Milpitas, CA Home Business: Cottage Food Operations (2026)

Under the City of Milpitas Comprehensive Zoning Ordinance, Section C.10.130 (Home Occupations), cottage food operations are expressly allowed as home occupations consistent with California Government Code section 51035 and California Health and Safety Code section 114365 et seq. (the California Homemade Food Act). This is a notable carve-out, because the same section otherwise prohibits 'food and beverage processing and preparation' as a home occupation; cottage food is the statutory exception that the state requires cities to permit in residential zones. State law allows two classes of cottage food operation: Class A (direct sales) registers with the local environmental health agency, while Class B (which also allows indirect/wholesale sales) requires a permit and inspection. In Milpitas, the food-safety permit or registration is issued by the Santa Clara County Department of Environmental Health, which approves product labels and requires a food processor (food handler) training course. The operation must use foods on the CDPH-approved cottage foods list. In addition to the county cottage food permit, the operator must comply with the city's home occupation standards (residents only, conducted within the dwelling, no signs, nuisance and vehicle limits) and obtain a Milpitas business license and Home Occupation Permit. The state limits a cottage food operation to a private home kitchen with capped gross annual sales.