Shasta County, CA Home Business: Cottage Food Operations (2026)

California's Homemade Food Act (AB 1616, codified at Health and Safety Code 113758 and related sections) lets residents prepare certain non-potentially-hazardous 'cottage foods' - such as baked goods, jams, dried items, and candies on the state's approved list - in their home kitchen and sell them. In Shasta County, the program is administered by the Department of Resource Management's Environmental Health Division, which issues the registration or permit and is the local enforcement agency. State law sets two classes. A Class A cottage food operation engages only in direct sales (selling to the consumer in person - at the home, farmers markets, events, and similar venues) and may have up to $75,000 in verifiable gross annual sales; Class A operators obtain a registration and the registration number must appear on the product label. A Class B operation may engage in both direct and indirect (wholesale) sales - selling through a third-party retailer such as a store or restaurant - and may have up to $150,000 in verifiable gross annual sales; Class B requires a permit, an annual inspection of the home kitchen, and the permit number on the label. Both sales caps are adjusted annually for inflation by the state. Operators must complete approved food-processor training, label products with required information, and follow the state's sanitation rules. Because a cottage food operation is run from the home, it also operates within the County's home-occupation framework; operators should confirm registration/permit details and current fees with Shasta County Environmental Health.