Cottage Food Exemption

How to Sell Baked Goods From Your Home Kitchen in Oregon

Maybe it's the sourdough you bring to every barbecue. The banana bread that disappears at the school bake sale before anyone else's table gets touched. The cookies your coworker keeps asking if you'll "take orders" for.

You've thought about it. You've probably googled it at 11pm at least once. And then you saw words like "ODA" and "licensing" and "food safety compliance" and thought — maybe not.

Here's the thing: Oregon actually makes this really doable. You don't need a commercial kitchen. You don't need an inspection. You can start selling legally from the kitchen you already have. This page walks you through every step.

8 steps below — most people get through this in a weekend.

The Bottom Line

Startup cost

~$10 (food handler card) + whatever you spend on labels and packaging

Timeline

Most people go from 'I want to do this' to legally selling in 1–2 weeks

What you DON'T need

✕A commercial kitchen — your home kitchen is fine
✕A health inspection — cottage food is exempt
✕An LLC or business entity — you can start as yourself
✕To collect sales tax — Oregon doesn't have one
✕A huge investment — this isn't opening a restaurant
✕To give out your home address — you get a Registration ID instead

What you DO need

A food handler card, an ODA registration, compliant labels, and the willingness to actually do it.

A note on taxes: Oregon has no sales tax, but your business income is subject to Oregon state income tax and federal self-employment tax. Keep records of your income and expenses for tax time.

The Steps

Make sure your product qualifies

Oregon's Cottage Food Exemption covers non-potentially-hazardous foods — meaning things that are shelf-stable and don't need refrigeration to stay safe.

You can sell:

Bread, rolls, muffins, scones, biscuits
Cookies, brownies, bars
Cakes and cupcakes (with non-dairy frosting)
Pies (fruit-based, nut-based — no custard, no cream)
Granola, trail mix, dry mixes
Jams, jellies, preserves (with proper acidity)
Powdered drink mixes, repackaged dried or freeze-dried foods
Candies, brittles, caramels
Honey (no additives)
Dried herbs and spice blends

Grew the cucumbers yourself? Pickles, salsa, and fermented foods aren't on the cottage food list — but they may qualify under Farm Direct.

You can't sell:

Anything that needs refrigeration
Cream cheese frosting, custard pies, cheesecake
Fresh pasta, fresh salsa (not shelf-stable)
Canned low-acid foods (requires separate licensing)
Meat or dairy products

Eggs, milk, and butter can be ingredients — as long as the finished product is shelf-stable. Butter in your cookie dough is fine. A cream-filled éclair is not.

→ ODA: What Can I Do Without a License?

Confirmed my product qualifies (shelf-stable, non-hazardous)

Get your Food Handler Card

Every person who prepares food for your business needs one. It's an online course — not a scary exam.

Cost: $10 or less

Time: About 2 hours

Valid for: 3 years

Where: County health dept

→ Washington County Food Handler Certification

Completed Food Handler training ($10, ~2 hours)

Register with ODA

Submit a Cottage Food registration with the Oregon Department of Agriculture. This isn't a license application — it's a registration. No inspection, no kitchen review, no approval process.

Cost: Free

How: Online or by mail

You get a Registration ID that goes on your labels instead of your home address.

→ ODA Cottage Food Registration

→ OSU Extension: Oregon's Cottage Food Exemption

Registered with ODA (received my Registration ID)

Get your kitchen in order

No commercial kitchen or inspection required. But Oregon expects your home kitchen is maintained in a clean and sanitary manner:

Clean surfaces and equipment before and after use
Keep pets out of the kitchen while producing
Store ingredients properly (off the floor, sealed containers)
Use clean water
No smoking during production
Handle allergens carefully

Kitchen is clean, organized, and production-ready

Label everything correctly

Every product needs a label with:

Product name
Ingredients list (and sub-ingredients) — descending order by weight or volume
Net weight or volume — in both U.S. and metric units
Allergen declaration — major allergens (wheat, milk, eggs, soy, peanuts, tree nuts, fish, shellfish, sesame)
Business name
Business address — full street address, or just city/state/ZIP if you're listed in a city directory. Don't want your home address on every jar? ODA will issue you a Unique Identification Number (UIN) to print instead — $25/year, expires June 30.
Phone number
Required statement: "This product is homemade, is not prepared in an inspected food establishment, and must be stored and displayed separately if merchandised by a retailer."

Heads up if you have pets at home: ODA also requires you to note them on your label (just the species — "cat," "dog," etc.). Pets can be in the house, just not in the kitchen during production.

Created compliant product labels

Product name
Ingredients list (descending by weight or volume)
Net weight or volume (U.S. + metric)
Allergen declaration
Business name + address (or ODA UIN)
Phone number
Pet declaration (if pets in the home)
Required "homemade" statement

Know your limits

Sales cap: ~$52,700 per year (adjusted annually for inflation). If you hit this, the Domestic Kitchen license is your next step.

Where you can sell:

Directly to consumers (from your home, at their door)
At farmers markets
Online — including shipping and mail order, within Oregon
To retail stores (they must display cottage food signage)

Where you can't sell:

To schools, hospitals, or institutions
Across state lines

Understand my sales limits (~$52,700/yr, Oregon only)

Keep records

ODA can ask to see your sales records. For every sale, track:

What you sold (product name)
How much (quantity)
Price
Date

Also log where the sale happened. For online sales, keep the buyer's address and contact info.

Keep it all for three years — ODA can ask, and you have five business days to produce it. A notebook works. A spreadsheet works. Just keep it current.

Set up a record-keeping system (product, quantity, price, date)

Get found by your neighbors

You're legal. You've got product. Now people need to know you exist.

List on Marketless Farmer — it's built exactly for this. Your neighbors are already looking for local bread, local jam, local everything.

$10/month for a producer listing. Cancel anytime. Oregon-first.

Launch Readiness

Chose a business name (or decided to use my own name)Have a logo or wordmark (even a simple one — Canva works)Took quality photos of my products (natural light, clean background)Wrote a short bio — who I am and why I bakeFigured out packaging (bags, boxes, tissue paper, stickers)Set my prices (ingredients + time + packaging + margin)Have a way to accept payment (cash, Venmo, Square, Zelle — pick at least two)Made a sign for outside my house (if selling from home)Figured out my delivery/pickup methodLooked into which local farmers markets to apply toHave a table display plan (tablecloth, signage, samples setup)Created my Marketless Farmer listingTold 10 people I'm doing thisMade my first sale

Ready to start selling?

Create a seller listing on Marketless Farmer to get discovered by neighbors in your area. $10/month, cancel anytime. No contracts.

Create your listing

Common Questions

Yes. Most Oregon farmers markets accept cottage food vendors — including markets in Portland, Hillsboro, Beaverton, and across the state. Each market has its own application process and vendor fees, but your cottage food registration is sufficient from a regulatory standpoint. Apply early — popular markets fill up.

Your regular home kitchen is fine. That's the whole point of the cottage food exemption — it's designed to let you use what you already have. Just keep it clean and follow safe food handling practices.

Yes, within Oregon. You can take orders through your website, social media, or Marketless Farmer — and you can ship them, too. Mail, delivery, pickup, or in person at an event all work.

You can sell to retail stores under the cottage food exemption. The store must display signage indicating the product was made in a home kitchen.

First: congratulations, you have a real business. Your next step is a Domestic Kitchen License ($208/year, ODA inspection required). It removes the sales cap and lets you sell to stores and restaurants without restrictions.

Not to start. You can operate as a sole proprietor under your own name. If you want to use a business name, register a DBA with the Oregon Secretary of State for $50. An LLC is worth considering as you grow, but it's not required on day one.

Not legally required for cottage food in Oregon, but worth considering — especially if you're selling at markets or events. Some farmers markets require vendors to carry general liability insurance. A basic policy runs $200–400/year.