What Is a Tier 1 State?
Tier 1 cottage food states require no state license and no registration before selling. You can start selling homemade food products as soon as your labels comply with state requirements and you stay within the annual gross sales cap. No form to fill out, no agency to notify.
Tier 1 States Include
Alabama, Arizona, Colorado, Florida, Georgia, Iowa, Maryland, Michigan, Missouri, Montana, North Carolina, North Dakota (no cap), Ohio, Oklahoma, South Dakota (no cap), Texas (no cap), Vermont, Virginia, Wisconsin, Wyoming (no cap), and others.
Use the Law Finder to confirm your state's current tier.
Step-by-Step: Starting in a Tier 1 State
- Confirm your state is Tier 1 — use the law finder and verify with your state agriculture department
- Identify your products — confirm they are non-TCS (shelf-stable, no refrigeration required)
- Understand your sales cap — know your state's annual gross limit (some Tier 1 states have no cap)
- Create compliant labels — every product needs a label with all required fields including the state-specific disclaimer
- Set up a simple record-keeping system — track every sale; date, venue, amount
- Find your sales venues — farmers markets, craft fairs, direct home sales
- Start selling
The Most Important Thing in a Tier 1 State
Labeling. Because Tier 1 states have no registration checkpoint, the label is often the only evidence that you are operating legally. A compliant label — with the correct disclaimer language, ingredient list, and your name and address — demonstrates compliance. Get the label right first.