The Requirements for an At-Home Bakery Business in California (2024)

Home-based business bakeries operating in California are expected to follow the home-based food businesses laws that apply to all cities and counties in California. This includes specific licenses and health inspections as well as proper bakery packaging procedures to ensure that sanity and health regulations are respected. Before you start baking products and goods in your home, ensure that you have read and understood all of the requirements for a home-based California bakery.

Standardized Kitchen Space

  1. An at-home bakery in California must have a clean and sanitized kitchen space. Home-based food businesses cannot have pets or children running around in the kitchen space because those elements increase the risk of bacteria in the kitchen. The California Department of Public Health comes to the home bakery and inspects the kitchen before the bakery can open. The inspection specialist checks the kitchen ventilation, walls, cabinets and floors to ensure it is clean and healthy. A license is issued, if the kitchen space passes inspection.

Baking Business License

  1. At-home bakeries in California must register for a basic business license, as the bakery is considered a business entity despite operating from a private home. Sole-proprietor home bakeries may choose to operate the at-home bakery using the owner's Social Security number and using the owner's legal name. Any other business type or structure, including sole-proprietorships running with a fictitious name, must get a license from the local county's clerk office.

Handling Bakery Taxes

  1. The at-home bakery owner must file taxes on all the income earned on the sales of baked goods, cakes and cookies. At-home bakers working alone in a sole-proprietorship can use his Social Security number to file the bakery income tax. This can be done for both full-time and part-time businesses, as part-time income can be filed as secondary income. At-home businesses run as corporations and limited liabilities must get an employer identification number to file bakery income taxes. The employer ID number is provided by the IRS.

Food Handler Certification

  1. The baker creating all of the baked goods must have a food handler certification. This certification is obtained from the California Department of Environment Health and Safety. Additional certification is required, if the baker hires people to create the baked goods for her. At least one person working in the bakery at any time must have a food handler certification to ensure all employees are meeting health and sanitation standards during bakery production.

The Requirements for an At-Home Bakery Business in California (2024)

FAQs

Do you need a license to sell baked goods from home in California? ›

Unfortunately, individuals in California are required to obtain a permit from the local health department in order to hold a bake sale. This ensure food sold safe consumption.

Can you have a bakery business out of your home? ›

For a home bakery business California, a cottage food license "Class A" will allow you to sell directly to consumers, while a "Class B" license will allow you to sell to retailers and restaurants. This is just one example of a home bakery permit.

What do I need to open a food business from home in California? ›

How to Get a Cottage Food Permit in California
  1. Research and decide what food you plan to sell. ...
  2. Complete a food handler's course. ...
  3. Develop a business plan (optional) ...
  4. Obtain required permits and licenses. ...
  5. Register your Cottage Food Operations. ...
  6. Prepare your home kitchen. ...
  7. Obtain your Cottage Food Permit. ...
  8. Sell your food online.
Aug 9, 2023

How much profit should a home bakery make? ›

Most bakeries should set a goal to reach a net profit margin of 20%. Around 10% would be average. Anything under would that be slipping into low revenue. Remember though, your net profit margin accounts for all of your expenses, not just the COGS for your bakery items.

Are home bakeries legal in California? ›

You must get a permit from the county health department to operate a home-based food business in California. You can choose from two types of permits, depending on whether you want to sell products directly to customers or through other local businesses like shops or restaurants.

How much is a seller's permit in CA? ›

There is no charge for a seller's permit, but security deposits are sometimes required. You can apply online using online registration or you may apply at a nearby CDTFA location.

Who is the owner of Home bakery? ›

Hind Al Mulla is a self-taught pastry chef and founder of Home Bakery, an Emirati business that started from her home kitchen in 2012.

Do home bakeries make money? ›

Home bakeries can be a successful side hustle or even a full-time job. Whether you want to keep it small or build it up (maybe even start your own bakery!), it's essential to know what you're getting into. The amount you'll make is based on the work (both time and effort) you put in and the name you make for yourself.

What mistakes do startup bakeries make? ›

8 Mistakes When Starting a Home Bakery Business
  • Pricing Too Low. ...
  • Focusing on Vanity Metrics. ...
  • Taking Too Many Orders. ...
  • Offering Too Many Products. ...
  • Feeling Guilty About Charging. ...
  • Don't Forget to Take a Deposit. ...
  • Not Getting Enough Details. ...
  • Not Buying in Bulk.
Dec 30, 2023

Is it legal to sell food from home in California? ›

According to the California Homemade Food Act, individuals who make and sell certain types of homemade food, including lemonade, can operate without a permit as long as they meet the following conditions: The food must be sold directly to the consumer. The total sales of the food must not exceed $50,000 per year.

What is the California Homemade Food Act? ›

The California Homemade Food Act is a law that legalizes the manufacture and sale of certain homemade food products.

How much is a Class A food permit in California? ›

Application Fee ---------------- $54. Annual Fee for Class A ------ $42. Annual Fee for Class B ------ $158.

What should I charge for a dozen cookies? ›

Pricing depends on complexity, size and amount of colors. BASIC: Starting at $60 / dozen for 3 - 4" cookies with 1 - 3 colors and shapes with simple details and lettering.

What is the failure rate of bakeries? ›

If you want to start a business on industry standards, then know this; 1 in every 5 bakeries fail. Yeah, how do you like those odds? 1 in every 5 bakeries fail so we choose to grow our business outside of industry standards.

What is the most profitable home baking business? ›

5 most profitable bakery foods
  • Artisan bread: The aroma of freshly baked bread is irresistible. ...
  • Cupcakes: Cupcakes are the perfect canvas for creativity. ...
  • Croissants: The flaky, buttery goodness of croissants is a bakery favorite. ...
  • Custom cakes: Custom cakes for special occasions can be highly profitable.

Can you cook and sell food from your home in California? ›

It is legal to sell homemade food from home after you obtain permit to sell food from home. You must get a permit from the county health department to operate a homemade foods business in California. California is one of the few states allowing individuals to sell homemade meals, including meals containing meat.

Do I need a sellers permit to sell food in California? ›

Food Seller's Permit, or California Seller's Permit

All businesses looking to sell tangible goods subject to sales tax need to obtain a seller's permit, including restaurants.

How much does a cottage food license cost in California? ›

It requires an application and self-certification checklist. The registration fee varies by county and ranges from $100–$150 annually. The Class B permit covers both direct and indirect sales. The fee varies by county, costing between $150–$250 each year.

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