Starting a small food business in Texas is easier thanks to the state’s Cottage Food Law, which allows individuals to prepare and sell certain low-risk foods from their home kitchen. If you’re passionate about creating homemade treats or specialty goods, here’s how you can start a home food business in Texas, including details on food cottage law, necessary steps, and tips.
You can sell homemade food in Texas by taking orders via the Airmart online platform.
1. Do You Need Permits to Sell Home-made Food?
Texas’ Cottage Food Law enables home-based food businesses to operate without a permit, as long as they sell non-hazardous foods that don’t require refrigeration. These foods include:
- Baked goods (cookies, cakes, breads)
- Jams, jellies, and preserves (from acidic fruits)
- Pickles, fermented vegetables, and vinegars
- Candies and chocolate confections
- Herbs, dried spices, and seasoning mixes
- Granola and cereals
- Popcorn and popcorn snacks
- Nut mixes and roasted coffee beans
All foods must be sold directly to the consumer within the state of Texas. Third-party sales or wholesale to stores are not allowed.
Refer to the Texas Department of State Health Services for more info.
2. Legal Requirements and Steps
A. No Permit or Commercial Kitchen Required
Under the Texas Cottage Food Law, you don’t need a food manufacturer’s license or permit to operate from home if you stick to selling non-hazardous foods. However, you must follow the law’s other requirements.
B. Business Registration and Sales Tax
You are not required to register your cottage food business with the state of Texas, but you must:
- Obtain a Texas Sales Tax Permit if you plan to sell taxable goods.
- Report any sales tax collected on applicable items, like prepared food items sold at farmers markets or events.
You can apply for a sales tax permit online through the Texas Comptroller’s Office.
C. Labeling Requirements
Every product sold under the Cottage Food Law must be labeled with the following:
- Name and address of the business
- Name of the product
- Full list of ingredients
- Declaration of common allergens (e.g., nuts, milk, wheat)
- A clear disclaimer: “This food is made in a home kitchen and is not inspected by the Department of State Health Services or a local health department.”
Labels must be easy to read and placed on the packaging before sale.
D. Food Safety Training
Though you don’t need a permit, Texas law requires all cottage food operators to complete an accredited food handler’s course. This ensures that business owners are trained in safe food handling practices to reduce the risk of contamination.
You can find food handler courses on the Texas Department of State Health Services.
E. Sales Channels and Limits
You can sell your products directly to consumers in the following ways:
- Farmers markets
- Roadside stands
- Events and fairs
- From your home (direct sales)
- Online sales within Texas, with delivery or pickup arranged directly between buyer and seller
3. Tips for Starting Your Texas Food Business
A. Test Your Products Locally
Begin by selling at local farmers markets or events. These venues allow you to interact with customers, refine your offerings, and build a loyal following. It’s a great way to gauge interest and get feedback on your products.
B. Market Your Business
Even though your sales are limited to Texas, having a strong online presence can help spread the word about your products. Create social media pages or a website where customers can learn more about your offerings, place orders, and contact you.
C. Know Your Niche
Focusing on a specific category of food, such as gluten-free baked goods or organic jams, can help you stand out in a crowded market. Offering unique or specialty items tailored to local preferences will attract loyal customers.
*Disclaimer: This article or any content hereof is not a substitute for professional legal advice, does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.