How to Start a Bakery in Georgia: Cottage Food Law, GDA Food Sales License and Storefront Rules

October 29, 2026

Starting a bakery business in Georgia comes down to one decision first: are you selling from your home kitchen under the cottage food rules, or from a storefront or commercial kitchen that needs a state license? The answer decides which agency you deal with, how much lead time you need before opening, and what you pay to get started. This guide covers both paths, then walks through the entity, local, zoning, and tax steps that apply to either one.

This article is informational content, not legal or tax advice. Rules, fees, and deadlines change, so confirm each item with the agency named before you spend money or sign a lease. For complex situations, talk with a licensed attorney or a CPA.

Step 1: Choose your path

Use this quick test to see where you fit:

• Path A, cottage food from home: You bake in your residence and sell only non-potentially hazardous foods such as cakes, breads, cookies, and pastries.
• Path B, storefront or commercial bakery: You sell from a retail counter, bake in a commercial space, make refrigerated products, or need volume that cottage rules do not cover.

Many new bakers test recipes and build a customer base on Path A, then move to Path B when volume, refrigerated products, or a storefront require it.

Path A: Cottage food from home

Since July 1, 2025, Georgia’s cottage food law (HB 398) allows qualifying home bakers to sell without a state license or state fee. There is no pre-license home inspection and no sales cap. Here is what the law allows:

• Sales directly to consumers, including online and by mail.
• Sales to retail stores, grocery stores, and restaurants.
• Only non-potentially hazardous foods. The Department of Agriculture’s list includes cakes, breads, cookies, and pastries. Cream cheese frostings, custards, and cheesecakes that need refrigeration do not qualify.
• Local business licensing and zoning still apply. A city or county may opt out of sales through third-party vendors, so check local rules before you sell through a vendor or marketplace.

Two points catch people off guard. First, a farmers market may still require its vendors to hold a Department of Agriculture Food Sales Establishment license, even for cottage products. Ask the market manager before you apply. Second, shipping across state lines is not settled. The law allows online and mail order sales and keeps federal law in place. Check with the Department of Agriculture about how interstate shipping works, and check federal rules for any food you ship out of state.

The Department of Agriculture’s cottage food page asks for accredited food safety training. The enrolled text of HB 398 does not require it, so confirm with the Department whether you need that training before you start selling.

For the full rules, read the Georgia cottage food business guide.

Path B: Storefront or commercial bakery

Know which agency licenses you

Georgia splits food businesses between two agencies. The Georgia Department of Agriculture licenses food sales establishments, meaning businesses that sell food mainly for consumption away from the premises. Retail bakeries fall in this group. County boards of health permit food service establishments, where food is eaten on the premises, along with caterers.

A bakery with a few tables or a coffee counter stays a Department of Agriculture licensee, because the food service part is treated as part of the food sales establishment (O.C.G.A. 26-2-21, as re-enacted in HB 398). Do not send a storefront bakery to the county health department. If you plan a full restaurant-style operation, ask both agencies how they will classify it before you build out the space. The Georgia food business permit comparison lays out the difference.

Form your entity first

Georgia has no general state business license. The Secretary of State issues none, and Department of Revenue sales tax registration is not a business license. You register your entity with the Secretary of State, then add the licenses and permits for your activity. Most bakeries form an LLC.

• Articles of Organization (LLC): $110 total, which is the $100 filing fee plus a $10 service charge. File online or on paper. Online filings take about 7 to 10 business days, and paper filings take about 15 business days.
• Expedited review: $120 for 2 business days, $275 for same-day review if received by noon, or $1,200 for one hour on business days.
• Name reservation: $35 holds a name for 30 days.
• Annual registration: $60 ($50 plus a $10 service charge), filed between January 1 and April 1 each year. An LLC files its first annual registration in the year after it forms. Confirm the current window and the late penalty with the Secretary of State.

File through the Georgia Secretary of State eCorp portal at ecorp.sos.ga.gov. Check name rules at the Corporations Division page before you file. An LLC name must include a limited liability company designator and be distinguishable on Secretary of State records. Every entity also needs a registered agent with a Georgia street address, not a P.O. box.

Georgia levies no franchise tax on a typical single-member or partnership LLC. Corporations, and LLCs taxed as corporations, owe a net worth tax of $0 to $5,000 depending on net worth. For how income tax applies to your entity, see the Georgia business taxes guide.

If you will operate under a name other than your LLC’s legal name, such as Sweet Rise Bakery, you need a trade name registration (DBA). File it with the Clerk of Superior Court in the county where the business is chiefly carried on, not with the Secretary of State. Notice must run in the county legal organ once a week for two weeks. Clerk fees are about $165 plus the newspaper charge, so confirm the exact amount with your county clerk.

Gather your materials and documents

• A written business plan. The Department requires one.
• Citizenship documents that meet the Secure and Verifiable standard the application requests.
• Whatever the Department asks you to bring to the pre-license inspection (check with the Department of Agriculture).
• A certified food protection manager for any operation that handles time and temperature controlled food.
• Your Articles of Organization or Articles of Incorporation, if you have formed the entity.
• A commercial location. A private home cannot be used for this license (Rule 40-7-1-.40).

Apply for the Department of Agriculture food sales license

1. Secure a commercial location and confirm zoning. Zoning is a local check, so confirm that a bakery is allowed at the address before you sign a lease.
2. Write your business plan. Describe your products, expected production volume, equipment, storage, and how you will handle time and temperature controlled food.
3. Gather citizenship documents. Use the Secure and Verifiable documents the application asks for.
4. Apply at least 30 calendar days before opening. The application triggers a pre-license inspection. Build in extra time in case the inspector finds items to correct.
5. Pass the pre-license inspection. Correct any noted items, and confirm your certified food protection manager is in place before you open.
6. Pay the annual fee. Fees are set in tiers of $100, $150, $200, $250, or $300 based on risk level (O.C.G.A. 26-2-25). Ask the Department which tier fits your operation.
7. Calendar the renewal. The license term runs July 1 to June 30 with no proration, so a license issued in March still runs to June 30. The fee rises 50% if you have not renewed by September 1.

Get the state license before you apply for the local certificate. No city or county may issue or renew a business license for a food sales establishment until that establishment complies with the Department’s requirements.

Get your local occupation tax certificate

The local certificate is often called a business license. It is an occupation tax certificate issued under O.C.G.A. Title 48, chapter 13. The city issues it if your bakery is inside city limits. The county issues it for unincorporated areas. Georgia has 159 counties and about 537 cities, and each sets its own formula, deadlines, and prerequisites, so ask the issuing office for the current figure. More than half of Georgians live outside any city, so for many bakers the county is the issuer. A business inside a city pays the city, not the county.

Private employers with more than 10 employees must file an E-Verify affidavit to get the local certificate (O.C.G.A. 36-60-6). Plan to file it before your first local application.

Confirm zoning and certificate of occupancy

Zoning is handled locally. Ask the city or county planning office whether food production and retail sales are permitted at your address, and whether a certificate of occupancy is required before you open. Do this before you sign a lease or buy equipment, because a zoning problem can stop a storefront project.

Register for sales tax

The state sales tax rate is 4%. Combined state and local rates run from 6% to 9% depending on county and city, with Atlanta at 8.9%. Register at the Georgia Tax Center at gtc.dor.ga.gov. Registration is free. Georgia issues no separate resale permit. When you buy ingredients or packaging for resale, give your supplier Form ST-5, the certificate of exemption.

Taxability depends on the product. Baked goods sold for immediate consumption or as prepared food may be taxable, while grocery-type food for home consumption is treated differently. Confirm the treatment of each product with the Georgia Department of Revenue before you set prices. If you ship online, remote sellers owe sales tax collection once they reach $100,000 of Georgia sales or 200 separate transactions.

Plan for employees

Workers’ compensation coverage is required at three or more workers, including part-time workers. Georgia has no state paid sick leave or family leave mandate, so check federal rules and your own policies before you hire.

Common mistakes to avoid

• Sending a storefront bakery to the county health department. Retail bakeries are licensed by the Department of Agriculture.
• Assuming cottage food means no paperwork. Local licensing and zoning still apply.
• Selling refrigerated items under cottage rules. Cream cheese frostings, custards, and cheesecakes that need refrigeration do not qualify.
• Applying for the local certificate first. The state license comes first for a food sales establishment.
• Missing the April 1 annual registration or the September 1 renewal date. Late filings carry penalties, and the license fee rises if you miss the renewal.
• Filing a trade name with the Secretary of State. DBAs go to the Clerk of Superior Court in your county.
• Signing a lease before the zoning check. A use that is not permitted at the address can delay or stop the project.
• Shipping out of state without checking the rules. Interstate shipping is not settled under Georgia law, and federal rules apply to food shipped across state lines.

What to expect

Results depend on your location, product mix, and local rules, so treat these as planning estimates rather than guarantees. The Secretary of State online filing typically takes about 7 to 10 business days. The Department of Agriculture license requires at least 30 calendar days of lead time, and an inspection that finds problems may take longer to clear. A cottage operation that keeps to non-hazardous products and meets local requirements may be able to start selling sooner than a storefront, which typically takes longer because of the state license, the local certificate, and zoning. Confirm each timeline with the agency that controls it.

Decision list: which path to take

1. Start with cottage food if your products are non-potentially hazardous, you sell direct or to stores and restaurants, and you do not need a storefront.
2. Move to the Department of Agriculture license when you need refrigerated products, a commercial kitchen, a storefront, or wholesale volume that a home kitchen cannot support.
3. Form an LLC when you want a separate legal entity. Talk with an attorney about liability and structure before you choose.
4. Finish the local steps last: the occupation tax certificate, zoning, certificate of occupancy, and sales tax registration.

For a side-by-side view of which agency handles each type of food business, read the Georgia food business permit guide. The Georgia Small Business Development Center at the University of Georgia offers business advising at georgiasbdc.org. For tax treatment of your entity, consult a CPA.

Reminder: this article is informational content, not legal or tax advice. Confirm current fees, deadlines, and requirements with the Georgia Secretary of State, the Georgia Department of Agriculture, the Georgia Department of Revenue, and your local city or county before you act.