Start a Bakery Business in Michigan
Michigan's 2025 cottage food expansion doubled revenue cap to $50K, added online sales, and made home baking more accessible.
Michigan offers good home bakery opportunities with its 2025 cottage food law expansion (HB 4122). Revenue cap doubled to $50,000 ($75,000 for items over $250), online sales and shipping now allowed, and third-party delivery permitted. No registration required—just follow labeling rules. MDARD oversees the program. For commercial bakeries, standard health department licensing applies. Detroit and Grand Rapids provide strong markets. LLC costs only $50.
Important Notices
$50,000 Revenue Cap
Michigan cottage food cap is $50,000 annually ($75,000 for items over $250/unit). Track sales carefully.
2025 Expansion: Online Sales Now Allowed
HB 4122 added online sales, shipping, and third-party delivery. Major expansion of sales channels.
No Registration Required
Michigan cottage food requires no state registration or fees. Just follow labeling requirements.
Disclaimer Required
Labels must include: 'Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture and Rural Development.'
Important Notices
| Item | Low | High |
|---|---|---|
| Home Bakery Startup (Cottage Food) No registration fee required | $500 | $2,000 |
| Commercial Kitchen Rental Monthly if exceeding cottage food | $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 |
| MI LLC Filing Michigan LARA | $50 | $50 |
| Liability Insurance Recommended | $300 | $800 |
| Total | $32,050 | $113,550 |
Licenses & Food Safety Requirements
MI LLC Formation
Michigan LARA
3-7 days
Cottage Food Labeling
Must include required disclaimer
Same day
Liability Insurance
Recommended for protection
Same day
Annual Report
Due February 15
N/A
Licenses & Food Safety Requirements
Detroit Metro
4.3MLargest market. Eastern Market, farmers markets. Strong demand for quality baked goods.
Grand Rapids
1M metroGrowing foodie culture. Farmers markets active. Good cottage food market.
Ann Arbor
120KUniversity town. Farmers market strong. Health-conscious consumers.
Traverse City
15K / 150K countyTourist destination. Cherry Festival. Summer market peak.
Lansing
115KState capital. Steady market. MSU nearby.
Northern Michigan
VariousSummer tourists, vacation rentals. Seasonal opportunity.
Bakery Costs in Other States
View all 50 statesMichigan Bakery Tips
Online Sales Opportunity
2025 expansion allows online sales and shipping. Reach customers beyond local farmers markets. Major growth opportunity.
MSU Product Center Privacy
Register with MSU Product Center to use their address on labels instead of your home address. Privacy benefit for online sales.
Eastern Market Detroit
Eastern Market is iconic Detroit destination. Farmers market Saturdays draw crowds. Great cottage food venue.
Inflation Adjustment Coming
2025 law includes annual CPI adjustment starting October 2026. Revenue cap will increase with inflation.
Michigan Bakery Tips
Understand 2025 Cottage Food Expansion
HB 4122 doubled cap to $50K, allowed online sales and shipping, permitted third-party delivery. Much more flexible now.
Choose Your Products
Allowed: baked goods, breads, cookies, cakes, candies, jams/jellies, dry mixes. Not allowed: items requiring refrigeration.
Register Your MI LLC
Michigan LLC costs only $50. Annual $25 report due February 15. No cottage food registration required.
Create Required Labels
Must include: name, address (or MSU Product Center registration for privacy), ingredients, allergens, disclaimer.
Set Up Sales Channels
Direct sales, farmers markets, online sales (NEW 2025), shipping (NEW 2025), third-party delivery (NEW 2025).
Get Insurance
Recommended for protection. Not required but smart business practice.
Track Sales
Stay under $50,000 annual cap ($75,000 for items over $250/unit). Keep detailed records.
Consider MSU Product Center
Optional registration allows using their address instead of home address on labels—privacy benefit.