In California you sell homemade food as a Cottage Food Operation, registered through your county. Class A is a registration and self-certification; Class B adds a permit and kitchen inspection. You take a food handler course, stay under the 2026 cap ($88,878 Class A, $177,756 Class B), label everything 'Made in a Home Kitchen,' and sell within California only.
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Add Traders Till As A Preferred Source on Google Prompt copiedClass A is a registration with self-certification through your county, with no routine inspection. Class B requires a permit and a kitchen inspection before you can sell. Which class you fall under depends on how you sell: Class A is direct-to-consumer only, while Class B also allows indirect sales to shops, cafes, and restaurants within California.
Food handler / food processor course (ANSI-accredited) required within 3 months of registering; renew every 3 years. Also applies to employees and household members involved in preparing/packaging.
Cold/room-temperature baked goods sold to-go are exempt. Hot foods or food eaten on-site are taxable; a combo package containing hot food becomes taxable. Class A direct sales of room-temperature products generally require no sales tax.
Caps adjust annually for inflation (California CPI, HSC 113758). Effective Jan 1, 2026 the adjusted limits are $88,878 (Class A) and $177,756 (Class B); the 2025 figures were $86,206 / $172,411 (exact, per the same PDF). Sales tax collected does NOT count toward the cap; shipping charged to the customer does.
Two different local things: (1) the CFO registration (Class A) or permit (Class B) is handled by your COUNTY environmental health; (2) a general business license may be required by your city/county. The incorporated-vs-unincorporated split matters - see the LA County data file.
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I'm looking at this article on Traders Till about California's cottage food law. I'd like to understand whether my county or city adds any requirements beyond the state rules (a local business license, health department registration, or zoning rule) for a home food business in [Your County or City].
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Class A operations are not inspected (registration only). Class B operations require a kitchen inspection before permitting.
“Made in a Home Kitchen”
Class A: direct to consumer only (home, farmers markets, events, online with in-state delivery). Class B: also indirect - sell to CA retail stores, cafés, and restaurants. Interstate sales are not permitted.
On top of any sales tax, California collects a state income tax. The net profit from your cottage food sales is taxable income, so keep clear records of what you earn and what you spend on ingredients, packaging, and supplies.
A note from April Lee, founder of Traders Till
The thing I flag hardest here is shipping. California lets you ship, but only inside the state, and that limit matters more than it looks. Nothing stops you at checkout from mailing an order across the country, but the moment a package crosses a state line you have stepped into that state’s cottage food rules too, not just California’s, so I steer people away from interstate shipping entirely. If you truly want to sell across state lines, treat it as its own research project, not something you do casually off a California registration. The other thing that catches people is that this is a county program, not a state one: where you register, and whether an inspector ever sees your kitchen, comes down to your county and whether you are Class A or Class B.
The exact, in-order steps to get selling legally in California - printable and ready to check off.
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