Texas Cottage Food Law: How to Comply with SB 541
With the passage of SB 541 (the Texas Food Freedom Act), starting a cottage food operation in Texas and keeping it compliant looks a little different as of September 1, 2025.
In case you missed it: this bill marked a monumental change for cottage food producers in Texas. It expanded the list of allowed foods, tripled the sales cap, and created an avenue for wholesale.
At Hotplate, we help thousands of chefs and bakers across the country build and scale their food businesses.
So if you’re in Texas, howdy! We’re here to help you understand exactly what the new Texas cottage food law means for you.
Note: while we strive to keep the information here current, head to Texas Department of State Health Services for the latest updates. If you have any questions, contact DSHS by emailing foodestablishments@dshs.texas.gov or calling 512-834-6753.
Do You Need a License?
No, but if you plan to sell foods that require refrigeration (“time and temperature control for safety,” or TCS foods), you need to register with the Texas Department of State Health Services (DSHS).
One more thing: local governments and health departments can’t require you to obtain any type of license or permit, either.
Step 1: Determine What You’re Selling
Shelf-stable foods (non-refrigerated): No registration required. You can sell directly to consumers or through a registered cottage food vendor.
Refrigerated/TCS foods (like cheesecakes, cream pies, flan, or cut fruit): Registration with DSHS is required in order to sell.
Step 2: Register with the State (for TCS Foods)
Follow the steps on DSHS’s Cottage Food Production webpage
Register - you can refer to their Guidance Document for step by step instructions.
Once you submit, you will be given your unique License Number. You can include this number on your food labels instead of your home address.
Step 3: Update Your Labels
Every cottage food product in Texas must now include:
The disclosure statement:
“THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”
Producer’s name & address. If you registered, you can use your state-issued registration ID number instead of your address.
For TCS foods:
Production date
Safe handling instructions in at least 12-point font:
“SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption.”
Step 4: Follow Storage and Delivery Rules
If you sell refrigerated foods, you’re now responsible for ensuring they remain at safe temperatures throughout storage and delivery. That may mean:
Keeping items in a refrigerator until pickup
Using insulated coolers with ice packs for delivery
Step 5: Selling through Cottage Food Vendors
SB 541 allows wholesale of shelf-stable (non-TCS) foods through registered Cottage Food Vendors. Vendors can sell directly to consumers at a farmers' market, farm stand, food service establishment, or any retail store. Vendors must prominently place a sign with this disclosure:
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”
What Existing Cottage Food Operators Need to Do
If you’re already running a cottage food operation in Texas, here’s what you need to know:
Review your product list. If you want to expand into refrigerated foods, register with the DSHS.
Update your labels. Add the new disclosure language, and, if you register, you can use your state-issued ID number if you’d like to remove your home address.
Decide your sales channels. If you want to wholesale, start identifying registered cottage food vendors to partner with.
Get your systems ready. For refrigerated foods, invest in storage/delivery solutions that keep products safe.
Watch for DSHS updates. Direct any questions to foodestablishments@dshs.texas.gov or 512-834-6753.
TLDR
SB 541 simplifies the process for most home-based food businesses in Texas, while introducing a few new steps for those selling foods that need to be refrigerated.
No license needed for shelf-stable foods.
Registration required if you sell refrigerated/TCS foods.
Updated labeling and safe handling rules now apply to everyone.
For Texas food entrepreneurs, this is both a huge opportunity and an important responsibility. It’s a great time to take advantage of the expanded law and see how it can fuel your business.
