The best platform to sell sourdough in Michigan is Homegrown, which gives you an online storefront for $10 per month with local pickup and delivery scheduling, inventory management, and built-in card processing — no website, no marketplace fees, and no percentage taken from your sales. Michigan allows homemade bread sales under the Michigan Cottage Food Law, and sourdough has become one of the most sought-after artisan products at Michigan farmers markets.
The short version: Michigan's cottage food law allows direct-to-consumer sales of homemade baked goods with an annual sales cap of $25,000. No license or inspection is required. Sourdough bread commands premium pricing ($8-$14 per loaf) and builds a devoted repeat customer base. Homegrown ($10 per month annual, $12.50 monthly) handles ordering, payments (2.9% + $0.30 per transaction), pickup scheduling, and inventory. Other options include Square Online (free with Square branding), Etsy (6.5% per transaction plus listing fees), and Shopify ($39+ per month).
Michigan's Cottage Food Law (Public Act 208 of 2010) permits the sale of cottage food products:
Sourdough products that qualify:
Michigan's sourdough market has unique characteristics:
Homegrown is built for local food vendors who sell through pickup or local delivery and farmers markets. You list your products, set pickup locations and times, and share one link.
Here is what Homegrown includes:
Pros:
Cons:
Best for: Michigan sourdough bakers selling through pickup and farmers markets.
Start your free 7-day trial with Homegrown.
Etsy provides marketplace visibility. On a $12 loaf, Etsy fees total approximately $1.56 — roughly 13% of the sale.
Pros:
Cons:
Best for: Michigan bakers selling starter kits nationally.
Square Online syncs with Square POS for market sales.
Pros:
Cons:
Best for: Michigan bakers already using Square.
Shopify at $39 per month is more infrastructure than a cottage food sourdough business needs.
Best for: Sourdough businesses scaling into commercial operations.
| Feature | Homegrown | Etsy | Square Online (Free) | Shopify |
|---|---|---|---|---|
| Monthly cost | $10 (annual) | $0 (listing fees) | $0 | $39+ |
| Transaction fee | 0% | 6.5% | 0% | 0% |
| Card processing | 2.9% + $0.30 | 3% + $0.25 | 2.9% + $0.30 | 2.9% + $0.30 |
| Total fees on $12 loaf | ~$0.65 | ~$1.56 | ~$0.65 | ~$0.65 |
| Local pickup | Yes (built-in) | Workaround | Basic | With apps |
| Local delivery | Yes (built-in) | No | Basic | With apps |
| Inventory tracking | Yes | Basic | Basic | Yes |
| Food-specific | Yes | No | No | No |
| Setup time | ~15 min | 30-60 min | 30-60 min | 4-8 hours |
On $1,000 per month in sourdough sales, Etsy fees total approximately $130 while Homegrown costs $10 plus approximately $59 in card processing — a $61 per month difference. With Michigan's $25,000 cap, keeping fees low is especially important.
Food safety education for cottage food producers is available from University of Wisconsin Extension FYI, and food safety research for home food production is available from NC State University Food Safety.
Start your free 7-day trial with Homegrown.
Ready to start selling locally? The easiest way to take local orders and get paid is an online storefront — see the best platform to sell food from home, or set up a Homegrown storefront in about 15 minutes ($10/mo, 0% commission).
Yes. Sourdough bread qualifies under Michigan's Cottage Food Law as a non-potentially-hazardous baked good. No license, permit, or health inspection is required. You can sell up to $25,000 per year directly to consumers at farmers markets, farm stands, from your home, and through online orders with in-person pickup or delivery.
Michigan's cottage food sales cap is $25,000 per year. This is lower than some neighboring states (Ohio at $75,000, for example). At $10 per loaf, the cap allows up to 2,500 loaves per year, or approximately 48 loaves per week. Most home sourdough bakers operate well within this cap.
No. Michigan's Cottage Food Law does not require any license, permit, or inspection for cottage food producers selling under the $25,000 annual cap. You must follow labeling requirements and sell directly to consumers only.
Standard sourdough loaves sell for $8-$12 in Michigan markets. Specialty loaves (cherry walnut, rosemary, everything, jalapeño cheddar) sell for $10-$14. Sourdough focaccia sells for $10-$16. Ann Arbor, Grand Rapids, and northern Michigan resort towns support premium pricing. Smaller towns and rural markets may require prices at the lower end of the range.
Ann Arbor Farmers Market (year-round, strong artisan food culture), Grand Rapids Downtown Market, Traverse City Sara Hardy Farmers Market (heavy tourist traffic), Detroit Eastern Market (one of the largest in the country), and Royal Oak Farmers Market. Michigan has over 300 farmers markets statewide.
Classic sourdough loaves are the top seller. Michigan-specific seasonal varieties perform well: cherry walnut sourdough (during cherry season), apple cinnamon sourdough (fall), and cranberry orange sourdough (holiday season). Sourdough cinnamon rolls sell strongly on Saturday market mornings. Starter kits sell year-round as gifts and for home bakers.
Yes. Michigan's cottage food law permits direct-to-consumer delivery. Many Michigan bakers deliver within a 15-20 mile radius for a $5-$10 fee. Delivery is especially popular during Michigan's harsh winters when customers prefer not to travel for pickup. Most bakers offer both pickup and delivery options.
Michigan cottage food labels must include: product name, ingredients list, net weight, your name and address, the date the product was made, and the disclaimer: "Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture & Rural Development." Include common allergen warnings for wheat and any other allergens.
Michigan's cold winters slow fermentation significantly — expect longer bulk ferment times from November through March. A proofing box or warm spot in your kitchen helps maintain consistent fermentation temperature. Michigan's moderate summer humidity is generally favorable for sourdough — less extreme than southern states. Many Michigan bakers find fall and spring produce the most predictable results.
Yes. Michigan's cottage food law permits sales at farmers markets, farm stands, and directly from your home. Most craft fairs and holiday markets accept cottage food vendors. These events are excellent for sourdough sales, especially during the holiday season when customers are looking for artisan bread and food gifts.
Track your gross sales throughout the year. When you approach the cap, you have three options: stop selling for the remainder of the year, apply for a food establishment license from the Michigan Department of Agriculture & Rural Development (which removes the cap but adds inspection requirements), or rent time in a licensed shared-use kitchen. Many growing Michigan bakers transition to a shared kitchen to exceed the cap while keeping overhead lower than a standalone commercial space.
King Arthur bread flour is the most popular choice. Michigan also has local grain options — Grand Traverse Culinary Oils and other Michigan producers offer locally grown and milled grains that add a local story to your sourdough. Whole wheat, rye, and heritage grain varieties from Michigan farms differentiate your product at markets where "local" matters to customers.
Yes. Michigan has active cottage food communities on Facebook, including groups specifically for Michigan cottage food producers. Michigan State University Extension provides resources on cottage food regulations, food safety, and business development. The Michigan Farmers Market Association connects producers with market opportunities across the state.
Selling at state parks typically requires a vendor permit from the Michigan Department of Natural Resources, separate from cottage food law compliance. Public events, festivals, and community gatherings are generally permitted sales channels under the cottage food law. Each event may have its own vendor requirements. Contact event organizers directly to confirm their cottage food vendor policies.
Consistency is the foundation — bake the same varieties on the same schedule each week so customers know when to order. Offer a weekly subscription or standing order option through your online storefront. Many Michigan bakers text or email their customer list on Wednesday when the weekend order window opens. Loyalty programs (buy 10 loaves, get 1 free) work well for sourdough because customers already buy weekly. Michigan's tight-knit communities mean word of mouth is your strongest growth channel — every satisfied repeat customer brings 2-3 new ones.
Yes. Michigan's cottage food law allows online ordering as long as the actual transfer of goods happens in person — either through customer pickup at your home, a designated pickup location, or through personal delivery. You cannot ship cottage food products through USPS, UPS, or FedEx under the cottage food law. An online ordering platform like Homegrown handles the order and payment, then you schedule in-person pickup or delivery to complete the sale.
Start with 12-20 loaves per week across 2-3 varieties. This is enough to test demand without overcommitting on supplies or kitchen time. A standard sourdough loaf requires about $1.50-$2.50 in flour and ingredients, so 20 loaves costs $30-$50 in materials against $160-$240 in revenue at $8-$12 per loaf. Scale up by 5-10 loaves per week as demand grows. Most Michigan home bakers who sell year-round settle into a rhythm of 30-60 loaves per week, well under the $25,000 annual cap.
Michigan's cottage food law does not require liability insurance, but many bakers carry a home-based business rider on their homeowner's or renter's insurance. This typically costs $150-$300 per year and covers product liability claims. Some farmers markets require proof of insurance as a condition of vendor participation, so check with your target markets before your first season. The cost is modest relative to the protection it provides.
Most Michigan sourdough bakers use kraft paper bags, which allow the crust to breathe and maintain texture. Plastic bags trap moisture and soften the crust within hours. For markets, use bags with a clear window so customers can see the loaf. Attach your cottage food label to the bag with a sticker or stamp. For delivery orders, paper bags inside a larger kraft paper shopping bag work well. Some bakers use cloth bread bags as a premium option — customers return and reuse them, which builds brand loyalty.
Your products deserve a storefront where the listed price is what your customer pays — no marketplace fees, no checkout surcharges, no percentage taken from every sale. Homegrown gives food vendors a shareable ordering link, built-in payments, and local pickup and delivery scheduling for $10 per month flat. Start your free 7-day trial.
