Do You Need a Permit?
Yes — Registration Is Required
Delaware requires home food sellers to register as a Cottage Food Establishment (CFE) with the Division of Public Health and obtain a separate state business license from the Division of Revenue before selling any products. You must also complete an approved food safety training course and pass a kitchen inspection.
Delaware has one of the most thorough registration processes of any state for cottage food sellers. While this requires more upfront work than many neighboring states, the benefit is clear legal authorization to sell — and the removal of the annual sales cap in December 2023 means there's no limit on how much you can earn once you're registered.
Permits & Registrations at a Glance
| Permit / License | Issuing Agency | Cost | Renewal | Link |
|---|---|---|---|---|
| Cottage Food Establishment (CFE) Registration | Division of Public Health, Office of Food Protection | $30/year | Annual — fiscal year April 1 to March 31 | CFE Program → |
| Food Safety Training Course | State-approved providers (ServSafe, FoodSafePal, etc.) | ~$175 (varies by provider) | One-time — required before registration | Contact (302) 744-4546 for approved providers |
| State Business License | Delaware Division of Revenue | $75/year first location | Annual — expires December 31 (3-year option available) | One Stop Portal → |
| EIN (Federal Tax ID) | Internal Revenue Service (IRS) | Free | One-time — no renewal | IRS EIN Application → |
| Local Business License (if required) | City or county government | Varies by municipality | Varies | Contact your local government office |
Delaware has no state or local sales tax, so you do not need a seller's permit or sales tax license. However, as a business operating in Delaware, you are subject to the Gross Receipts Tax (GRT) — a tax on your total business revenue paid by you (not charged to customers). Most cottage food sellers will fall within the first $80,000/month exemption threshold and owe minimal GRT. Contact the Division of Revenue at (302) 577-8780 for details.
Step-by-Step: How to Get Licensed
Complete Food Safety Training
Enroll in and complete a state-approved food safety training course. Delaware requires an 8-hour program covering food processing, packaging, and safety principles. ANAB-accredited courses like ServSafe and FoodSafePal are accepted. Cost is approximately $175. Keep your certificate — you'll need to submit proof of completion with your registration application.
Prepare Your Documentation
Before submitting your application, prepare the following materials:
A complete list of every product you plan to sell, with a full ingredient list for each product. Sample labels for each product meeting all Delaware labeling requirements. A floor plan of your kitchen/processing area showing all appliances, food contact surfaces, refrigeration, dry good storage, and restroom facilities. A written contingency plan describing how you would initiate a product recall if needed.
Submit Your CFE Registration Application
Submit your completed application along with all required documentation and the $30 registration fee to the Division of Public Health, Office of Food Protection. Contact the office at (302) 744-4546 or visit dhss.delaware.gov/dph/hsp/ofpcfe to obtain the application form. Your product list, ingredients, labels, and floor plans will all be reviewed as part of the approval process.
Pass Your Kitchen Inspection
The Division of Public Health will schedule one or more pre-operational inspections of your home kitchen. The inspector will verify that your kitchen is constructed and equipped as described in your application, that your standard operating procedures are in place, and that you're in substantial compliance with the cottage food regulations. If your home uses a private well, you'll need water testing results within 60 days. Private septic systems require verification from DNREC.
Obtain Your State Business License
Register for a Delaware business license through the One Stop Business Licensing and Registration portal at onestop.delaware.gov. The fee is $75/year. This is a separate requirement from your cottage food registration — you need both. You can apply online and print a temporary license immediately while your permanent license is processed (about one month).
Get Your EIN (Recommended)
Apply for a free Employer Identification Number from the IRS at irs.gov. While sole proprietors without employees can use their SSN, an EIN is recommended for opening a business bank account and keeping your personal and business finances separate. The online application takes minutes and your EIN is issued immediately.
Start Selling
Once your CFE registration is approved and your business license is active, you're authorized to sell your registered products directly to consumers within Delaware. Display your registration certificate at every venue where you sell. Remember: all sales must be in-person, within Delaware, and direct-to-consumer only.
Inspection Requirements
Delaware is one of the few states that requires a kitchen inspection for cottage food sellers. Here's what to expect:
Pre-Operational Inspection
Before you begin selling, the Division of Public Health will inspect your kitchen to verify it matches your floor plan, has proper equipment and surfaces, and meets basic food safety standards. This is a one-time requirement (unless you move or renovate).
Complaint-Based Inspections
Additional inspections may occur in response to consumer complaints, reports of foodborne illness, or other situations deemed necessary by the Division. Maintaining clean, organized operations is your best protection.
Keep your kitchen spotless before inspection. Ensure your floor plan is accurate and up-to-date. Have your food safety certificate, recall plan, and product documentation readily accessible. Remove pets from the processing area. Make sure your handwashing and dishwashing stations are set up and functional. If the inspector identifies deficiencies, you'll receive a list of items to correct before your registration can be approved.
County & Local Requirements
In addition to state-level registration and licensing, your city or county may impose additional requirements:
- Zoning: Home-based businesses must comply with local zoning ordinances. Some residential areas may restrict commercial activity from a home. Contact your local planning and zoning office before starting.
- Home occupation permits: Some municipalities require a separate home occupation permit for businesses operated from a residence.
- Local business licenses: Certain cities and towns in Delaware may require a municipal business license in addition to the state license.
Check with your local government in New Castle County, Kent County, or Sussex County for specific requirements in your area.
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