South Dakota's Cottage Food Law

South Dakota allows individuals to produce and sell homemade food products directly to consumers under its cottage food provisions. If you operate out of your home kitchen and keep your annual sales below the state threshold, you don't need a commercial kitchen or food processing license. Covered products are generally non-potentially-hazardous foods, meaning items that don't require refrigeration to stay safe, including baked goods, jams, and candies.

You can sell your cottage food products at farmers markets, roadside stands, fairs, and through direct sales to the end consumer. Online orders are permitted, which means you can take orders through a website or social media. Shipping is not allowed, so all transactions must result in in-person pickup or local delivery directly to the buyer. You cannot sell through retail stores or third-party storefronts.

Your annual gross sales are capped at $65,000, which is one of the higher limits in the country and gives your business real room to grow. No permit, license, or state registration is required before you start selling. South Dakota's relatively high revenue cap and lack of permit requirements make it a straightforward state to operate in. If you're ready to start, you can begin selling as soon as your products and labels are ready.