Cottage Food Law: The Basics
Most people starting a freeze-dried food business in Texas will begin here — as a cottage food production operation (producer), not a licensed manufacturer. Here's what that actually means. Who's the producer, who's the vendor. If you're the one drying and packaging the food yourself, you're the producer. A separate role exists — a cottage food vendor — for someone who didn't make the food but has a registered contract to resell a producer's product. That distinction matters because the two roles have different rules. The revenue cap. As a cottage food producer, you can earn up to $150,000 in gross annual revenue before you're required to step up to a full Food Manufacturer License. This was raised from $50,000 by Senate Bill 541, effective September 1, 2025 — a recent and significant change. How you're allowed to sell, direct. You can sell face-to-face (farmers markets, farm stands, or a location the buyer picks) and you can take orders online — but if you sell online, the law requires a real person (you, an employee, or a household member) to personally deliver it. No shipping carriers. This keeps cottage sales personal and local rather than functioning like a shipping business. Selling through a store, without becoming a manufacturer. As of September 1, 2025, there's a new wholesale path: you can sell to a registered cottage food vendor, who can then resell your product at a farmers market, farm stand, restaurant, or any retail store. This means a local shop can carry your product without you needing a full manufacturer license — as long as the vendor is properly registered and under contract with you, and the product doesn't require temperature control for safety (freeze-dried food generally qualifies). The label everyone forgets. Any cottage food product — sold directly or through a vendor — must disclose where it came from. The required wording: "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." Labels also need a production date. Cross the $150,000 cap, or want to sell outside these channels? That moves you into Food Manufacturer License territory — covered under our DSHS Licensing tag.