Starting a Small Food Business in Minnesota: Laws, Permits, and Licenses

If you are looking to start a home-based food business in Minnesota, understanding the state’s cottage food laws is essential. Minnesota has flexible regulations that allow individuals to sell homemade, non-hazardous food without a commercial kitchen. 

1. What is a Cottage Food Producer?

A cottage food producer is an individual who prepares and sells food items that are non-potentially hazardous, meaning they don’t require refrigeration for safety. Examples include baked goods, jams, jellies, and canned goods. Minnesota’s cottage food law allows these producers to sell their goods directly to consumers.

To legally operate as a cottage food producer in Minnesota, you must apply for a Minnesota cottage food license and comply with state requirements.

2. Minnesota Cottage Food Law

The Minnesota cottage food law allows individuals to sell certain low-risk food items made in their home kitchens. However, there are specific rules you need to follow:

  • You must register as a cottage food producer and obtain a cottage food license MN.
  • Your annual sales cannot exceed $78,000.
  • Sales are limited to direct-to-consumer transactions (farmers markets, craft fairs, and home sales).

To learn more about specific food safety guidelines and eligible food products under cottage food law MN, visit the Minnesota Department of Agriculture’s website.

3. How to Obtain a Minnesota Cottage Food License

To start a home-based food business, you’ll need a cottage license Minnesota. The process includes:

  • Online training: You must complete a mandatory food safety training program.
  • Registration: After training, register as a cottage food producer with the Minnesota Department of Agriculture. This registration must be renewed every year.
  • Labeling: All food items sold under the Minnesota cottage food law must be properly labeled with ingredients and a disclaimer stating that the product is homemade and not subject to state inspection.

This cottage license MN ensures that you are following food safety standards and selling safe, non-hazardous food items.

4. When a Cottage License is Not Enough: Food License MN

If you plan to sell food items that are not covered under the cottage food law MN, such as meat, dairy, or items that require refrigeration, you will need a different type of food license MN. You may also need a home bakery license Minnesota if you are producing large quantities of baked goods that go beyond the cottage food limit.

5. Small Business License and Resale License MN

If you’re starting a food business beyond cottage food production, you may need additional permits:

  • Small business license MN: Required for more complex food operations, especially if you hire employees or operate outside of the home.
  • Resale license MN: If you plan to purchase goods wholesale and resell them, you’ll need a resale license MN. This allows you to buy items tax-free for resale and is issued by the Minnesota Department of Revenue.

6. Steps to Start a Cottage Food Business in Minnesota

A. Training and Registration: Complete the required food safety training and apply for your cottage license Minnesota.

B. Understand Sales Limits: Ensure your sales do not exceed the maximum annual limit of $78,000. Sales must be direct to the consumer.

C. Labeling Requirements: Follow all labeling rules, including ingredients and the mandatory statement that your products are homemade.

D. Business Licenses: Depending on the scale of your business, you may also need to obtain a state of Minnesota business license or a resale license MN.

*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.