North Carolina Cottage Food Laws

Comprehensive Guide to North Carolina Cottage (Home Processor) Food Law

This guide outlines the key legal requirements for starting and operating a home‑based cottage food business in North Carolina under the Home Processor (cottage food) program. It covers allowed products, inspection, labeling, application process, and practical steps, based solely on official NCDA&CS sources.

Quick Facts

1. Overview / Introduction

In North Carolina, the Home Processor program—commonly known as the cottage food law—allows home‑based entrepreneurs to produce and sell low‑risk, shelf‑stable food products from their home kitchen. This is regulated by the North Carolina Department of Agriculture & Consumer Services (NCDA&CS), Food & Drug Protection Division. Your home kitchen must pass an inspection before operating, ensuring compliance with sanitary and food safety standards.(ncagr.gov)

2. Sales Limits

The NC Home Processor program does not specify an annual sales or revenue limit in the publicly available information. There is no mention of dollar‑figure caps, suggesting that sales volume limits are not imposed.(ncagr.gov)

3. Licensing & Registration

Home processors must apply for a Home Processor Inspection. This is done by completing the official Application for Home Processor Inspection and submitting it by email or mail to NCDA&CS. There is no separate license or fee mentioned—rather, successful inspection results in a “Notice of Inspection”, not a traditional permit.(ncagr.gov) Also, you may need to apply for:
• A Sales & Use Tax number (NC‑BR) if you plan to make sales
• A Federal Employer Identification Number (EIN) and NC withholding tax number if you have employees
• A Certificate of Assumed Name, depending on your business structure, via the Register of Deeds or NC Secretary of State
• Optional: a UPC code for retailer requirements (ncagr.gov)

4. Training Requirements

The official NCDA&CS materials do not mention any mandatory training or certification, such as food handler courses. However, for certain products (e.g., acidified foods), you may need to complete specialized courses (e.g. Acidified Food Course) noted under product testing—but not general food safety training.(ncagr.gov)

5. Home Kitchen Inspection

Inspection is required. Your home kitchen must:
• Be free of pets (considered pests), insects, and rodents
• Comply with 21 CFR 117 Subpart B (Good Manufacturing Practices) and NC’s Food, Drug and Cosmetic Act
• Have cleanable food‑contact surfaces, separate hand‑washing and food prep sinks, proper lighting with protective coverings, running hot & cold water, and waste disposal via sewer/septic
• If using well water, include coliform and E. coli test results (within 1 year); municipal users submit a recent water bill
After inspection, an inspector provides a Notice of Inspection and report. Major violations can disqualify you.(ncagr.gov)

6. Allowed Foods

Only low‑risk, shelf‑stable foods are permitted, including:
• Baked goods that do not require refrigeration
• Jams, jellies, preserves
• Candies
• Dried mixes or spices
• Some beverages (ice tea, coffee, lemonade, etc.)
• Some sauces (e.g., balsamic dressing)
• Acid and acidified foods (e.g., pickles, BBQ sauce)
• Freeze‑dried fruits/vegetables (excluding candies)
Some items—particularly sauces, freeze‑dried foods, and acidified products—must undergo shelf‑stability evaluation or lab testing before approval.(ncagr.gov)

7. Prohibited Foods

High‑risk and perishable foods are prohibited, including:
• Refrigerated or frozen items
• Low‑acid canned foods (e.g., jarred fruits or vegetables)
• Dairy products
• Seafood
• Bottled water or juices
• Bakery items with cream or cream cheese fillings, and cheesecakes
• Also, any products made in non‑home kitchens (garages, separate buildings) are excluded and considered commercial.(ncagr.gov)

8. Labeling Requirements

Labels are required when products are: self‑service packaged, sold via retailers, distributors, restaurants, or shipped by mail (e.g., USPS, FedEx). An affixed label must include:

1. Product name
2. Manufacturer’s name and physical address (website not acceptable)
3. Net quantity in ounces/pounds and gram equivalent
4. Complete ingredient list, in descending order by weight, with sub‑components in parentheses (e.g., Butter (cream (milk), salt))
5. All allergens declared in the ingredient list or a “Contains:” statement (e.g., Contains: Milk, Egg, Almonds, etc.)
   Nutritional labels are not required, unless you make nutritional claims (e.g., "low‑fat" or "sugar‑free").
   Labeling exemptions include:
   • On‑demand or custom‑made direct sales (e.g., pickups, deliveries, events)
   • Sales at farmers’ markets or similar venues where products are handed to consumers from behind a counter (not self‑service)
   However, ingredient information must be available upon request.(ncagr.gov)

9. Where You Can Sell

Permissible sales venues include:
• Direct retail from your home (pickup, delivery, special events)
• Farmers’ markets, flea markets, curb/tailgate markets (if not self‑service)
• Retail stores, distributors, restaurants
• By mail or shipping services (USPS, FedEx, etc.)
All such sales requiring packaging must adhere to labeling requirements.(ncagr.gov)

10. Sales Tax

If you conduct sales, you must obtain a Sales & Use Tax number (NC‑BR). If you hire employees, you also need an EIN and a NC withholding tax number.(ncagr.gov)

11. Special Exemptions

Labeling exemptions apply when products are:
• Custom/on‑demand—such as direct pickup, home delivery, or special events
• Served directly to the consumer (e.g., behind a counter) at farmers’ markets or similar venues, so long as it’s not self‑service
In these cases, no affixed label is required, but ingredient details still must be accessible upon request.(ncagr.gov)

12. Getting Started (Practical Steps)

1. Determine eligibility: Confirm that your food products are low‑risk and shelf‑stable. Consult NC State University Extension or NCDA&CS for testing if needed.(ncagr.gov) 2. Check use of kitchen: Ensure you use a home kitchen (not garage/basement). No pets allowed.(ncagr.gov) 3. Zoning & HOA: Contact your city/county planning department and check HOA rules.(ncagr.gov) 4. Water testing: Provide recent municipal water bill or, for well water, lab test results for coliform/E. coli.(ncagr.gov) 5. Develop business plan following NCDA&CS’s detailed checklist (product list, ingredients, storage, flow, transport, sales venues).(ncagr.gov) 6. Apply using the official Application for Home Processor Inspection. Submit via email or mail.(ncagr.gov) 7. Undergo inspection: Expect to be contacted within approximately 8–12 weeks. Address any violations promptly.(ncagr.gov) 8. Prepare labels, adhere to requirements for sales venues. 9. Obtain necessary registrations (sales tax, EIN, assumed name, UPC as needed). 10. Begin selling once cleared.

13. Official Resources

Key NC State resources:
• Home Processor program page: NCDA&CS Food & Drug Protection Division overview
• Application for Home Processor Inspection (PDF): downloadable form
• NCDA&CS Food & Drug Protection Division contact and inspection process details
• NC State University Extension (Product Testing & Food Safety): for lab testing and guidance
• NC Business License Information Office, Register of Deeds, Secretary of State, GS1 US (UPC codes)
• FDA Good Manufacturing Practice Guidelines, referenced for GMP compliance.(ncagr.gov)

Official Sources

This guide was compiled from the following official sources:

• www.ncagr.gov
• www.ncagr.gov
• www.ncagr.gov
• www.ncagr.gov