How to Start a Bakery in Georgia
How to Start a Bakery in Georgia
Georgia just became one of the best states in the country to start a home bakery. HB 398, which took effect July 1, 2025, removed the revenue cap on cottage food sales, eliminated the state license requirement, and — most significantly — now allows home bakers to sell wholesale to retail stores, restaurants, and coffee shops. That means you can build a six-figure home bakery operation in Georgia without a single state permit.
But there’s a hard line. The moment you add items requiring refrigeration, serve food on-site, or open a retail storefront, you’re in full commercial territory: county health permits, commercial kitchen inspections, food safety certifications, and build-out costs that can run well into six figures.
This guide covers both paths. Figure out which one you’re on, and follow the steps for that path.
Why Start a Bakery in Georgia
The timing is genuinely good. Georgia’s cottage food law is now among the most permissive in the nation — unlimited revenue, no state license, and wholesale access to stores and restaurants all from your home kitchen. That’s a combination most states don’t offer.
Beyond the regulatory environment, Georgia’s metro areas have developed a real appetite for specialty baked goods. Farmers markets in Atlanta, Athens, Savannah, and Augusta are full of lines at the artisan bread and pastry booths. Local coffee shops actively look for wholesale bakery partners. That demand exists, and it’s growing.
The business models available to you:
- Home-based cottage food — sell direct to consumers or wholesale to local businesses, no state license required
- Farmers market vendor — use cottage food status at markets, or rent commissary kitchen time for expanded offerings
- Commercial storefront — full retail bakery with a licensed commercial kitchen
- Wholesale supplier — produce for restaurants, grocery stores, and food service, either from a licensed home kitchen (cottage food items only) or a commercial facility
Startup costs range dramatically. A cottage food bakery can get off the ground for under $500. A retail storefront with a full commercial kitchen can cost $150,000 before you open the door.
Path A: Cottage Food (Home-Based Bakery)
This is the path most new Georgia bakers should start with. Here’s exactly what HB 398 allows.
What Changed
Before July 1, 2025, Georgia’s cottage food law had a revenue cap and significant restrictions on where you could sell. HB 398 rewrote the rules:
- No revenue cap. Sell $10,000 or $200,000 worth of product — the law doesn’t care.
- No state license required. The Georgia Department of Agriculture does not require you to register or apply for a permit to operate a cottage food business (though optional registration is available if you want address privacy on public records).
- No home kitchen inspection. Nobody from the state is coming to inspect your oven.
- Wholesale now allowed. You can sell to retail stores, restaurants, and coffee shops — not just directly to consumers. This is the big change.
- Interstate shipping permitted. You can ship to customers in other states.
What You Can and Can’t Sell
Cottage food applies only to non-potentially hazardous foods — items that don’t require refrigeration to stay safe. The allowed list includes baked goods, breads, cookies, cakes, candies, jams, jellies, and granola.
Know the line cold, because it matters. A buttercream frosted cake? Fine. A cream cheese frosted carrot cake? Not fine — cream cheese frosting requires refrigeration, which takes it outside cottage food territory. Custard fillings, cheesecakes, anything with fresh dairy that needs to stay cold — all commercial territory.
If a customer asks for something that requires refrigeration, you have three options: decline, refer them to a commercial baker, or get yourself a licensed commercial kitchen.
Local Opt-Out Rules
HB 398 allows local jurisdictions to pass ordinances prohibiting cottage food sales through third-party vendors within their boundaries. This means a city or county could, in theory, block you from selling wholesale to local restaurants or at certain markets. Before you pitch your croissants to a coffee shop, verify your local rules with your city or county clerk’s office.
Mandatory Food Safety Training
This is not optional. HB 398 requires cottage food operators to complete an ANSI-accredited food safety course. These are typically online, available through ServSafe, StateFoodSafety, or similar providers, and run $15–$50. Keep your completion certificate — you may be asked to show it.
Labeling Requirements
Every product you sell must be labeled with:
- A statement that the item was produced in a home kitchen not subject to state inspection
- Allergen disclosure (common allergens: wheat, dairy, eggs, nuts, soy)
This isn’t a suggestion. Print it on your labels. If you’re selling wholesale to a retailer, they’ll want to see compliant labeling before they put your product on their shelf anyway.
Path B: Commercial Bakery (Storefront or Wholesale with Regulated Items)
If you want a physical retail location, plan to serve food on-site, or need to bake items that require refrigeration, you’re operating a commercial food establishment. The regulatory requirements are real, the costs are significant, and the timeline from concept to open is typically 3–6 months minimum.
County Health Permit
Georgia does not issue food service permits at the state level — your county Environmental Health department does, under Georgia Department of Public Health (DPH) Chapter 511-6-1. For questions or to find your county’s office, contact Georgia DPH at (404) 657-6534.
The process:
- Submit kitchen plans to your county Environmental Health department for pre-approval
- Complete construction or renovation
- Pass a pre-opening inspection
- Receive your permit
Don’t skip step one. Building out a kitchen and then discovering it doesn’t meet code is expensive. Get your plans reviewed first.
Georgia Department of Agriculture Food Establishment License
For retail food operations, you also need a GDA Food Establishment License. Fees are risk-based across five tiers: Tier 1 is $100/year, up to Tier 5 at $300/year. A standard retail bakery typically falls in the lower tiers. Contact the Georgia Department of Agriculture or visit agr.georgia.gov for current tier classifications.
Food Safety Certifications
Certified Food Protection Manager (CFPM): At least one employee with supervisory responsibility must hold a CFPM certification — ServSafe is the most common, but any ANSI-accredited exam qualifies. Plan on $150–$200 for the course and exam. Certification is valid for 5 years.
Food Handler Certification: All food handlers must complete Food Handler certification within 30 days of hire.
These aren’t paperwork formalities. County inspectors check for them.
Commercial Kitchen Standards
Your kitchen must meet Georgia DPH Chapter 511-6-1 requirements. At minimum, that means:
- Three-compartment sink (wash, rinse, sanitize)
- Dedicated handwashing sink — separate from the prep sink
- Proper ventilation and exhaust
- Temperature control equipment that meets code
- Adequate refrigeration and storage
If you’re leasing an existing commercial kitchen space, much of this may already be in place. If you’re converting a retail space, budget for it.
Commissary/Shared Kitchen Option
Not ready to build your own kitchen? Shared commercial kitchens in Georgia rent for roughly $12–$25/hour or $800–$1,500/month for dedicated space. The Georgia Department of Agriculture maintains a list of licensed shared community kitchens at agr.georgia.gov. This is a legitimate path to operating a licensed commercial bakery without a six-figure build-out.
Step 1: Choose Your Business Structure
Whether you’re a cottage food baker selling at the farmers market or planning a full retail bakery, this step applies.
For cottage food operators: An LLC isn’t legally required, but it’s worth the $100. Allergen liability is real. If someone has a severe reaction to a product and claims they weren’t warned, your personal assets are at risk without an LLC structure between you and that claim. File online at ecorp.sos.ga.gov. Processing takes 5–12 business days standard, or pay $100 extra for 2-day expedited.
For commercial bakeries: An LLC or corporation is essential. Food safety liability, lease obligations, employee claims — you need the protection. No question.
After your LLC is approved, Georgia requires an Annual Registration of $60/year (a $50 fee plus a mandatory $10 service fee, effective September 6, 2025). It’s due between January 1 and April 1 each year. Miss the deadline and you’re looking at a $25 late penalty — and eventually, administrative dissolution if you keep ignoring it.
Get your EIN from the IRS at irs.gov/ein. It’s free and takes about five minutes online.
Step 2: Get Your Local Business License
Georgia has no statewide business license. All business licensing is local — your city or county issues an Occupation Tax Certificate, typically costing $50–$200/year depending on your jurisdiction and gross receipts.
Cottage food operators: Some Georgia jurisdictions require an Occupation Tax Certificate even for home-based food businesses. Some don’t. Call your city or county clerk’s office and ask directly — don’t assume.
Commercial bakery operators: You’ll also need zoning clearance confirming your storefront location is properly zoned for food service retail. Pull the address’s zoning designation before you sign a lease.
Two Mandatory Affidavits
Georgia requires two affidavits for all business license applications, and you need to understand them:
E-Verify Affidavit (O.C.G.A. § 36-60-6): If you have 11 or more employees, you must register for E-Verify and provide your user number. Fewer than 11 employees? You file an exemption affidavit. Either way, something must be submitted.
SAVE Affidavit (O.C.G.A. § 50-36-1): You must verify lawful presence in the United States. This requires notarization plus a Secure and Verifiable Document — a driver’s license or passport works. Bring both to a notary before you go to the clerk’s office.
These are not optional. No affidavits, no business license.
Step 3: Register for State Taxes
Register at the Georgia Tax Center at gtc.dor.ga.gov.
Sales tax: Georgia’s base sales tax rate is 4%, with local additions that bring the total to 7–9% depending on your county. Here’s the nuance for bakeries: food and food ingredients sold for off-premises consumption are generally exempt from Georgia sales tax. But prepared food sold for on-premises consumption — say, a pastry someone eats at a table in your café — is taxable. If your bakery has seating or serves food to eat in, you need sales tax registration and a system to track taxable versus exempt sales.
Employer withholding: If you have employees, register for Georgia employer withholding tax through GTC. Georgia’s state income tax is a flat 5.19% in 2025, dropping to 5.09% in 2026 under HB 111.
Workers’ compensation: Once you have 3 or more employees — including part-time — workers’ compensation insurance is mandatory in Georgia. The Georgia State Board of Workers’ Compensation oversees this at sbwc.georgia.gov. Georgia’s rates run approximately 10% below the national median, which is genuinely good news. Get a quote from a commercial insurer before you hire.
Costs at a Glance
Cottage Food Path
| Item | Cost |
|---|---|
| LLC filing | $100 one-time + $60/year |
| ANSI food safety course | $15–$50 |
| Local Occupation Tax Certificate | $50–$200/year (if required) |
| Equipment upgrades | $200–$2,000 |
| Estimated first-year total | ~$400–$2,500 |
That’s a real business for the cost of a nice stand mixer.
Commercial Bakery Path
| Item | Cost |
|---|---|
| LLC filing | $100 one-time + $60/year |
| Kitchen build-out | $30,000–$100,000 |
| County health permit | Varies by county |
| GDA Food Establishment License | $100–$300/year |
| CFPM certification | ~$150–$200 (valid 5 years) |
| Commercial lease | $1,500–$5,000/month |
| Equipment (ovens, mixers, display cases) | $20,000–$80,000 |
| Insurance | $2,000–$5,000/year |
| Estimated first-year total | ~$80,000–$200,000 |
The commercial numbers are wide because Georgia’s markets are wide. A small-town storefront in a converted space is a very different financial equation than a 1,500-square-foot Atlanta retail bakery in a competitive neighborhood.
Which Path Is Right for You
Start with cottage food if you’re testing demand, building a customer base, or simply want to bake and sell without a major capital commitment. Under HB 398, you can grow that operation to serious revenue — wholesale accounts with local coffee shops and restaurants included — before you ever need to consider a commercial kitchen.
Move to commercial when: your product line requires refrigeration, you want to serve customers on-site, or your volume and ambitions have outgrown what a home kitchen can realistically handle.
And if you’re somewhere in the middle — cottage food volume getting serious but not ready for a full build-out — look at shared commercial kitchen rentals. Pay by the hour, use a licensed facility, expand your product offerings, and keep your overhead manageable while you figure out whether a storefront makes sense.
The Georgia Secretary of State Corporations Division can be reached at 2 Martin Luther King Jr. Dr. SE, Suite 313, West Tower, Atlanta, GA 30334, or by phone at (478) 207-2440. For food permit questions, contact Georgia DPH at (404) 657-6534.
Your first step: decide which path you’re on, get your LLC filed, and either complete your ANSI food safety training (cottage food) or start talking to your county Environmental Health office about kitchen plan review (commercial). One of those two actions should happen this week.