Cottage Food Business Checklist: 18 Steps to Selling Legally
By FoodDropr Editorial··8 min read
If you've read three articles about starting a cottage food business and still aren't sure what to do next, you don't need more reading — you need a checklist. Here's everything in order.
Phase 1: Confirm you can legally sell (Days 1-3)
Before you spend a dollar:
- Look up your state's cottage food law (use our state guide)
- Confirm your products are on the allowed-foods list
- Note your annual sales cap
- Check whether your county or city adds extra rules (Texas counties especially)
- Take your food handler course if your state requires one (usually $10, online)
Phase 2: Set up the business (Days 4-10)
Most of this is free or under $200 total:
- Pick a business name and check it's not taken in your state
- Register a DBA or form a single-member LLC (LLC is $50-$300 depending on state)
- Get an EIN from the IRS (free, takes 10 minutes online)
- Open a separate business checking account
- Set up sales tax registration if your state taxes food
Phase 3: Build your menu and labels (Days 11-21)
This is where most people slow down and start over-thinking:
- Pick 3-5 products you can make in batches of 20+
- Test each with 3 honest people and tweak
- Calculate food cost per unit
- Set prices at 3-4x food cost minimum
- Build a label template with the 6 required elements
Phase 4: Set up how customers buy (Days 22-30)
Don't try to do this part on Instagram DMs. You'll quit by month 2.
- Set up a FoodDropr storefront with your menu, prices, and pickup window
- Take real photos of every product (phone is fine, natural light, white plate)
- Choose ONE pickup window per week to start
- Write a 2-3 sentence story for your About section
Phase 5: Launch and get your first 10 customers (Days 31-45)
These first sales matter less for revenue and more for proof that it works.
- Post your link in 2-3 local Facebook groups (read group rules first)
- Tell 20 people directly — friends, neighbors, coworkers
- Set up an Instagram with a link to your storefront
- Hand out a card at every pickup with your storefront link
- Ask every customer for a review or testimonial
