To start a cottage food business in Maryland, you confirm your product, label it correctly, and start selling — there's no license for direct sales (free registration only if you sell into retail stores), a $50,000 cap, and unusually broad channels including online, mail delivery, and retail. Maryland now even allows refrigerated baked goods like cheesecakes and cream pies. This is the step-by-step playbook; for the full legal detail, see our Maryland cottage food law guide.

The short version: Maryland requires no license or permit for direct sales (registration with the Maryland Department of Health is free and only needed to sell into retail stores). The cap is $50,000/year, and a pending bill (HB 535) would raise it to $100,000 on October 1, 2026. Maryland now allows refrigerated baked goods — cheesecakes, cream pies, custard pies, meringue pies, fresh fruit tarts — under SB 701, on top of the usual shelf-stable foods. You can sell from home, at markets and events, by personal or mail delivery, online, and into retail stores. Confirm your product, label it, and you can start.

How Do You Start a Cottage Food Business in Maryland? (Step by Step)

1. Confirm your product. Non-perishable foods plus refrigerated baked goods (cheesecakes, cream/custard/meringue pies, fruit tarts). Check yours in our Maryland cottage food law guide.
2. No license needed for direct sales — there's nothing to apply for to sell directly.
3. Register free with the Maryland Department of Health only if you'll sell into retail stores.
4. Set up safe home production — handle refrigerated baked goods carefully.
5. Label every product with your name and address, ingredients, allergens, net weight, and "This product is exempt from Maryland's food safety regulations."
6. Make your first sale — track sales toward the $50,000 cap.

How Much Does It Cost to Start a Cottage Food Business in Maryland?

Maryland is inexpensive because there's no license fee:

• License / permit: $0 for direct sales (free MDH registration for retail)
• Labels and packaging: $20–$100 to start
• First batch of ingredients: $30–$150
• Optional food-safety course: $10–$15 (good practice, not required)
• Online storefront: $10/month with Homegrown (0% commission)

Most Maryland sellers start for under $150.

How Long Does It Take to Start in Maryland?

You can start quickly for direct sales:

• Day 1: Confirm your product, design your label.
• Day 2–3: Make your first batch, photograph products, set up a storefront.
• Day 4+: Take your first orders (register with MDH first only if selling into retail).

What Can You Sell as a Maryland Cottage Food Business?

Maryland allows shelf-stable foods (baked goods, jams, candies, dry mixes) plus refrigerated baked goods under SB 701 — cheesecakes, cream pies, custard pies, meringue pies, and fresh fruit tarts. The full allowed/prohibited lists and labeling rules are in our Maryland cottage food law guide and cottage food labeling guide.

Where Can You Sell in Maryland?

Maryland is one of the most flexible states on channels:

• Directly to customers in person and from home
• At farmers markets and events
• By personal or mail delivery, and online
• Into retail stores (with free MDH registration)

Because Maryland allows online, mail, and retail sales plus refrigerated baked goods, a real storefront makes selling far easier — especially for perishables that need scheduled pickup. Homegrown gives Maryland cottage food sellers an online storefront with built-in payments and pickup or delivery for $10/month at 0% commission — you keep every dollar except standard card processing. Start a free trial and have a Maryland-ready storefront live in about 15 minutes.

How Much Can You Make Selling Cottage Food in Maryland?

The cap is $50,000/year (a pending bill may raise it to $100,000 on October 1, 2026 — confirm before relying on it). To get the most out of it:

• Sell refrigerated baked goods — cheesecakes and cream pies are now allowed and high-margin.
• Use every channel — online, mail, and retail are all open to you.
• Price for profit — cover ingredients, packaging, your time, and card processing, then add margin.
• Build repeat buyers — weekly pickup, pre-orders, and seasonal boxes make income steady.
• Track gross sales against the $50,000 cap.

What Mistakes Should You Avoid When Starting in Maryland?

• Selling into retail without registering — direct sales need no registration, but retail does (free MDH registration).
• Mishandling refrigerated baked goods — they're newly allowed but need safe handling.
• Assuming the cap is $100,000 — that's a pending bill; the current cap is $50,000.
• Missing the label statement — the "exempt from Maryland's food safety regulations" line is required.
• Underpricing — new sellers often forget to pay themselves; cost out your time.

Do You Need an LLC or to Worry About Taxes in Maryland?

Starting a cottage food business doesn't require an LLC, but it's worth understanding the basics: see whether you need an LLC to sell food from home and how cottage food taxes work on Schedule C. In Maryland you may also need a sales-and-use tax license from the Comptroller depending on what you sell.

Frequently Asked Questions

Do you need a license to start a cottage food business in Maryland?

No license for direct sales. Registration with the Maryland Department of Health is free and only needed if you sell into retail stores.

How much does it cost to start a cottage food business in Maryland?

Often under $150 — there's no license fee for direct sales, so your main costs are labels, packaging, and ingredients. An online storefront adds $10/month.

How much can you make selling cottage food in Maryland?

The cap is $50,000/year. A pending bill (HB 535) would raise it to $100,000 on October 1, 2026 — confirm current status before relying on it.

What can you sell as a Maryland cottage food business?

Shelf-stable foods plus refrigerated baked goods under SB 701 — cheesecakes, cream pies, custard pies, meringue pies, and fresh fruit tarts.

Can you sell cottage food online or to stores in Maryland?

Yes — Maryland allows direct, online, mail, and retail sales. Retail requires free registration with the Maryland Department of Health.

How long does it take to start in Maryland?

You can start quickly for direct sales — there's nothing to apply for. Retail selling needs free MDH registration first.

Do you need an LLC to sell food from home in Maryland?

No. Most sellers start as sole proprietors. An LLC is optional and mainly about liability protection if you scale.

Start Your Maryland Cottage Food Business

Maryland is one of the most flexible states — no license for direct sales, refrigerated baked goods allowed, and online/mail/retail all open. Confirm your product, label correctly, and set up an easy way for customers to order and pay. Set up a Homegrown storefront to take Maryland cottage food orders online, see the best platform to sell food from home, read the full Maryland cottage food law, and compare other states on our cottage food laws by state hub.

*This guide is general information, not legal advice. Cottage food rules change — verify current requirements with the Maryland Department of Health before you start selling. Last verified: June 2026.*

Selling at farmers markets? See our Maryland farmers market vendor permit guide for the permits you need on market day.