Operating a Cottage Bakery in Mississippi
The Cottage Food Law of Mississippi passed in 2015 and allows food entrepreneurs to operate small food businesses and produce a variety of food products that are low risk from a food safety standpoint, if prepared properly in a private home kitchen. The allowable products list is based on the food safety risk level associated with certain types of food.
Mississippi’s law requires food made in a cottage industry to be labeled with information including the ingredients, allergen information as specified by federal law, the name and address of the business, and a disclaimer that states the product was made in a cottage operation.
WHAT CAN I SELL?
Bread, Bagels, Biscuits, Brownies, Cakes, Cookies, Muffins, Rolls, Scones, Sweet breads, Tortillas, Baked candy, Brittles, Candies, Chocolate, Fudge, Mustards, Pickles, Vinegars, Cereals, Dried fruit (except for melon), Pasta noodles, Spices & Seasonings, Other Pastries, Pies, Jams & jellies, Caramel corn, Chocolate-covered items (except melon or cut fruit), Crackers & Pretzels, Granola, Nuts & seeds, Popcorn, Popcorn balls
WHAT IS PROHIBITED?
Nut Butters, Cheesecakes, anything that needs refrigeration, juices, meat, fish, poultry, dairy products (including custard pies), eggs (other than air-dried hard cooked eggs with intact shell), cooked vegetables, raw seed sprouts, sliced melons, garlic and other fresh herbs in oil, cooked potatoes, legumes, and beans. They also include low-acid canned foods (vegetables, meats and seafood, others with pH >4.6), smoked fish, pasteurized and pre-cooked foods.
HOW MUCH CAN I SELL?
You are limited to $20,000.00 in gross sales.
WHERE CAN I ADVERTISE?
The Cottage Food Bill prohibits the sale or offer for sale cottage food products over the Internet (including Facebook and other media), by mail order, or at wholesale or to a retail establishment. You may advertise via print, television, or radio, but cannot be included on any internet platform (i.e.
newspaper ad, but ad cannot be viewed online on the newspaper site). Sales must be directly from the producer to the end consumer.
AM I REQUIRED TO REPORT MY INCOME?
Yes. You are required to report any income to the IRS.
AM I REQUIRED TO COLLECT SALES TAX?
Yes. You are required to register with the tax commission and collect and pay sales tax on any goods sold in the State of Mississippi.
WHAT LICENSES OR REGISTRATIONS DO I NEED?
The law does not require you to have any licenses, certifications, or registrations. There are however several that are required by the federal, state, county, and city governments in which you may reside.
• Register with the IRS and receive an EIN number for tax purposes
• Register with the MS State Department of Revenue to receive a state tax id number
• Register your business name with the Secretary of State and form the applicable business (LLC, Partnership, Corporation, etc.)
• Register with the MS Department of Unemployment Security if you plan to have employees.
• Check with your insurance carrier to see if you are permitted to operate a home business under your current coverage (may have to purchase an additional rider)
• Check with the city/county in which you reside for business licensing requirements. The following are what is required along the Mississippi Gulf Coast of Mississippi:
o Jackson County requires a business license for a home based business, however they do not allow your customers to visit your business for pickup. All sales must be delivered or sold at a farmers market or festival
o Harrison County requires a Conditional Use Permit to operate a home based business. You will
have to go in front of the planning commission for approval for the business license.
Neighborhood covenants may prohibit you from operating a home based business.
o Hancock County requires you to obtain a county tax license prior to obtaining a business license. If there are any complaints from area neighbors about the amount of traffic visiting your home, your license could be revoked.
o City of Ocean Springs requires a Home Occupancy License (if you do not own the home, you will need permission from the home/property owner) as well as a Privilege license to do business
within the city.
o City of Biloxi requires a Home Occupancy License (if you do not own the home, you will need permission from the home/property owner) as well as a Privilege license to do business within
the city.
o City of D’Iberville requires a Home Occupancy License (if you do not own the home, you will need permission from the home/property owner) as well as a Privilege license to do business within
the city.
o City of Gulfport requires you to submit a business application on the first Tuesday of the month to be placed on the review board docket of the following month. The notice of application will be printed in the paper to allow any nearby residents a chance to attend the review board and voice any opposition. The review board will then decide if you may operate within the city. If approved, you will then be required to obtain a Privilege license to do business within the city.
o City of Long Beach requires you to submit a business application to be placed on the review board docket of the following month. The notice of application will be printed in the paper to allow any nearby residents a chance to attend the review board and voice any opposition. The review board will then decide if you may operate within the city. If approved, you will then be required to obtain a Privilege license to do business within the city.
WILL I BE SUBJECT TO HEALTH DEPARTMENT INSPECTION?
Only if there is a report of violation or complaint is reported.
WHAT IF I VIOLATE THE ABOVE LISTED REQUIREMENTS?
You could be fined anywhere from $250.00 to over $10,000.00 depending on the violation.
Mississippi’s law requires food made in a cottage industry to be labeled with information including the ingredients, allergen information as specified by federal law, the name and address of the business, and a disclaimer that states the product was made in a cottage operation.
WHAT CAN I SELL?
Bread, Bagels, Biscuits, Brownies, Cakes, Cookies, Muffins, Rolls, Scones, Sweet breads, Tortillas, Baked candy, Brittles, Candies, Chocolate, Fudge, Mustards, Pickles, Vinegars, Cereals, Dried fruit (except for melon), Pasta noodles, Spices & Seasonings, Other Pastries, Pies, Jams & jellies, Caramel corn, Chocolate-covered items (except melon or cut fruit), Crackers & Pretzels, Granola, Nuts & seeds, Popcorn, Popcorn balls
WHAT IS PROHIBITED?
Nut Butters, Cheesecakes, anything that needs refrigeration, juices, meat, fish, poultry, dairy products (including custard pies), eggs (other than air-dried hard cooked eggs with intact shell), cooked vegetables, raw seed sprouts, sliced melons, garlic and other fresh herbs in oil, cooked potatoes, legumes, and beans. They also include low-acid canned foods (vegetables, meats and seafood, others with pH >4.6), smoked fish, pasteurized and pre-cooked foods.
HOW MUCH CAN I SELL?
You are limited to $20,000.00 in gross sales.
WHERE CAN I ADVERTISE?
The Cottage Food Bill prohibits the sale or offer for sale cottage food products over the Internet (including Facebook and other media), by mail order, or at wholesale or to a retail establishment. You may advertise via print, television, or radio, but cannot be included on any internet platform (i.e.
newspaper ad, but ad cannot be viewed online on the newspaper site). Sales must be directly from the producer to the end consumer.
AM I REQUIRED TO REPORT MY INCOME?
Yes. You are required to report any income to the IRS.
AM I REQUIRED TO COLLECT SALES TAX?
Yes. You are required to register with the tax commission and collect and pay sales tax on any goods sold in the State of Mississippi.
WHAT LICENSES OR REGISTRATIONS DO I NEED?
The law does not require you to have any licenses, certifications, or registrations. There are however several that are required by the federal, state, county, and city governments in which you may reside.
• Register with the IRS and receive an EIN number for tax purposes
• Register with the MS State Department of Revenue to receive a state tax id number
• Register your business name with the Secretary of State and form the applicable business (LLC, Partnership, Corporation, etc.)
• Register with the MS Department of Unemployment Security if you plan to have employees.
• Check with your insurance carrier to see if you are permitted to operate a home business under your current coverage (may have to purchase an additional rider)
• Check with the city/county in which you reside for business licensing requirements. The following are what is required along the Mississippi Gulf Coast of Mississippi:
o Jackson County requires a business license for a home based business, however they do not allow your customers to visit your business for pickup. All sales must be delivered or sold at a farmers market or festival
o Harrison County requires a Conditional Use Permit to operate a home based business. You will
have to go in front of the planning commission for approval for the business license.
Neighborhood covenants may prohibit you from operating a home based business.
o Hancock County requires you to obtain a county tax license prior to obtaining a business license. If there are any complaints from area neighbors about the amount of traffic visiting your home, your license could be revoked.
o City of Ocean Springs requires a Home Occupancy License (if you do not own the home, you will need permission from the home/property owner) as well as a Privilege license to do business
within the city.
o City of Biloxi requires a Home Occupancy License (if you do not own the home, you will need permission from the home/property owner) as well as a Privilege license to do business within
the city.
o City of D’Iberville requires a Home Occupancy License (if you do not own the home, you will need permission from the home/property owner) as well as a Privilege license to do business within
the city.
o City of Gulfport requires you to submit a business application on the first Tuesday of the month to be placed on the review board docket of the following month. The notice of application will be printed in the paper to allow any nearby residents a chance to attend the review board and voice any opposition. The review board will then decide if you may operate within the city. If approved, you will then be required to obtain a Privilege license to do business within the city.
o City of Long Beach requires you to submit a business application to be placed on the review board docket of the following month. The notice of application will be printed in the paper to allow any nearby residents a chance to attend the review board and voice any opposition. The review board will then decide if you may operate within the city. If approved, you will then be required to obtain a Privilege license to do business within the city.
WILL I BE SUBJECT TO HEALTH DEPARTMENT INSPECTION?
Only if there is a report of violation or complaint is reported.
WHAT IF I VIOLATE THE ABOVE LISTED REQUIREMENTS?
You could be fined anywhere from $250.00 to over $10,000.00 depending on the violation.
