Cottage Foods - Starting a Business

What steps do I need to take to start preparing and selling Cottage Foods?
1.) Review the Cottage Foods Act.
2.) Complete a food safety course.
3.) Contact your local city and county offices to see if you need a business license.
 
If I produce muffins, does the Act allow me to earn up to $10,000 for each type (blueberry, banana, chocolate chip)?
Yes.
 
What type of food safety training is required?
The following training options satisfy the requirements:
www.online.colostate.edu/topics-of-study/agriculture (online)
www.statefoodsafety.com (you'll want to take the "Food Handlers Card training" module).

 
In-person classes may be available through your county extension office or local health department. For more information, you can visit CSU's Farm to Table site.
 
Where can I find tax and business license requirements for cities/counties in Colorado?
Your cottage food business is subject to income tax, and in some jurisdictions, you may need to get additional licenses or pay additional taxes.
 
For more information, visit the Publications section of the Department of Revenue Taxation Division at https://www.colorado.gov/pacific/tax/fyi-publications-sales-tax (clicking this link will open in a new window).
 
Publications 4, 8, and 55 are great resources to understand the tax requirements for your business.
 
We also recommend seeking advice from an accountant or tax professional.
 
Do I have to register my business with the state?
Registration is not required; however you may chose to register your business with the Secretary of State. Register with Secretary of State (clicking this link will open in a new window).
 
What else do I need to know?
There are varying business license requirements specific to each jurisdiction, including county and city. Contact your local business licensing department for information.