Colorado Cottage Food Law: $10,000 Cap Now, Registration and $150,000 Cap From 2027-01-01 (HB26-1033)

Colorado's cottage food law lets you sell certain home-made foods without a commercial kitchen. The rules you follow depend on the date. Through December 31, 2026, C.R.S. 25-4-1614 requires no state registration and caps net revenue at $10,000 per eligible food product per year. Starting January 1, 2027, House Bill 26-1033, signed June 4, 2026, changes the framework. Every producer registers with the Colorado Department of Public Health and Environment (CDPHE) before selling, the revenue cap rises to $150,000 per calendar year (adjusted yearly for inflation), and certain refrigerated foods become possible after a food safety course.

This article is informational content, not legal or tax advice. Cottage food rules touch health, licensing, and tax questions that depend on your products and your sales channels. Talk with CDPHE, your local public health agency, and a qualified attorney or CPA before you sell.

Which Rules Apply, and When

Read this table before you plan anything. The 2027 column describes law that is not yet in force. Do not treat it as current.

Topic	Through 2026-12-31 (current law)	From 2027-01-01 (HB26-1033, not yet in force)
Registration	None required. A voluntary registry is allowed.	Every producer registers with CDPHE before selling. The registration number goes on the label.
Revenue cap	$10,000 net revenue per eligible food product per year.	$150,000 net revenue per calendar year, adjusted yearly for inflation.
Refrigerated (TCS) foods	Not allowed. Only non-hazardous foods that need no refrigeration qualify.	Allowed after a TCS food safety course. Keep proof of the course. One type of TCS food with up to 5 variations.
Foods with meat	Not among the listed foods.	Allowed after a TCS food safety course. Check with CDPHE for the excluded food list.
Eggs	Up to 250 dozen whole eggs a month.	Check with CDPHE for how the egg allowance applies.
Who may produce	A Colorado-resident individual, or a Colorado LLC of two or fewer resident members.	Check with CDPHE. Producer eligibility may change.
Enforcement	Sampling or inspection only in response to misbranding, a complaint, or illness.	Local public health may fine and recover inspection costs. Three misbranding or TCS violations in 12 months bars TCS sales.

Materials and Information You Need Before You Start

Gather these items before you make your first sale. Most of them cost little, but missing one can stall the whole launch.

• A written recipe for each product, with a complete ingredient list in the order you will print it on the label.
• A food safety course certificate from a course comparable to one offered by CSU Extension or a public health agency. Confirm comparability with the course provider or CDPHE.
• Label stock or a printer that produces durable labels with your product name, business name and address, production date, and ingredients.
• A point-of-sale placard that carries the home-kitchen disclaimer. Confirm the exact wording with CDPHE.
• A revenue log with a separate tab for each product, so you can track net revenue against the per-product cap.
• If you form an LLC, a Colorado registered agent with a physical Colorado street address, and access to the Secretary of State online filing system.
• Your Colorado residency documentation, since the exemption is limited to Colorado residents.

Step-by-Step: Setting Up a Colorado Cottage Food Business

1. Confirm your product is on the allowed list. Current law covers non-hazardous foods that need no refrigeration: pickles, spices, teas, dehydrated produce, nuts, honey, jams, flour, and baked goods, including candies and tortillas. Foods that need refrigeration or contain meat fall outside the 2026 rules. Do not assume a product qualifies because it is a baked good. Check each recipe against the list, and check every ingredient, not just the main one.
2. Confirm you qualify as a producer. Under current law, the producer must be a Colorado-resident individual or a Colorado LLC of two or fewer resident members. If you have a co-owner, both of you must be Colorado residents to stay within the LLC limit.
3. Decide whether to form an LLC. Many home sellers operate as individuals. If you want an LLC, file Articles of Organization with the Colorado Secretary of State, Business Organizations Division. The filing fee is $50. Online filings process in real time, so the record updates after successful payment. The LLC name must include a term such as LLC, Limited Liability Company, or Ltd. Liability Company, and it must be distinguishable from existing names on the Secretary of State records. Punctuation and capitalization do not make a name distinguishable. You can reserve a name for 120 days for $25. Your registered agent must be a physical Colorado street address, never a P.O. box. An individual agent must be at least 18 and hold a current valid Colorado driver's license or state ID card. A new LLC files no periodic report in its first year. After that, the $25 Periodic Report is due every year in the entity's periodic report month, which the Secretary of State shows on your record summary. LLC income passes through to a flat 4.40 percent state income tax.
4. File a trade name if you sell under a different name. If you sell under a name other than your legal name or your LLC name, file a Statement of Trade Name with the Colorado Secretary of State. Trade names are filed statewide, not with the county. The fee is $20 to file online and $5 to renew, according to the Secretary of State trade name guidance.
5. Complete a food safety course. Choose a course comparable to one from CSU Extension or a public health agency, and keep the certificate in your records. Current law makes the course a requirement, so do not start selling until you have it.
6. Build compliant labels. Every product label must show the producer name, the business address, the production date, and the ingredients. The label must also carry the home-kitchen disclaimer. Ingredient lists should match your recipe card exactly. If you later sell under the 2027 rules, the CDPHE registration number will also go on the label.
7. Post your point-of-sale placard. The disclaimer must appear at the point of sale as well as on the label. A simple printed card at your table, stand, or checkout counter is the usual approach. Confirm the wording and placement with CDPHE or your local public health agency.
8. Track net revenue for each product. The $10,000 cap applies per eligible food product per year. A single combined total does not show whether any one product is near its limit. Keep a monthly log, and ask CDPHE or a CPA how net revenue is calculated for your business before you rely on your numbers.
9. Handle sales tax. If you collect sales tax, open an account with the Colorado Department of Revenue, Taxation Division. The state sales tax rate is 2.9 percent, plus any special district taxes. Home-rule cities, including Denver, Aurora, Colorado Springs, Boulder, and Fort Collins, collect and license their own city sales tax, so a state sales tax license does not cover them. Food for home consumption is generally exempt from state sales tax under 39-26-707. However, candy and soft drinks are treated differently, and city taxes differ too. Because candies are on the cottage food list, check with the Department of Revenue before you assume a candy product is exempt. Services are generally not subject to state sales tax, but confirm that for any class, workshop, or other service you offer.
10. Check the boundary with the retail food license and catering. The cottage food rules do not cover every food operation. Activity outside them may fall under the retail food license rules administered by CDPHE or your local public health agency. Catering also raises its own questions. Ask CDPHE before you accept catering orders or sell a product that falls outside the allowed list.
11. Check local rules. Colorado has no general state business license. Cities and counties can add their own requirements, so check with your local public health agency and your city or county office before your first sale.
12. Prepare for 2027 if you plan to keep selling. Under HB26-1033, you must register with CDPHE before selling on or after January 1, 2027. Check with CDPHE about producer eligibility and the excluded food list, since these may change. If you want to sell refrigerated (TCS) foods or foods with meat, plan for a TCS food safety course and keep proof of completion. The new framework allows one type of TCS food with up to 5 variations, and the revenue cap becomes $150,000 per calendar year. Local public health may fine you and recover inspection costs, and three misbranding or TCS violations within 12 months bars TCS sales.

Tips for Staying Organized and Compliant

• Keep one binder or folder. Store recipes, your course certificate, label proofs, your revenue log, and any tax or agency correspondence together.
• Write recipes as label drafts. If the ingredient list on your recipe card matches the label word for word, you avoid misbranding problems.
• Date every batch. The production date is a required label element, and it helps you rotate stock.
• Start with a small product line. The cap is per product, so more products can mean more total capacity. Each product still needs its own label, ingredient list, and revenue tracking, so start with two or three.
• Get answers in writing. When CDPHE, the Department of Revenue, or your city gives you guidance, ask for it in writing or save the email. Your records will matter if a question comes up later.

Common Mistakes to Avoid

• Treating 2027 rules as current. Until January 1, 2027, the 2026 framework applies. Do not register or label for a rule that is not yet in force unless CDPHE tells you to.
• Selling to resellers. Purchasers may not resell your products. Sales must go direct to the informed end consumer inside Colorado.
• Tracking revenue as one number. The $10,000 cap applies to each eligible food product. A combined total can hide a product that has gone over its limit.
• Skipping the candy and soft drink tax check. These items are treated differently from other food for home consumption, so do not assume they are exempt.
• Using a P.O. box as a registered agent address. The Secretary of State requires a physical Colorado street address where documents can be received during business hours.
• Missing the first LLC report. A new LLC files no periodic report in its first year, but the $25 Periodic Report is due every year after that. Mark the date on your calendar when you form the entity.
• Using incomplete labels. A missing ingredient list, date, or address can lead to a misbranding finding, which counts toward the violation limits that apply from 2027.

Expected Results

If you follow the 2026 rules carefully, you may find that the framework works for a small, steady home business with a limited product line, a clear labeling system, and a revenue log that shows your numbers stay under the cap. Results vary with your products, your market access, your pricing, and the time you can give the business. These rules do not promise any level of income, and a label, placard, or course certificate does not guarantee that a food will be safe or that a customer will return.

Describe your products in plain, factual terms. Health and disease claims are a common reason regulators take a closer look at home food sellers, so keep your descriptions accurate and avoid making claims you cannot support.

Where to Confirm Each Fact

• House Bill 26-1033 text and status: leg.colorado.gov/bills/hb26-1033
• Colorado Secretary of State, Business Organizations Division: coloradosos.gov/pubs/business/businessHome.html
• Business entity search: coloradosos.gov/biz/BusinessEntityCriteriaExt.do
• Online filing system: coloradosos.gov/pubs/business/fileAForm.html
• Trade name FAQ: coloradosos.gov/pubs/business/FAQs/tradeNames.html
• Entity name FAQ and name reservation: coloradosos.gov/pubs/business/FAQs/entityNames.html
• Colorado Department of Revenue, Taxation Division: tax.colorado.gov
• Sales tax license application: tax.colorado.gov/how-to-apply-for-a-colorado-sales-tax-license
• Colorado Small Business Development Center Network: sbdc.colorado.gov
• U.S. Small Business Administration, Colorado district: sba.gov/district/colorado

For CDPHE registration, the 2027 excluded food list, the exact disclaimer wording, and how net revenue is calculated, contact CDPHE directly. Confirm local licensing and any city or county requirements with your local public health agency and city or county office.

Next Steps

Start with the 2026 rules if you are launching now. Confirm your products, complete the course, build your labels, and set up your revenue log. Then, before January 1, 2027, review your plan against HB26-1033, decide whether you want to add refrigerated or meat products, and register with CDPHE if you intend to keep selling. A short call with a qualified attorney or CPA can save you from costly mistakes, especially if you plan to form an LLC, sell in more than one city, or cross into catering or retail food.