Notice · INFO
HB 398: NO Sales Limit
Georgia's 2025 cottage food law has NO revenue cap. Grow as large as you want without hitting ceiling.
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.
Startup cost range — full setup
Bakery · GA
$2,000
–
$100,000
$1K
$10K
$100K
$1M
- Difficulty
- Easy to Medium
- Profit margin
- 15-30%
Overview
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.
Heads-up
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Important Notices
Notice · INFO
Wholesale Allowed
Georgia cottage food can sell wholesale to stores, restaurants, coffee shops. Unusual and valuable.
Notice · INFO
Interstate Sales Allowed
Georgia is one of few states allowing cottage food interstate shipping. Expand beyond Georgia.
Notice · INFO
No License or Inspection
HB 398 removed license requirement and no home inspection needed. Just food safety course.
Cost breakdown
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Startup Costs
| Item | Low | High | Magnitude |
|---|---|---|---|
| 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 | |
| Startup range | $2,000 | $100,000 |
The line items above are the main cost drivers, not an exhaustive sum. Several are alternatives rather than additions — a mobile setup or a storefront, a rented kitchen or a build-out — so they are not added together. The startup range is the figure used across this page.
Related guide
Complete Bakery startup guide
National costs, equipment lists, pricing strategy, step-by-step instructions.
Read
What's required
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Licenses & Food Safety Requirements
-
Food Safety Course
$10-50Required for cottage food under HB 398
-
GA LLC Formation
$100Georgia Secretary of State
-
Liability Insurance
$300-800/yearRecommended, some wholesale buyers require
-
County Health Permit
$200-500Only for retail/commercial—NOT cottage food
Markets
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Major Markets in Georgia
| # | City | Note |
|---|---|---|
| 01 | Atlanta Largest market. Diverse population. Farmers markets, wholesale opportunities abundant. | Largest market. Diverse population. Farmers markets, wholesale opportunities abundant. |
| 02 | Savannah Tourist market. Pralines, Southern treats popular. Gift shops want local products. | Tourist market. Pralines, Southern treats popular. Gift shops want local products. |
| 03 | Athens College town. Student market. Farmers markets active. | College town. Student market. Farmers markets active. |
| 04 | Augusta Smaller market. Masters Tournament creates seasonal surge. | Smaller market. Masters Tournament creates seasonal surge. |
| 05 | Alpharetta/North Atlanta Affluent suburbs. Custom cakes, premium baked goods market. | Affluent suburbs. Custom cakes, premium baked goods market. |
| 06 | Marietta Historic square has local shops wanting baked goods. Good wholesale opportunities. | Historic square has local shops wanting baked goods. Good wholesale opportunities. |
Cross-state
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Bakery Costs in Other States
Operator notes
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Georgia Bakery Tips
Tip · 01
Wholesale Is Your Advantage
Georgia uniquely allows cottage food wholesale. One coffee shop account equals dozens of farmers market sales. Pursue wholesale aggressively.
Tip · 02
Interstate Shipping
Ship to customers in FL, SC, TN, AL. Georgia's interstate allowance is rare. Market beyond state borders.
Tip · 03
Savannah Tourism
Savannah tourists want Southern treats. Pralines, pecan products, Southern-themed items. Gift shops seek local products.
Tip · 04
No Limit Means Scale
Unlike most states' $50K-$250K limits, Georgia has no cap. Build as large as you want under cottage food.
Process
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Steps to Start
-
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.
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Register Your LLC
Georgia LLC costs $100. Provides liability protection and professionalism.
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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.
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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.
Common questions
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Georgia Bakery FAQ
Q.01 Can I sell baked goods from home in Georgia?
Yes—Georgia's HB 398 (2025) allows home baking with NO sales limit, wholesale to stores, and interstate shipping. Just need food safety course. Profit margins typically run 15-30% for bakery businesses in Georgia.
Q.02 What's the sales limit for Georgia cottage food?
NO LIMIT. Georgia's HB 398 removed all sales caps. Grow as large as you want. Georgia bakery businesses generate $20,000-$300,000 in annual revenue. Profit margins typically run 15-30% for bakery businesses in Georgia.
Q.03 Can I sell wholesale in Georgia?
Yes—Georgia uniquely allows cottage food wholesale to stores, restaurants, coffee shops. Major advantage. Profit margins typically run 15-30% for bakery businesses in Georgia.
Q.04 Do I need a license or inspection?
No license required. No home inspection. Just take a basic food safety course. LLC registration in Georgia costs $100. Most entrepreneurs complete all registrations within 1-4 weeks.
Q.05 Can I ship out of state?
Yes—Georgia allows cottage food interstate shipping. One of few states with this allowance. Expand beyond Georgia. Profit margins typically run 15-30% for bakery businesses in Georgia.
Q.06 What products can I sell?
Non-potentially hazardous foods: baked goods, breads, cookies, cakes, candies, jams, jellies, granola, and more. No refrigerated items. Profit margins typically run 15-30% for bakery businesses in Georgia.
Related
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