Goal plan

How to start a bakery business from home

By the LeapSteps team. Updated . Facts checked .

To start a bakery business from home, check your state's cottage food rules, pick a few bakes those rules allow, and sell them at a local market before you take regular orders. This plan turns that into three steps and a first week of 30-minute tasks, for home bakers fitting it around a day job.

The goal, in three steps

In LeapSteps a goal has a long-term aim, a mid-term milestone and a short-term next step. Your tasks hang off the next step.

Example goal

  1. Long-termTurn my home baking into a bakery business
  2. Mid-termRun a market table every Saturday
  3. Short-termSell my first batch at a local market

Today's taskLook up my state's cottage food rules

We wrote this example ourselves. In LeapSteps you write the long-term goal in your own words. Tap Generate on the mid-term or short-term step and AI drafts three options; keep one, edit it or write your own.

The goal screen in LeapSteps with the AI draft as generated. Long-term goal: Turn my home baking into a bakery business. Mid-term goal: Register a home bakery business and get the required local permit, by Apr 20, 2027. Short-term goal: Bake and sell 5 test batches of one signature item to friends, by Nov 3, 2026.

The app's draft put the permit at mid-term and five test batches for friends first. I'd keep the batches but give them away until you've checked your state's rules, which is why this plan starts with the rules.

The rules come first because they decide what you can bake, where you can sell it and what goes on the label. A market table comes before an online shop: you hear what buyers say, learn which bakes sell, and find out what one batch is worth before you set up orders.

Your first week, in seven short tasks

Each task takes 30 minutes or less. Do one a day, or two on a quiet evening.

  1. Look up your state's cottage food rules20 min Search for your state's name and "cottage food". Read the health or agriculture department's own page, not a summary.
  2. Pick the three bakes you'd sell first15 min Check each one against your state's list of allowed foods. Anything that needs the fridge may have extra rules.
  3. Write the label for one bake20 min Its name, ingredients, allergens and the home-kitchen statement your state asks for.
  4. Work out what one item costs you to make30 min Add up the ingredients and packaging for one batch, then divide by the number of items it makes.
  5. Ask three people which bake they'd buy10 min Friends, neighbors or coworkers. Write down what they'd pay, too.
  6. Message two markets about a table15 min Ask about the fee, the waiting list and what they need from home bakers.
  7. Photograph your best bake in daylight15 min You'll use it on the market sign now and the order page later.

In LeapSteps, add each one in a few words and link it to the goal's next step. End a task with a weekday, like "Ask three people which bake they'd buy Thursday", and it's due that day.

Where should you sell your first bakes?

Each way to sell asks for different things, and your state decides which ones you can use. Here's how they compare in Texas and California; check your own state's rules the same way.

Way to sell Texas California What you set up first
A market table or event Yes, as a sale straight to the customer. Yes, for both classes. Farmers' markets, bake sales and other events count as direct sales. A spot and a table fee from the market, a label on every item and a price list.
Orders by phone or online, delivered locally Yes, if you, an employee or someone in your household delivers in person, and the label details are on your website before you take payment. Yes, for both classes. You can deliver it yourself or use a delivery service. An order page with the label details, a delivery area and delivery days.
Shipping by mail No. The 2025 law took mail order out of the rules for selling online, which now ask for delivery in person. Yes, for both classes, as long as the sale stays within California. Packaging that survives the post, and shipping costs in your prices.
Through a café or shop Only if the shop registers with the state as a cottage food vendor, and never for foods that must be kept cold or hot. Class B only. The shop must hold its own food permit. Wholesale prices, invoices and labels the shop can use.

Sources: the Texas Department of State Health Services and the 2025 law, Senate Bill 541, and the California Department of Public Health. Checked October 20, 2026. The "set up first" column is our own advice.

Check the rules where you live

In the US, food you make at home and sell falls under your state's cottage food rules. Every state writes its own, and they change. Here's what two of them say, to show what to look for in yours.

  • Texas

    • Since September 1, 2025, a home food business can have up to $150,000 a year in sales, a figure the law has adjusted for inflation each year.
    • Most foods are allowed. The exceptions include meat, poultry, seafood, ice products, low-acid canned foods, anything with CBD or THC, and raw milk products.
    • The label has to say the food was made in a private home that the government doesn't license or inspect.
    • You need a basic food handler course. Foods that must be kept cold also need a state registration and safe-handling instructions on the label.
    • You can sell online only if you, an employee or someone in your household delivers the food in person.
    • A city or county health department can't require a license, permit or fee for making these foods or selling them straight to customers.
    Texas Department of State Health Services Senate Bill 541 (2025)
  • California

    • There are two kinds of home food business. Class A sells only straight to customers. Class B can also sell through local shops and restaurants.
    • Class A registers with the local environmental health department, usually the county's, and Class B needs a permit from it. The state doesn't register home kitchens itself.
    • You can sell only the foods on the state's approved cottage food list, which covers foods that don't need to be kept cold.
    • Anyone who prepares or packages the food must take a food processor course within three months of registering, then every three years.
    • The label must say "Made in a Home Kitchen" in 12-point type.
    • Each class has a yearly sales limit, adjusted for inflation. The department's 2026 table puts them at $88,878 for Class A and $177,756 for Class B, though its overview page still shows the older $75,000 and $150,000. Ask your county which figure it uses.
    California Department of Public Health

Checked October 20, 2026. Cities and counties can add rules of their own: as the U.S. Small Business Administration puts it, "zoning ordinances can still apply even to home-based businesses." We're not lawyers: confirm the rules with your state or county before you sell. Outside the US, ask your local health authority.

When you fall behind

A week without baking doesn't undo the plan. Pick the move that fits.

  • The rules check is taking longer than you thought.

    Add each open question as a task linked to the same step, so it stays tied to the goal. Keep the step and add one task, "Email the county my two questions". An answer from the office settles more than a week of forum threads.

  • The market has a waiting list.

    In LeapSteps, edit the short-term step yourself, or tap Generate on it with an area of focus such as "first sale". Make the short-term step one smaller sale your rules allow, like a one-day event.

  • Tasks have piled up on Today.

    Late tasks stay on Today and show how late they are. Press and hold one that can wait and drag it onto Someday. Move the ones that can wait onto Someday and keep two you can finish this week.

  • You sold out and don't know what's next.

    Tap Done on the step, then write or generate the next one. The finished step moves to Steps achieved, so the progress stays in view. That's a step done, so set the next one before the next market day.

Questions, answered

Do I need a license to sell baked goods from home?

It depends on your state, because each one has its own cottage food law for food made at home and sold to the public. In Texas, you need a basic food handler course and the home-kitchen statement on every label, plus a state registration for foods that must be kept cold. A Texas city or county health department can't require a license, permit or fee for selling these foods straight to customers. In California, you register with your county's environmental health department, or get a permit from it if you'll sell through shops, and take a food processor course within three months. Zoning rules can still apply to a business you run from home, so ask your city as well.

What baked goods can I sell from home?

You can sell the foods your state's cottage food rules allow, and the lists differ a lot. Texas allows any food except meat and poultry, seafood, ice and ice cream products, low-acid canned goods, anything containing CBD or THC, and raw milk products. Foods that must be kept cold are allowed there too, but they need a state registration and safe-handling instructions on the label. California allows only the foods on its approved cottage food list, which are foods that don't need to be kept cold. Its health department says eggs are fine in baked goods as long as the product is dry once baked and doesn't need refrigeration. Check each bake against your own state's list before you print a label.

Can I sell baked goods online from home?

Often you can, but states differ on how the food may reach the buyer. In Texas, you can take orders online only if you, an employee or someone in your household delivers the food in person. You also have to post the label details on your website before you take payment, and the 2025 law took mail order out of the rules for selling online. In California, both classes of home food business can take orders by phone or online and fill them in person, by mail or through a delivery service, as long as the sale stays within the state. Wherever you live, read how your state treats online orders before you build an order page, and keep your first orders local.

How much does it cost to start a home bakery?

There's no typical figure we can stand behind, because it depends on your state's fees and on what you already own. So list what you'll pay before your first sale: any registration or permit fee where you live, a food handler course if your state asks for one, labels and packaging, a market table fee, and ingredients for a few test batches. Ask your county or city about its fees, and ask each market about its table fee and what it needs from home bakers. Then work out what one item costs you to make, as in the first week, and set prices that cover those start-up costs over your first few market days.

How should I price baked goods from home?

Start from what one item costs you to make, then decide what your time is worth. Add up the ingredients and packaging for one batch and divide by the number of items it makes. That's your floor: below it, every sale loses money. Then add your time, from shopping to cleanup, at an hourly rate you'd accept, plus your share of the market fee. Check the result against what the three people in your first week said they'd pay, and against prices at the market where you'll sell. If the numbers don't meet, change the bake, the batch size or the market rather than working for nothing.

Can LeapSteps tell me my state's rules?

No. LeapSteps is our app, and it doesn't know local laws: its AI drafts steps toward your goal, not legal answers. Check the rules with your state's health or agriculture department and with your city or county. What LeapSteps can do is hold the work the rules create. Make "Check my state's cottage food rules" the short-term step, and add each open question as a task linked to it, like "Email the county about labels". Each task shows on Today when it's due, next to the rest of your week. When the rules are clear, tap Done on the step and set the next one, such as your first market table.

Put this plan in LeapSteps

LeapSteps keeps your bakery's next step on the same list as the rest of your week, so the evenings you have go to baking and selling, not to planning. LeapSteps is out now on iPhone, iPad, Android, Mac and Windows.

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