Gaithersburg, MD Home Business: Cottage Food Operations (2026)

Maryland's Cottage Food Law (Health-General Article 21-330) provides a straightforward pathway for Gaithersburg residents to start a small-scale food business from their home kitchen with minimal regulatory burden. The law exempts qualifying cottage food operations from the commercial food facility licensing, plan review, and inspection requirements that apply to restaurants, bakeries, and other commercial food establishments regulated by the Maryland Department of Health and Montgomery County Department of Health and Human Services. To qualify for the cottage food exemption, the operation must meet several requirements. First, only non-potentially hazardous foods may be prepared and sold. Non-potentially hazardous foods are those that do not require temperature control for safety because they have low water activity, high acidity, or other characteristics that prevent the growth of harmful bacteria. Qualifying products include breads, rolls, cookies, brownies, cakes and cupcakes (without cream cheese, custard, or meringue frostings or fillings), muffins, pies (fruit pies only, not custard or cream), candies and confections, jams, jellies, preserves, fruit butters, honey, dry herbs and herbal tea blends, spice mixes, dry baking mixes, popcorn, kettle corn, granola, trail mix, nut butters, and dried fruits. Foods that are not permitted include anything requiring refrigeration (cream-based frostings, cheesecakes, custard-filled pastries), meat and poultry products, dairy products (cheese, yogurt, butter), canned vegetables (low-acid foods requiring pressure canning), fermented foods like kimchi or kombucha, and any product containing cannabis or CBD. Second, annual gross sales may not exceed $25,000. Operations exceeding this threshold must obtain a commercial food facility license. Third, all sales must be direct to the end consumer. This means face-to-face transactions at farmers markets, farm stands, community events (such as Gaithersburg's Kentlands farmers market), craft fairs, and from the home kitchen itself. Wholesale distribution to grocery stores, convenience stores, restaurants, or coffee shops is not permitted. Online sales with shipping are also not covered by the cottage food exemption, though some operators accept online orders for local pickup. Fourth, all products must be properly labeled. Each package must include the producer's full legal name, home address, product name, complete list of ingredients in descending order of predominance, allergen declarations for the eight major allergens (milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans), net weight or volume, and the following statement in at least 10-point type: This product was made in a home kitchen that is not inspected by the State of Maryland. Beyond the state cottage food requirements, Gaithersburg operators should be aware that the physical operation of the business from their home is subject to Montgomery County home occupation zoning rules under Chapter 59. A cottage food business with minimal customer visits (5 or fewer per week) qualifies as a No-Impact home occupation with no registration required. Operations with more frequent pickups or customer traffic may need to register as Low-Impact. A Maryland SDAT business registration and trade name filing may also be required depending on the business structure.