To start a cottage food business in Vermont, you take a free Health Department online training, file an annual exemption form, confirm your product, label it, and start selling — under the cottage food operator exemption you can sell up to $30,000/year with no license, and home bakers selling under $125/week need no license at all. This is the step-by-step playbook; for the full legal detail, see our Vermont cottage food law guide.
The short version: Vermont's cottage food operator exemption covers up to $30,000 of cottage foods per year (plus up to $10,000 of processed foods under a separate exemption) with no license. Home bakeries selling under $125/week need no license or inspection; above that, a home baker license costs $100. To claim the exemption you take a free Health Department online training (covering the Manufactured Food Rule) and file an exemption form by January 15 each year. Allowed foods are shelf-stable items, and labels need the "home kitchen not inspected by the Vermont Department of Health" statement.
Vermont is inexpensive on the exemption:
Most Vermont sellers start for under $150 on the exemption.
You can start quickly — the training and form are the main steps:
Vermont allows shelf-stable foods — baked goods, jams, candies, and dry mixes — under the cottage food operator exemption (with a separate exemption for some processed foods). The full allowed/prohibited lists and labeling rules are in our Vermont cottage food law guide and cottage food labeling guide.
Vermont cottage food is sold direct to consumers:
Because Vermont allows online ordering with local pickup, a real storefront makes selling far easier — and helps you track sales toward the $30,000 exemption. Homegrown gives Vermont 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 a Vermont-ready storefront live in about 15 minutes.
The cottage food operator exemption covers up to $30,000/year (plus up to $10,000 of processed foods separately). 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. In Vermont you may also need to register for sales tax with the Department of Taxes depending on what you sell.
The cottage food operator exemption (up to $30,000/year) needs no license — just free Health Department training and an annual exemption form. Home bakers under $125/week need no license; above that, a $100 home baker license applies.
The exemption path is free (training and form). A home baker license is $100 only if you exceed $125/week. Plus labels, packaging, and ingredients — most sellers start under $150.
The cottage food operator exemption covers up to $30,000/year, with a separate exemption for up to $10,000 of processed foods.
Shelf-stable foods — baked goods, jams, candies, and dry mixes — under the exemption.
Quickly — the free training and exemption form are the main steps.
No. Most sellers start as sole proprietors. An LLC is optional and mainly about liability protection if you scale.
Vermont's exemption keeps it cheap — free training, up to $30,000, and no license for small home bakers. Complete the training, file your form, label correctly, and set up an easy way for customers to order and pay. Set up a Homegrown storefront to take Vermont cottage food orders online, see the best platform to sell food from home, read the full Vermont 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 Vermont Department of Health before you start selling. Last verified: June 2026.*
