To start a cottage food business in Oregon, you get a $10 food handler card, pick your path — the fee-free Cottage Food Exemption (capped at $52,700 for 2026) or a Domestic Kitchen License ($208/year) to exceed the cap or ship out of state — confirm your product, label it, and start selling. This is the step-by-step playbook; for the full legal detail, see our Oregon cottage food law guide.
The short version: Oregon's Cottage Food Exemption requires no license — just an Oregon food handler card ($10) — and lets you sell shelf-stable foods up to a CPI-indexed cap of $52,700 in 2026. If you want to exceed the cap, ship out of state, or sell foods outside the exemption, you can get a Domestic Kitchen License ($208/year) with an ODA inspection. Farmers who grow their ingredients have a separate Farm Direct path. No TCS, meat, fish, or marijuana under the exemption. Every label needs Oregon's specific homemade statement. Get your card, pick your path, and you can start.
Costs depend on your path:
Most Oregon sellers start for under $150 on the exemption path.
On the exemption path you can start quickly — the food handler card is the main step:
The Cottage Food Exemption covers shelf-stable foods — baked goods, jams, candies, dry mixes. No TCS, meat, fish, or marijuana. The Domestic Kitchen License allows a broader range. The full allowed/prohibited lists and labeling rules are in our Oregon cottage food law guide and cottage food labeling guide.
Your channels depend on your path:
Because Oregon allows online ordering with local pickup, a real storefront makes selling far easier — and helps you track sales toward the $52,700 cap. Homegrown gives Oregon cottage food sellers an online storefront with built-in payments and pickup for $10/month at 0% commission — you keep every dollar except standard card processing. Start a free trial and have an Oregon-ready storefront live in about 15 minutes.
The exemption cap is $52,700 for 2026 (CPI-indexed). To exceed it, use the Domestic Kitchen License (no cap). To get the most out of it:
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. Oregon has no statewide sales tax, which keeps things simple.
The Cottage Food Exemption needs no license — just a $10 food handler card. A Domestic Kitchen License ($208/year, with ODA inspection) is optional for exceeding the cap, shipping out of state, or selling beyond the exemption.
The exemption path is free aside from the $10 food handler card. The Domestic Kitchen License is $208/year. Plus labels, packaging, and ingredients — most sellers start under $150.
The exemption cap is $52,700 for 2026 (CPI-indexed). The Domestic Kitchen License has no cap.
Under the exemption: shelf-stable foods only (no TCS, meat, fish, or marijuana). The Domestic Kitchen License allows a broader range.
Not on the exemption path — you'd need the Domestic Kitchen License for out-of-state shipping.
Quickly on the exemption path (the food handler card is the main step). The Domestic Kitchen License adds an application and inspection.
No. Most sellers start as sole proprietors. An LLC is optional and mainly about liability protection if you scale.
Oregon gives you a free path up to $52,700 and a license for more. Get your food handler card, pick your path, label correctly, and set up an easy way for customers to order and pay. Set up a Homegrown storefront to take Oregon cottage food orders online, see the best platform to sell food from home, read the full Oregon 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 Oregon Department of Agriculture before you start selling. Last verified: June 2026.*
Selling at farmers markets? See our Oregon farmers market vendor permit guide for the permits you need on market day.
