Unlike most states, Iowa allows home bakers to sell many types of baked goods, including perishable baked goods, like cheesecakes, cream pies, and cakes with cream fillings. Home bakeries can sell their baked goods at any venue, but they are limited to $35,000 of sales per year. An annual license and inspection are required.
In addition to this law, Iowa has a cottage food law that allows home cooks to sell almost any kind of non-perishable food without special licensing, but products can only be sold from home or at farmers markets.
In 2016, a new bill (SF 2273) increased the sales limit from $20k to $35k, and changed the term for these businesses from “home food establishments” to “home bakeries”.
This law only allows you to sell baked goods, including many types of perishable baked goods, like cheesecakes. You cannot sell baked goods that contain meat.
Pets are never allowed in your kitchen or in any room where food for your business is stored.
Sales must be recorded, and the record must be made available if the Department of Inspections and Appeals requests it.
You need to get a Home Bakery License from the Department of Inspections and Appeals, which costs $50 each year.
You must get your home kitchen inspected before starting you business.
If you do not use a public water system, your private well must be tested annually. You must maintain a record of your water tests.
Some products require the collection of sales tax, while others are exempt. Check out Iowa’s list of taxable and exempt products to learn more.
Chocolate Chip Cookies
Forrager Cookie Company
123 Chewy Way, Cookietown, IA 73531
Ingredients: enriched flour (wheat flour, malted barley flour, niacin, iron, thiamin mononitrate, riboflavin, folic acid), butter (cream, salt), semi-sweet chocolate (sugar, chocolate, cocoa butter, milkfat, soy lecithin, natural flavors), brown sugar, granulated sugar, eggs, vanilla extract (vanilla bean extract, alcohol, sugar), baking soda, salt (salt, calcium silicate)
NET WT 2 lb 4 oz (1.02 kg)
There are many workplace requirements in the law.
- Department of Inspections and Appeals
- Lucas State Office Building, Third Floor
321 East 12th Street
Des Moines, Iowa 50319-0083