Vermont was the first state to create laws specifically for home bakers, and they still lead the way as one of the only states to allow almost any food item to be produced and sold from the home.  

Like most states, Vermont has a specific Home Bakery license for those that only want to sell low-risk baked goods out of their standard kitchen.  They even allow those that sell less than $125 of goods per week to skip the licensing and inspection process altogether.  

There is also a special Home Caterer license (section 5-202-2) for sellers that produce on-demand or prepackaged foods and have standard home kitchen equipment.  However, home cooks that are willing to update their kitchen with commercial equipment can sell almost any type of food.

There are a lot of different laws, but this page focuses on the requirements for getting a Home Bakery license.  Although Vermont is very friendly to home-based operations, there are still some limitations.  A home bakery needs to apply for a license ($100 annually) and then get a kitchen inspection.  

Also, as the name implies, the foods allowed are limited to baked goods only, while jarred goods like jams and jellies (common in other states’ laws) require a full food processor license (unless sales are under $10,000 per year).  

Sales from a home bakery must be made directly to consumers, preventing bakers from selling to restaurants or retail stores (though there is a separate Small Commercial Bakery license for the bakers that want to).  

Fortunately, once the home bakery is setup, there is no limit to the amount of goods it can sell. More information about the any of the licenses can be found on the health department’s food establishment guide.