total under the cap.

1
The Florida Legislature. Florida Statutes 500.80 – Cottage Food Operations
2
Florida Department of Agriculture and Consumer Services. Cottage Foods
3
Florida Department of Agriculture and Consumer Services. Cottage Food Operations Guidance
4
U.S. Food and Drug Administration. Food Allergies
5
Florida Senate. Florida Statutes 559.955 – Home-Based Businesses; Local Government Restrictions
6
Internal Revenue Service. About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)
7
Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
8
The Florida Legislature. Florida Statutes Chapter 500 – Food Products
9
The Florida Legislature. Florida Statutes 570.971 – Administrative Fines
10
The Florida Legislature. Florida Statutes 775.082 – Penalties; Applicability of Sentencing Structures; Notification Requirements