Start your cottage food business in New York
New York's Home Processor Exemption allows unlimited revenue with free registration. Sell wholesale to stores and restaurants, but note: chocolate products are prohibited.
Last Updated: May 2026 • Verified with official sources
New York Home Processor Exemption Overview
New York's Home Processor Exemption is one of the most entrepreneur-friendly cottage food laws in the nation, with no revenue cap and wholesale capabilities.
No revenue limit (unlimited earning potential)
Free registration required (over 8,000+ registered processors)
Home kitchens are not inspected
Must complete 2-hour food safety course
Can sell wholesale to restaurants, cafes, and grocery stores
In-state shipping allowed
UNIQUE RESTRICTION: Chocolate and chocolate-covered items are PROHIBITED
What You Can (and Can't) Sell
- Baked goods (cookies, cakes, breads, pastries) - with chocolate chips baked in
- Candy (hard candy, toffee, caramels, marshmallows, fudge) - NO chocolate
- Fruit pies and cobblers (no cream or custard)
- Jams and jellies (high-acid fruits only)
- Honey (if you are a beekeeper)
- Fruit syrups
- Popcorn (including caramel corn)
- Granola and trail mix
- Vegetable chips
- Roasted nuts (using commercially roasted nuts)
- Spice blends (using commercially processed spices)
- Dried pasta (using commercial ingredients)
- Baking mixes and soup mixes
- CHOCOLATE: Tempered chocolate, melted chocolate, chocolate-dipped items, chocolate candy, cocoa bombs, almond bark coatings (UNIQUE TO NY)
- Foods requiring refrigeration (cream pies, cheesecakes, cream cheese frosting)
- No-bake products (icebox cakes, no-bake cheesecakes)
- Meat, fish, poultry products
- Dairy products
- Raw or home-processed nuts
- Canned goods (low-acid canning)
- Pickles, sauerkraut, fermented foods
- Sauces, marinades
- Products with alcohol
- Fresh produce
Sales Limits & Locations
No limit
New York has no revenue cap for cottage food operations. You can earn unlimited income from cottage food sales, making it one of the best states for scaling a home food business. Added in 2018 and expanded in 2020.
- Farmers markets
- Direct sales from home
- Community events and fairs
- Online sales with in-state shipping
- Wholesale to grocery stores and retail outlets
- Wholesale to restaurants, cafes, and food service
- Custom orders
- Cannot sell chocolate or chocolate-covered products
- Cannot ship out of state
- Must use commercially processed ingredients for certain products (nuts, spices, dried produce)
Requirements & Regulations
Free registration required with New York Department of Agriculture and Markets. Over 8,000 processors registered as of 2021. Registration is done online and there are no fees.
Home kitchens are not inspected by the state.
Must complete a 2-hour food safety course approved by the Department of Agriculture and Markets.
Not required by law, but strongly recommended for liability protection, especially if selling wholesale.
Check local zoning ordinances for home-based business restrictions.
Sell out before you bake
BakeryFlow is a mobile app for cottage bakers. Take pre-orders, manage drops, and get paid—all from your phone.
Looking for 5 bakers to help shape the product. Early users get free access.
Labeling Requirements
- Statement: 'Made in a Home Kitchen'
- Product name
- Ingredient list in descending order by weight
- Net weight or volume
- Producer name and address
- Allergen information (if applicable)
Legible font size
All information must be on the label
Production & Kitchen Requirements
New York cottage food operations must follow specific production rules to ensure food safety.
- All products must be made in your primary residence kitchen
- Kitchen must be maintained in a clean and sanitary condition
- Pets should be kept out of the kitchen during food production
- Use potable (drinking quality) water for all food preparation
- Store ingredients properly to prevent contamination
- Maintain proper refrigeration temperatures (below 41°F)
- Wash hands thoroughly before and during food preparation
- Use clean utensils, equipment, and food-contact surfaces
- Keep accurate records of production dates and sales
- Do not prepare cottage foods at the same time as potentially hazardous foods
Where & How You Can Sell
Allowed Sales Channels
Sell directly to consumers at approved farmers markets throughout New York.
⚠️ Some markets may require vendor registration
Customers can pick up orders from your home. Accept orders online, by phone, or in person.
⚠️ Must comply with local zoning laws for home-based businesses
Sell at fairs, festivals, church events, and craft shows.
Accept orders through a website or social media and ship within New York State.
⚠️ Can only ship within New York State, not out of state
Sell to grocery stores, convenience stores, and other retail outlets throughout New York.
⚠️ Added in 2020 rules expansion
Sell to restaurants, cafes, and food service establishments.
⚠️ Added in 2020 rules expansion
Accept custom orders for events, parties, and special occasions.
⚠️ Added in 2020 rules expansion
Prohibited Sales Channels
Can only ship within New York State. Cannot ship to other states.
Cannot sell any chocolate or chocolate-covered products due to lack of thermal kill step in tempering process.
Additional Exemptions
- Bake sales and fundraisers by nonprofit organizations may be exempt from labeling if all proceeds go to the organization
- Products given away for free (samples, gifts) do not require labeling
Violations & Enforcement
While New York has a permissive cottage food law, violations can result in penalties.
Penalty: Cease and desist order, potential fines, and possible legal action for repeat offenses
Penalty: Warning letter for first offense, fines for continued violations
Penalty: Immediate shutdown of operation, fines, and potential legal action
Penalty: Investigation by health department, potential civil liability, and criminal charges if negligence is proven
Frequently Asked Questions
Yes, you must register for free with the New York Department of Agriculture and Markets. There are no fees. You must also complete a 2-hour food safety course. You may want to register your business name and obtain an EIN for tax purposes.
Yes! You can list products on Etsy or your own website and ship them anywhere within New York State. However, you cannot ship out of state.
New York is the only state that prohibits chocolate and chocolate-covered products. The reasoning is that tempering chocolate doesn't involve a thermal kill step (chocolate melts at low temps ~90-95°F, insufficient to kill pathogens). You CAN sell baked goods with chocolate chips already baked in, and you CAN sell fudge (no tempering required).
Yes! New York allows wholesale sales to retail stores, restaurants, cafes, and food service establishments. This was added in the 2020 rules expansion.
No! New York has no revenue cap. You can earn unlimited income from cottage food sales, making it one of the best states for scaling a home food business.
The law does not explicitly prohibit helpers, but all production must occur in your home kitchen. If you hire employees, you may trigger additional business regulations and tax requirements.
Yes. Most cottage food products are subject to sales tax. You must register with the state tax authority, collect sales tax from customers, and file regular returns.
Yes, as long as it's your primary residence. However, check your lease agreement as some landlords prohibit home-based businesses.
List all ingredients in descending order by weight. If your product contains any of the major allergens (milk, eggs, wheat, soy, peanuts, tree nuts, fish, shellfish), include a 'Contains:' statement on the label.
Getting Started Checklist
Follow these steps to launch your New York cottage food business:
- Choose your product(s) from the allowed foods list
- Perfect your recipes and test them with friends/family
- Design and print labels with all required information
- Set your prices (factor in ingredients, time, and packaging)
- Register for sales tax collection
- Consider getting liability insurance
- Set up a simple bookkeeping system to track income and expenses
- Find your first sales venue (farmers market, online, etc.)
- Start small and scale as you gain experience
Scaling Beyond Cottage Food
If your business outgrows the cottage food law, consider these options:
- Rent time in a commercial kitchen or shared-use facility
- Apply for a retail food establishment license
- Build or lease your own commercial kitchen space
- Partner with a co-packer for larger production runs
- Explore wholesale opportunities with proper licensing