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South Dakota Home Sales

Cottage Food Law

In 2011, South Dakota created some extra legislation to extend the Home-Processed Foods Law.  This allows bakers to sell their food directly from home, and it limits yearly sales to only $5,000.  It also doesn’t allow non-baked goods, like jams and preserves, but baked goods do include candy and confections.  There is no registration required to sell, although the processor does need to charge sales tax on their sold products, which requires a standard business license.  Products do need to be shelf-stable without refrigeration, but lab testing is not required.


Internet sales are only allowed if the consumer picks up the product at one of the processor’s home.

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Allowed Foods

Only "non-potentially hazardous" foods are allowed, but certain non-PHFs may not be allowed. Most foods that don't need to be refrigerated (foods without meat, cheese, etc.) are considered non-potentially hazardous. Learn more


Sales are limited to $5,000 per year


Tax application

Although there is no registration process, home processor’s are required to collect sales tax on the goods they sell, which requires submitting a tax application.


Sample Label

Chocolate Chip Cookies

"This product was not produced in a commercial kitchen. It has been home-processed in a kitchen that may also process common food allergens such as tree nuts, peanuts, eggs, soy, wheat, milk, fish, and crustacean shellfish."

Forrager Cookie Company

123 Chewy Way, Cookietown, SD 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)

Produced on 10/22/2020


Law Dates
March 2011
HB 1240

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Starting a cottage food business?


Top 10 Mistakes To Avoid When Starting A Cottage Food Business

(Some of them just might surprise you!)



I was wondering if I sold dinners from my home kitchen what are the requirements to do so? Im new to South Dakota so I was wondering if it was different from state to state.

I am considering selling mini cakes from my home. Since there seem to be alot of cupcake shops in Sioux Falls, I am thinking this may be a little different. I do have food service experience, have worked at the Dairy Queen on S Minnesota for about 10 years. Do I need my kitchen inspected? Would I meet with the health department? Why am I limited to 5000.00 in sales? I recently semi retired, and need additional income, just disappointed that it would be limited. I want to do this right, at the time I am just brainstorming. Thank you.

    Your kitchen does not need to be inspected, nor do you need a permit from the ag dept. Because there is no inspection or permits for these businesses, this law is only intended for those selling a very small amount. For those who want to start a substantial business, they need to use a commercial kitchen, get licensed and trained, etc. However, I’d still recommend starting from home, and here’s some info about dealing with sales limits.