Colorado is one of the most welcoming states for cottage food sellers — no state permit, no license, no inspection. Here's everything you actually need.
Under the Colorado Cottage Foods Act (C.R.S. § 25-4-1614), no state license, permit, registration, or home kitchen inspection is required to produce and sell cottage food. The only mandatory requirement is completing an approved food safety training course before you start selling.
That said, "no state permit" doesn't mean zero paperwork. Depending on where you live and how you sell, you may need a local business license, a sales tax account, and possibly a home occupation permit. Here's the complete picture of what applies — and what doesn't — for cottage food sellers in Colorado.
| Requirement | Issuing Agency | Cost | Renewal | Details |
|---|---|---|---|---|
|
Food Safety Training
Required before selling
|
CSU Extension, StateFoodSafety, FoodSafePal, or local health dept | $10–$50 | Every 3 years (CSU); varies by provider | Complete one of three approved options. Display certificate at point of sale. CSU Extension offices → |
|
State Cottage Food Permit
Not required
|
N/A | $0 | N/A | Colorado does not require a state permit, license, or registration for cottage food operations. |
|
Home Kitchen Inspection
Not required
|
N/A | $0 | N/A | No routine inspections. However, if a complaint is filed, state or local health officials may inspect for compliance. |
|
Sales Tax License
May be required
|
Colorado Department of Revenue | $4–$18 | Every 2 years ($16) | Food for home consumption is exempt from state sales tax. Local taxes may apply — check the DR 1002 publication for your jurisdiction. Register at mybiz.colorado.gov → |
|
Local Business License
Varies by city/county
|
Your city or county clerk's office | Varies | Varies (typically annual) | Not all jurisdictions require one. Contact your local city/county offices to confirm. Denver requires a home occupation permit for cottage food sales. |
|
Home Occupation Permit
Varies by city/county
|
Your local zoning/planning dept | Varies | Varies | Some cities require this for any home-based business. Denver's cottage food home occupation permit is specifically designed for this use case. |
|
Special Event Tax License
If selling at events/fairs
|
Colorado Department of Revenue | Varies | Per event | Use form DR 0589 (application) and DR 0098 (return) if you only sell at occasional events rather than maintaining a standard sales tax license. |
|
EIN (Federal Tax ID)
Recommended
|
IRS | Free | None (permanent) | Required for LLCs and employers. Recommended for all businesses for banking and tax purposes. Apply online → |
Follow these steps in order and you'll be ready to sell legally under Colorado's Cottage Foods Act:
Choose one of three approved options: CSU Extension's in-person course (~$50, 3.5 hours), an online Food Handlers Card from StateFoodSafety.com or FoodSafePal (~$10–$15, ~90 minutes), or a food safety course from your local public health agency. You must complete training before you start selling.
Make sure your product is non-potentially hazardous (doesn't require refrigeration). If you're making pickled products, arrange for free pH testing through CDPHE. Contact them at (303) 692-3645, option #2 if you're unsure about a specific item.
Contact your city and county offices to ask about local business licenses and home occupation permits. Requirements vary — some jurisdictions require them, others don't. Denver, for example, requires a specific home occupation permit for cottage food sales.
Colorado exempts food for home consumption from state sales tax, but your city or county may impose local taxes. Check the DR 1002 publication at tax.colorado.gov, then register at mybiz.colorado.gov if needed. For occasional events, use the Special Event forms (DR 0589 / DR 0098) instead.
Every product must be packaged and labeled with your name, address, phone/email, preparation date, ingredients, and the required Colorado cottage food disclaimer. See our Label Requirements guide for the exact wording and format.
Create a placard, sign, or card displaying: "This product was produced in a home kitchen that is not subject to state licensure or inspection. This product is not intended for resale." Display it at every point of sale — farmers markets, events, your home, or online.
That's it — there's no application to submit, no approval to wait for, and no inspection to schedule. Once you've completed training and set up your labeling, you're legal. Start selling at farmers markets, online, through direct delivery, or at community events anywhere in Colorado.
Colorado cottage food operations are not subject to routine inspections. No state or local government agency will schedule an inspection of your home kitchen as part of the cottage food process. However, if a customer or community member files a complaint about your operation, a state or local public health employee has the authority to enter your cottage food operation and conduct an inspection to determine compliance with the Act.
What happens during a complaint inspection: The inspector will verify that you're producing only foods allowed under the Act, that your products are properly labeled, and that you're following basic food safety practices. If you're found to be producing foods outside the Act's scope, the state or local health agency can embargo or condemn the product and may use enforcement provisions under the Food Protection Act (C.R.S. § 25-4-1610).
The best protection is compliance: stick to approved products, label everything correctly, complete your training, and keep your kitchen clean. If you're operating within the rules, a complaint inspection is nothing to worry about.
Colorado's cottage food rules are set at the state level, but local jurisdictions can layer additional requirements on top. This is the one area where "no permit needed" gets a little more complicated. Here's what to check:
Denver: The City and County of Denver requires a Fresh Produce and Cottage Food Sales Home Occupation Permit for cottage food operations conducted on residentially-zoned land. This is available to any owner or renter who lives in Denver. Contact Denver Development Services at 311 or visit denvergov.org for details.
Beyond Denver, many Colorado cities and counties have their own business license requirements that apply to any home-based business — not just food. Before you start selling, call your local city clerk or county clerk office and ask two questions: (1) Do I need a local business license for a home-based food business? (2) Do I need a home occupation permit or zoning approval?
For sales tax, remember that home-rule jurisdictions in Colorado may have their own sales tax systems separate from the state. The DR 1002 publication from the Colorado Department of Revenue lists tax rates and contact information for each jurisdiction, including home-rule cities that require separate registration.
Phone: (303) 692-3645, option #2
Email: cdphe_mfgfd@state.co.us
Address: 4300 Cherry Creek Dr S, Denver, CO 80246
Cottage Foods page →Phone: (303) 238-7378
Hours: Mon–Fri, 8:00 a.m. – 4:30 p.m.
Portal: mybiz.colorado.gov
Register your business →Phone: (303) 894-2200
Hours: Mon–Fri, 8:00 a.m. – 5:00 p.m. MT
Portal: sos.state.co.us
File business documents →Phone: (800) 829-4933
EIN Application: Free, immediate online
Hours: Mon–Fri, 7 a.m. – 7 p.m. local time
Apply for EIN →Upload your permits and training certificates, track renewal dates, and get reminders before anything expires.
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