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Cottage Food
Getting Started and FAQ
What are Cottage Foods?
Cottage Foods are specific types of foods that you make in the unlicensed kitchen of your single-family domestic residence within the State of Michigan. Not all food products can be sold as Cottage Foods. They must be non-potentially hazardous foods that do not require time and/or temperature controls for safety. You must also store your Cottage Food products at your home following safe, good handling guidelines outlined in the Michigan Food Law to prevent adulteration caused by insects, household chemicals, water damage, insanitary conditions, etc.
Checklist for Starting a Cottage Food Business (PDF)
What is a 'single family domestic residence'?
This is the place where you live, whether you own the home or are renting. So, a house, an apartment, condominium or a rental home all could be a single family domestic residence. It does not include group or communal residential settings, such as group homes, sororities or fraternities.
Can I make products from my motor home kitchen, cottage or summer home, an outbuilding on my property (such as a shed or barn) under the Cottage Food Law?
The Cottage Food Law applies only to foods made in the kitchen of your primary residence. Second homes, vacation homes, or motor homes do not qualify if they are not your primary residence. Products must also be stored in your primary residence.
Can I make products in a rented kitchen and sell them under the Cottage Food Law?
No. The Cottage Food Law applies only to foods made in the kitchen of your primary residence. Even if the rented kitchen is a licensed facility, you would need a food establishment license to sell your products.
Is there a limit to how much I can sell as a Cottage Food producer?
Yes. You are limited in the amount of money you can make selling Cottage Foods.
The Cottage Food Law includes a limit to the amount of money you can make selling cottage foods. The limit is currently gross sales up to $50,000 yearly, however, $75,000 is allowable if the cottage food operation sells cottage food products at a price of $250 or more per unit. You need to maintain sales records and provide them to a Michigan Department of Agriculture & Rural Development (MDARD) food inspector, upon request (MDARD has regulatory responsibility for the Cottage Food Law).
What types of Cottage Foods can I produce in my home?
Select non-potentially hazardous foods that do not require time and/or temperature control for safety (i.e., can be safely kept at room temperature and do not require refrigeration) as identified by MDARD (contact the department at 800-292-3939 with additional questions). Some examples include: fruit jams/jellies, breads and similar baked goods, cookies and cakes, vinegars and other non-potentially hazardous foods. This does not include canned, acidified, Acid, Low Acid or pickled foods. Click here for a larger list of Cottage Foods.
What are Potentially Hazardous Foods/Temperature Controlled for Safety Foods?
A producer of Potentially Hazardous Foods/Temperature Controlled for Safety Foods (PHF/TCS) does not qualify as a cottage food operator. "Potentially hazardous food" is defined under the Food Code and is used to classify foods that require time-temperature control (i.e. must be held in a refrigerator) to keep them safe for human consumption. A PHF/TCS is a food that:
- Contains moisture (water activity greater than 0.85)
- Is neutral to slightly acidic (pH between 4.6 and 7.5)
Please refer to the 2009 Michigan Modified Food Code for pH and water activity tables.
Examples of PHF/TCS foods include:
- Meat (beef, pork, lamb)
- Poultry (chicken, turkey, duck)
- Fish
- Shellfish and crustaceans
- Eggs
- Milk and dairy products
- Cooked plant-based foods (for example: cooked rice, beans, vegetables, or mushrooms)
- Baked potatoes
- Certain synthetic ingredients (such as artificial flavoring)
- Raw sprouts
- Tofu and soy-protein foods
- Untreated garlic and oil mixtures
Will I need to meet local zoning or other laws?
Yes. The Cottage Food exemption only exempts you from the requirements of licensing and routine inspection by the Michigan Department of Agriculture & Rural Development. Contact your local unit of government to determine if there are local regulations that will affect your business. Cottage Food businesses also need to comply with the labeling, adulteration, and other provisions found in the Michigan Food Law.
Where can I get a copy of the Michigan Food Law?
You can read the Michigan Food Law online. The sections of the Michigan Food Law where you can find the definitions, exemptions and requirements for Cottage Food are:
|
Section Title |
Short description |
Section Number |
|
Definitions |
Definitions of terms |
289.1105 (H,I, and K (i)(ii)) |
|
Licensing |
Exemptions |
289.4102 |
Does my equipment, stove and/or refrigerator need to be NSF (a food equipment evaluation group) approved?
No. As a Cottage Food operator, you are not required to meet NSF standards for your equipment used to manufacture Cottage Food products.
Do I need to have a DBA for the Cottage Food law?
A DBA (Doing Business As) may be a requirement of your county or local municipality. Contact your county government office to determine if a DBA is appropriate for you. If you are considering registering as an LLC, that transaction is handled by the Michigan Department of Licensing and Regulatory Affairs (LARA). You may want to consult with a business advisor on the specific steps.
Do I need to complete an application or any other paperwork with MDARD when I start my Cottage Food business?
No. If you qualify to operate under the Cottage Food law, you are exempt from obtaining a food establishment license under the Food Code. There are no application forms to complete, no registration process, and you do not need to obtain a food license or permit from MDARD.
Do I need to collect and report sales tax for my Cottage Food business?
Possibly. Cottage Food businesses, although exempt from food licensing requirements, must meet all other provisions of law regarding businesses, including tax law. MDARD recommends that you contact the Michigan Department of Treasury for further information on what food products are considered taxable. Any other taxes depend on how your business is organized. Questions about your options would best be handled by a tax accounting expert, such as a Certified Public Accountant. In general, sales tax is not charged on prepackaged foods that are not for immediate consumption.
The farmers market where I want to sell my products says I need a food license, even though I am a Cottage Food business. Can the market require a license?
Yes. Even though you meet the requirements of a Cottage Food Business, some farmers markets or other direct marketing venues may require vendors to have a food establishment license or to meet other requirements.
Are there any special requirements regarding my home on-site well?
Potable water is required. Products made from non-potable water are considered unsafe. A properly constructed on-site well or municipal water system must be used. If a well is used, the well water should be tested, at least annually, for coliform bacteria and partial chemistry. Water from wells with any of the following features should be avoided:
- Very shallow depth (< 25 ft)
- Producing cloudy water
- Located in below-ground pit
- Buried wellhead
- Missing cap or seal
- Opening around casing pipe
- Located in close proximity to septic system
- Dug well
A list of water testing laboratories and information about water well construction is available online. Local health departments can provide consultation on drinking water quality and well construction.
Are there any concerns related to my home on-site wastewater (septic) system?
Operating a home-based food business can put your septic system at risk of early failure. You should have your septic system evaluated by your local health department prior to starting operations. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) provides guidelines on water testing.
Depending on the nature and volume of the food products which will be manufactured for sale, there can be adverse effects to the existing system serving the home. For instance, adding significant bakery wastewater can not only increase the total volume discharged but may also result in the increase in the organic strength of the wastewater discharged to the drain field, leading to the possibility of accelerated system failure. The adequacy of the home system to handle additional wastewater loading should be evaluated by the local health department prior to initiating manufacturing. The health department can advise you if modifications to the existing system may be necessary.