From Zero to First Sale — 8 Steps
Complete these in order. The regulatory steps (1–4) must be done before you sell anything. The business setup steps (5–8) can overlap — but don't skip them.
⚖️ Step 1–4 — Regulatory Foundation
- Confirm all your products are on Nevada's approved cottage food list (What You Can Sell →)
- Identify your health district and complete your cottage food registration (Permits guide →)
- Receive your health district approval letter — do not sell until this arrives
- Get your Sales & Use Tax Permit from the Nevada Dept. of Taxation ($15 one-time at tax.nv.gov)
🚀 Step 5–8 — Business Setup
- Decide on sole proprietor or LLC — file DBA or Articles of Organization if forming an LLC
- Apply for a free federal EIN at irs.gov (instant, free — protects your SSN)
- Open a dedicated business bank account (keeps personal and business finances separate)
- Create compliant labels for every product — use the SellFood Label Maker to generate Nevada-compliant labels
💰 Step 6 — Pricing & Revenue Tracking
- Calculate your cost per unit (ingredients + packaging + time) for each product
- Set retail prices using the 3–4x cost-of-goods rule as a starting baseline
- Set up a simple revenue tracking spreadsheet or accounting app to monitor your $35,000 annual cap
- Identify your target markets and events where you plan to sell this season
📣 Step 7–8 — Market & Sell
- Apply to your first farmers market or craft fair — most have seasonal applications with deadlines
- Set up your SellFood storefront to build your online presence and take pre-orders for pick-up
- Create social media profiles for your business (Instagram and Facebook are highest-value for food sellers)
- Photograph your products in good natural light — product photos are the single biggest factor in online sales
Sole Proprietor vs. LLC in Nevada
For most home food sellers starting out, a sole proprietorship is the simplest and lowest-cost path. Nevada's LLC formation costs are higher than most states ($425 to start + $350/year), so the LLC makes more sense once your business is generating consistent income and you want formal liability protection. Here's an honest comparison.
Managing Money as a Nevada Cottage Food Seller
🧾 Federal Self-Employment Tax
As a sole proprietor or single-member LLC, your cottage food income is self-employment income. The IRS applies a 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on your net profit — revenue minus business expenses. Pay estimated taxes quarterly if you expect to owe more than $1,000 in federal tax for the year. Use IRS Form 1040-ES to calculate and pay estimated taxes.
You can deduct legitimate business expenses — ingredients, packaging, market booth fees, mileage to markets, label printing, and a portion of your home internet — to reduce your taxable net profit. Keep every receipt.
💳 Sales Tax in Nevada
Nevada's base sales tax rate is 6.85%, with local additions bringing most counties to 7.1%–8.375%. Whether cottage food sales are subject to sales tax depends on the product and how it's sold — packaged foods for home consumption are generally sales-tax exempt in Nevada, but the specific treatment of cottage food sales is a ⚑ VERIFY item. Register for your Sales & Use Tax Permit at tax.nv.gov ($15 one-time), then confirm your product's tax status directly with the Nevada Department of Taxation before your first sale.
🏦 Business Banking
Open a dedicated business checking account as soon as you make your first sale. This is not legally required for sole proprietors, but it is essential for clean record-keeping, tax preparation, and presenting a professional image. Many banks offer free business checking for small accounts. Bring your EIN, DBA registration (if applicable), and your cottage food registration approval letter when opening the account. Never run personal expenses through your business account — the IRS looks for commingling of funds as a sign of a hobby rather than a real business.
📚 Record-Keeping
Keep records of every sale, every expense, and your running annual revenue total. The $35,000 annual cap is your responsibility to track — Nevada health districts do not audit your sales figures, but you are legally required to stay under the limit. A simple spreadsheet with date, product, quantity, and revenue is sufficient. Save supplier invoices for ingredients (they're tax deductions). Keep all records for at least 3 years — 7 years if you're ever audited.
How to Price Your Home-Made Food
Cottage food sellers consistently underprice their products. Buyers at farmers markets and artisan food events expect to pay premium prices for handcrafted, small-batch food — and they're willing to. Your job is to price confidently and communicate the value of what you make. Start with cost and work up from there.
The Baseline Pricing Formula
🔍 Research Comparable Products
Before setting prices, visit two or three Nevada farmers markets as a buyer. Look at what similar products sell for. A jar of artisan jam in the Las Vegas or Reno market typically sells for $8–$14. Cookies go for $3–$5 each or $10–$18 per dozen. Use the market, not your gut, to calibrate.
💬 Tell Your Story
Buyers at artisan markets pay for the story as much as the food. "Made in small batches in my Henderson kitchen using local honey" is a value statement. Display a simple card at your booth that explains your process, your inspiration, and what makes your products worth the premium price.
📦 Bundle for Average Order Value
Offer gift sets and bundles — three jars for $30, a cookie sampler for $18, a spice collection for $25. Bundles increase average transaction size without requiring you to lower your per-unit price. They also make great gift items that move well at holiday markets.
🚀 Start Higher, Adjust Down if Needed
It's always easier to offer a one-time promotional discount than to raise prices after buyers have anchored to a lower number. Launch at the high end of your research range. If products don't move, adjust — but don't start low and try to raise later.
Where to Sell in Nevada
Nevada's current cottage food rules limit you to in-person sales only. Here are the six primary channels available to you now — and what changes in July 2027 when AB 352 takes effect.
Farmers Markets
Nevada has farmers markets in Las Vegas, Henderson, Reno, Sparks, Carson City, and many smaller towns. Most require an application, annual booth fee, and proof of cottage food registration. Apply early — popular markets fill up fast, especially for the fall/holiday season.
Currently AllowedCraft Fairs & Artisan Markets
Craft fairs, church bazaars, holiday markets, and community swap meets are all explicitly permitted under NRS § 446.866. Nevada hosts hundreds of these events annually — event coordinator approval is required at most venues but health district pre-approval is not needed for each individual event once you're registered.
Currently AllowedHome Sales
You can sell directly from your private property — buyers coming to you at your home. This works well for made-to-order products and repeat customers who prefer direct pickup. Some neighborhood HOAs may have rules about commercial activity — check yours before advertising home sales.
Currently AllowedSocial Media (Promotion Only)
Instagram, Facebook, and TikTok are powerful tools for building an audience and directing buyers to your in-person sales locations. You can advertise, post photos, and share your story — but you cannot accept orders or payment through social media under current Nevada rules.
Allowed for PromotionOnline Sales
Online sales are explicitly prohibited under current Nevada cottage food rules (NRS § 446.866). Your website and social media can inform, educate, and direct buyers to your in-person locations — but no checkout, no payment links, no "buy now" buttons until July 2027.
Prohibited Until 2027Online Orders + Delivery
Taking orders by phone or online with mail or delivery fulfillment is prohibited under current law. AB 352 (effective July 2027) will fully legalize online orders, mail delivery, and third-party delivery. Use this time to build your brand, audience, and product line so you're ready to launch online the moment the law takes effect.
Allowed July 2027 (AB 352)Business Setup Checklist
Track every step of your Nevada cottage food business launch — from registration to first sale — with an interactive checklist you can check off as you go.
Create Free Account to Use This Tool →