Cottage Food Law Limits Sales Amount. How Much In Sales Do You Make?

Business By cadaless31 Updated 5 days ago by johnson6ofus

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cadaless31 Posted 6 days ago
post #1 of 2

Hi, I am currently located in Delaware. I just found out that last year the state allowed for at home based baking businesses to operate under Cottage Food Laws. However, they place a restriction on the amount of sales per year to $25,000 or less. I am worried that this would really limit my potential.  We are looking to move and I don't want to stay in DE if I don't have the potential to grow. I have two small children so it may take time for me to reach this amount but I am looking at the future. What do you all think? How much do you make a year? I know there will be folks making alot more than this, but is the average person surpassing this in one or two years?

Another question- what forms of payment do you accept? It seems if I want to invoice via Paypal or Square Up I would also be prohibited in DE as this is viewed as 'online sales' as the customer would need to use a web browser. Thank you!

1 reply
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johnson6ofus Posted 5 days ago
post #2 of 2

This sounded strange, so for fun...I researched it (I am in Texas, so only google as a source). The strange was about payment, to me.

I see that it is really geared for "face to face" or farmer's markets. So, you can't sell on Facebook, but you can accept a credit card (theoretically processed through the internet) at a farmer's market. I don't see that if I met you at a farmer's market, we agreed on a cake, and then you sent me an invoice that would be a violation as the sale was "made" face to face. Since you can only sell face to face, I don't see how receiving payment would be a problem. Cash, check, or charge. grinning

Can't help with growing a business to exceed $2K per month in sales, as this is not my main biz....sorry.

VERY restrictive cottage food law you got there.

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