Georgia Cottage Food Law: No License Needed Since July 1, 2025 and What You Can Sell

Georgia no longer requires a cottage food license. House Bill 398 was signed May 13, 2025 and took effect July 1, 2025. It created new sections O.C.G.A. 26-2-470 through 26-2-478 and removed the state license, the state fee, the pre-license home kitchen inspection, and the annual sales cap. If a guide tells you to pay $100 for a cottage food license, to schedule a kitchen inspection before you sell, or to stay under a yearly sales limit, that guide describes the old system. Some sites still post the old rule text (Rule 40-7-19-.04), so do not use it as your guide.

This article covers what the law now allows, what you may make, the labeling and training steps, the local rules that still apply, and the point where a home operation needs a different license. This is informational content, not legal or tax advice. Confirm your situation with the Georgia Department of Agriculture, and talk with a qualified attorney or CPA if your plans are complex.

What Changed on July 1, 2025

Under HB 398, a home food seller in Georgia who makes cottage food no longer needs a state license. The main changes are:

• No Department of Agriculture license and no state fee. There is no cottage food license to apply for.
• No inspection of your home before you sell. The Department still investigates consumer complaints, reports of foodborne illness and public health emergencies, so the home kitchen is not outside oversight.
• No sales cap. The law does not set a yearly limit on cottage food sales.
• Two sales channels. You may sell directly to consumers, in person, online and by mail order. You may also sell to retail food sales establishments such as grocery stores, convenience stores and restaurants.

The Act expressly leaves federal law in place. The state law does not settle whether you may ship cottage food across state lines, so do not treat an in-state sale as permission to mail products to another state. Before you ship out of Georgia, check with the Department of Agriculture and review the federal rules that apply.

The Department has said it will use enforcement discretion while it amends its rules, and its cottage food page notes that the law is under rule revision. Check the Department's page for rule changes before you launch and again each year. The Act caps civil penalties at $75.

What You Need Before You Start

Gather these items before you make your first sale:

• A written list of every product you plan to sell
• A recipe card and ingredient list for each product, including any sub-recipes
• A clean home kitchen
• Labels for each product, printed or handwritten clearly, with the disclosures covered in Step 5
• A simple sales log, such as a spreadsheet, that records date, product, quantity, price and channel (in person, online, mail order or wholesale to a store)
• Access to the Georgia Tax Center if your sales are taxable (Step 4)
• Your city or county contact information for local licensing (Step 6)

Step-by-Step: Starting a Georgia Cottage Food Business

Step 1: Sort Your Products Into Allowed and Not Allowed

The law allows only foods that are not potentially hazardous, meaning foods that do not need time and temperature control for safety. The Department's list includes:

• Loaf breads, rolls and biscuits
• Cakes
• Pastries and cookies
• Candies and confections
• Fruit pies
• Jams, jellies and preserves
• Dried fruits
• Dry herbs, seasonings and mixtures
• Cereals, trail mixes and granola
• Coated or uncoated nuts
• Vinegar and flavored vinegar
• Popcorn, popcorn balls and cotton candy
• Roasted coffee beans, which HB 398 names as a cottage food

These items are outside cottage food: anything that needs refrigeration, such as cheesecake, cream cheese frosting and custard, along with meat and dairy products. Pet food and pet treats are also excluded because they require a feed license. The full definition is in the Act and on the Department's cottage food page, so check your recipe list against both.

If you are unsure whether a product needs time and temperature control, do not sell it under cottage food rules. Ask the Department first.

Step 2: Decide Whether You Need an Entity

Many home sellers start as a sole proprietor and add an entity later. If you want an LLC, the Articles of Organization cost $110 total: the $100 filing fee plus a $10 service charge. You can file online at the Georgia Secretary of State eCorp portal (https://ecorp.sos.ga.gov/) or on paper. Online filings take about 7 to 10 business days, and paper filings take about 15 business days. Expedited review costs $120 for 2 business days, $275 for same day if received by noon, or $1,200 for one hour on business days.

If you want to hold a name while you decide, a name reservation costs $35 and lasts 30 days. An LLC also files an annual registration of $60 ($50 plus a $10 service charge), due between January 1 and April 1 each year. Check the Secretary of State for the current window and late penalty. Georgia levies no franchise tax on a typical single-member or partnership LLC. Talk with a CPA about whether an LLC makes sense for your sales volume.

Step 3: Complete Food Safety Training

The Department's cottage food page says operators must complete an accredited (ANSI) food safety training program and that a food handler course is acceptable. That requirement does not appear in the enrolled text of HB 398, so confirm it with the Department of Agriculture before you sell. Keep a copy of your certificate in your records. Course prices vary by provider, so compare options before you enroll.

Step 4: Register for Sales Tax and Understand Your Tax Treatment

Sales of cottage food are generally taxable retail sales. Register with the Georgia Department of Revenue through the Georgia Tax Center (https://gtc.dor.ga.gov/). Sales tax registration there is free. Georgia's state sales tax rate is 4%, and combined state and local rates run from 6% to 9% depending on the county and city. Atlanta's combined rate is 8.9%.

Georgia issues no separate resale permit. When you buy ingredients or packaging to resell, you use Form ST-5, the certificate of exemption, instead. Ask the Department of Revenue how it treats your specific products, since some items may be handled differently from others. For general guidance, see the Department of Revenue site at https://dor.georgia.gov/.

Step 5: Label Every Product

Each cottage food product must tell the consumer that it was produced at a residential property, and it must give information about the producer. The Department's labeling page sets out the specific requirements, so use it as your checklist before you print anything.

If you do not want your home address on the label, you may request an Identification Number from the Department instead, using its form. The Department's summary also allows the consumer to be informed through signage at the point of sale or verbally. Choose the method that fits how you sell. A farmers market table and an online listing will need different disclosures, so check each channel.

Step 6: Check Local Licensing and Zoning

The state does not license cottage food, but cities and counties still license businesses. The local license is an occupation tax certificate, often called a business license. A business inside a city pays the city. A business in unincorporated Georgia pays the county. More than half of Georgians live outside any city, so for many home sellers the county is the issuer. Georgia has 159 counties and about 537 cities and towns, and each sets its own formula, deadlines and prerequisites. Private employers with more than 10 employees must file an E-Verify affidavit to get the certificate (O.C.G.A. 36-60-6).

Zoning also still applies. Check your city or county home occupation rules before you list a business at your address. The state law does not override them.

Cities and counties may not regulate cottage food directly, with one exception. A local government may adopt an ordinance that prohibits sales through third-party vendors in its jurisdiction, such as grocery stores and restaurants. To do this, it must hold a public hearing 15 to 45 days after newspaper notice and give notice to the Department of Agriculture. A local government may not stop commercial delivery companies from delivering cottage food. Before you pitch a store in a particular county, ask the local government whether it has opted out.

Step 7: Sell Through the Right Channels

Your direct channels are in-person sales, online orders and mail order. Your wholesale channel is retail food sales establishments, such as grocery stores, convenience stores and restaurants. Each channel has its own paperwork. A store buyer may ask for a product label, a sales tax number and proof of your local certificate.

Farmers markets may set their own rules. Some markets may require a Food Sales Establishment license from the Department of Agriculture even for cottage products. Ask the market manager before you apply, so you do not pay for a license you do not need or miss one the market requires.

Tips for Staying Compliant

• Keep your sales log current. It helps with sales tax, with responding to a complaint and with any question from the Department.
• Keep recipes consistent. If you change an ingredient, check whether the new product still fits the allowed list.
• Keep your certificate, training record and labels together in one folder.
• Recheck the Department's cottage food page every few months while the rules are under revision.

Common Mistakes to Avoid

• Following old guidance. Do not apply for a $100 license or wait for a kitchen inspection. Those rules were removed.
• Selling refrigerated items. A cake with cream cheese frosting, a cheesecake or a custard is outside cottage food. Keep these out of your product line unless you move to a licensed facility.
• Selling pet treats. Pet food and pet treats need a feed license and are not cottage food.
• Skipping the local certificate. The state did not remove city and county licensing or zoning.
• Pitching a store in an opted-out jurisdiction. A local ordinance can prohibit sales through third-party vendors.
• Shipping out of state without checking. The state law does not settle interstate shipping, and federal law still applies.
• Forgetting sales tax. Sales of cottage food are generally taxable, so confirm your registration and tax treatment.

Expected Results and What to Say About Your Products

The state side of this process has no license waiting period, so your timeline depends mostly on your local occupation tax certificate, which varies by city and county, and on how quickly you complete training and tax registration. You may be able to start selling once those pieces are in place, but confirm the local requirements first.

On labels and marketing, describe your product in terms of ingredients, flavor and method rather than health outcomes. Federal rules on claims still apply, so a phrase such as "may support healthy digestion" is a health claim and should not appear on a cottage food label without federal review. Language such as "made with local honey" or "a family recipe from our kitchen" describes the product without making a claim about its effect on health.

When You Need a Food Sales Establishment License

Cottage food works well for a home-based shelf-stable product line, but it has limits. You need a Department of Agriculture Food Sales Establishment license if you add refrigerated items, serve food on site or want a storefront. If you are planning a bakery with a retail counter, start with the Georgia bakery business guide for storefront licensing. For a map of which agency issues which permit, see the Georgia food business permit guide.

Frequently Asked Questions

Can I sell food from home in Georgia?

Yes, if the food is cottage food under HB 398, you complete the required steps, and you meet local licensing and zoning rules. Refrigerated foods and pet foods are outside the cottage food category.

What can I sell under Georgia cottage food laws?

You may sell the non-potentially hazardous foods on the Department's list, such as baked goods, candies, jams and preserves, dried herbs, granola and roasted coffee beans. Check the Act and the Department's page for the full definition.

Is there a Georgia cottage food license in 2025?

No. Since July 1, 2025, there is no state cottage food license, no state fee and no pre-license inspection of your home. Some local governments still issue an occupation tax certificate.

Get Help and Confirm the Details

For questions about cottage food, contact the Department of Agriculture cottage food program at [email protected] or 404-656-3627. For free business planning help, the Georgia Small Business Development Center at the University of Georgia (https://www.georgiasbdc.org/) can help you think through your plan.

This article is informational content, not legal or tax advice. Rules, fees and deadlines can change, and the Department of Agriculture is revising its cottage food rules. Confirm the current requirements with the agencies named above, and consult a qualified attorney or CPA for complex situations such as multi-state shipping, employees or an entity structure.