How to Start a Small Food Business in Illinois

Illinois offers a fantastic opportunity for aspiring food entrepreneurs, especially through the Illinois Cottage Food Law, which allows individuals to sell certain homemade food items without requiring a commercial kitchen. This article will guide you through the types of food businesses that don’t require permits, the basic laws to follow, and some helpful tips for starting your food business in Illinois.

1. Which Food Businesses Don’t Require Permits?

Under Illinois’ Cottage Food Law, small food businesses can sell “non-potentially hazardous” foods made at home, which don’t require refrigeration for safety. Some examples include:

  • Baked goods (cookies, breads, cakes)
  • Jams, jellies, and preserves
  • Fruit butters
  • Dry herbs, seasonings, and teas
  • Candies
  • Honey

These foods can be sold directly to consumers at farmers markets, farm stands, and similar events, but you cannot sell them in stores or ship them. For more information, visit the Illinois Department of Public Health.

2. Laws and Steps to Start a Small Food Business in Illinois

To legally sell food from your home kitchen in Illinois, you need to comply with the Cottage Food Law requirements:

A. Cottage Food Operation Requirements
  • Sales Limits: Cottage food operators are allowed to earn up to $36,000 in annual gross sales.
  • Direct Sales Only: You can sell at farmers markets, through community events, or directly from your home. Retail sales and online shipping are not permitted.
  • Labeling Requirements: All products must have proper labels that include the producer’s name, address, product ingredients, and a disclaimer that the food was made in a home kitchen that’s not inspected by the health department.
B. Food Safety Training

You must complete a certified food safety course to ensure that you’re preparing and handling food in a sanitary and safe way. This is a requirement before you can start your business.

C. Business Licensing

In addition to following the Cottage Food Law, you will need to register your business locally. You may need a business license and be required to adhere to local zoning laws.

D. Commercial Food Production

If you plan to sell food items outside of the Cottage Food Law’s limitations, such as potentially hazardous foods, you’ll need to use a licensed commercial kitchen and obtain a retail food license.

For more information, visit the Illinois Cottage Food Law.

3. Tips for Starting Your Food Business in Illinois

A. Start at Farmers Markets

Illinois farmers markets are great places to sell your products. Build connections with customers and get feedback before expanding your business.

B. Understand Labeling Laws

Make sure to follow the labeling guidelines carefully. Proper labeling is essential to avoid legal trouble and keep your customers informed about your products.

C. Consider Scaling Up

If your business grows, you may want to transition to using a commercial kitchen so you can expand your offerings beyond the limitations of the Cottage Food Law.

For more information, visit the Illinois Department of Agriculture.

*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.