Start a Bakery Business in Georgia
Georgia's 2025 HB 398 created one of America's best cottage food laws—NO sales limit, wholesale allowed, interstate sales permitted.
Georgia now has one of the best cottage food laws in America. House Bill 398 (effective July 2025) removed the state license requirement, eliminated sales limits, and allows wholesale to stores/restaurants plus interstate shipping. No home inspection required—just take a food safety course. This is exceptional for home bakers. For those wanting retail storefronts, Georgia has reasonable commercial requirements. Atlanta's diverse population and Savannah's tourism create strong demand across all bakery models.
Important Notices
HB 398: NO Sales Limit
Georgia's 2025 cottage food law has NO revenue cap. Grow as large as you want without hitting ceiling.
Wholesale Allowed
Georgia cottage food can sell wholesale to stores, restaurants, coffee shops. Unusual and valuable.
Interstate Sales Allowed
Georgia is one of few states allowing cottage food interstate shipping. Expand beyond Georgia.
No License or Inspection
HB 398 removed license requirement and no home inspection needed. Just food safety course.
Important Notices
| Item | Low | High |
|---|---|---|
| Home Bakery Startup (Cottage Food) Minimal requirements under HB 398 | $500 | $2,000 |
| Food Safety Course Required for cottage food | $10 | $50 |
| Commercial Kitchen Rental Monthly if needed for volume | $400 | $1,200 |
| Retail Buildout For storefront location | $25,000 | $80,000 |
| Equipment (Home) Stand mixer, pans, tools | $500 | $3,000 |
| Equipment (Commercial) Commercial mixers, ovens | $5,000 | $25,000 |
| Initial Inventory Flour, sugar, butter | $200 | $1,000 |
| Packaging & Labels Required labeling | $100 | $500 |
| GA LLC Filing Georgia Secretary of State | $100 | $100 |
| Liability Insurance Recommended | $300 | $800 |
| Total | $32,110 | $113,650 |
Licenses & Food Safety Requirements
Food Safety Course
Required for cottage food under HB 398
Same day
GA LLC Formation
Georgia Secretary of State
1-2 weeks
Liability Insurance
Recommended, some wholesale buyers require
Same day
County Health Permit
Only for retail/commercial—NOT cottage food
2-4 weeks
Licenses & Food Safety Requirements
Atlanta
500K city / 6M metroLargest market. Diverse population. Farmers markets, wholesale opportunities abundant.
Savannah
150KTourist market. Pralines, Southern treats popular. Gift shops want local products.
Athens
130KCollege town. Student market. Farmers markets active.
Augusta
200KSmaller market. Masters Tournament creates seasonal surge.
Alpharetta/North Atlanta
200K areaAffluent suburbs. Custom cakes, premium baked goods market.
Marietta
60KHistoric square has local shops wanting baked goods. Good wholesale opportunities.
Bakery Costs in Other States
View all 50 statesGeorgia Bakery Tips
Wholesale Is Your Advantage
Georgia uniquely allows cottage food wholesale. One coffee shop account equals dozens of farmers market sales. Pursue wholesale aggressively.
Interstate Shipping
Ship to customers in FL, SC, TN, AL. Georgia's interstate allowance is rare. Market beyond state borders.
Savannah Tourism
Savannah tourists want Southern treats. Pralines, pecan products, Southern-themed items. Gift shops seek local products.
No Limit Means Scale
Unlike most states' $50K-$250K limits, Georgia has no cap. Build as large as you want under cottage food.
Georgia Bakery Tips
Understand HB 398
Georgia's 2025 cottage food law is exceptional—no sales limit, no license, wholesale allowed, interstate shipping allowed. Just need food safety course.
Take Food Safety Course
Required under HB 398. Basic food handler course available online. Quick and affordable.
Register Your LLC
Georgia LLC costs $100. Provides liability protection and professionalism.
Create Required Labels
Labels must include: name, address, ingredients, allergens, and statement that product made in home kitchen.
Set Up Sales Channels
Cottage food allows: direct sales, farmers markets, online, wholesale to stores, interstate shipping. All venues open.
Get Insurance
Recommended for protection. Some wholesale buyers require proof of insurance.
Build Wholesale Relationships
Georgia uniquely allows cottage food wholesale. Approach coffee shops, restaurants, grocery stores.
Consider Interstate Sales
Georgia allows cottage food interstate shipping—rare and valuable. Expand beyond state borders.