August 31, 2026 | Read time: 7 min

If you are a passionate baker, turning your delicious creations into a business venture is a dream come true. However, before you embark on your journey of selling home-baked goods in Arizona, it’s crucial to understand the legal steps and requirements involved.

heart shaped cookies decorated for valentines day and valentines day

I decided to start offering cookie decorating classes through my mobile craft studio in Scottsdale Arizona. I researched what legal steps I needed to take in order to bake cookies at my home, so that they can be used for decorating classes.

Having done all the research, I thought I would pass along what I learned so that others looking to sell their home-baked goods in Arizona, would have a quick and easy resource.

While l will outline the necessary processes to ensure your baking business complies with Arizona’s regulations, please note, this should not be construed as legal advice. Throughout the post, I am providing links to relevant regulations on the Arizona Dept. of Health website. Use these links to see the most up to date information, as some requirements may have changed since I have written this post.

Step 1: Familiarize Yourself with Arizona Cottage Food Laws

In Arizona, the sale of home-baked goods falls under the Cottage Food Laws. This allows individuals to prepare and sell many foods from their home kitchen, including traditional shelf-stable baked goods and, under certain requirements, some refrigerated (TCS) foods, after obtaining the proper licenses/certificates (see step 3). These laws are designed to support small-scale food entrepreneurs while maintaining public health and safety standards.

Step 2: Determine Eligibility of your Home-Baked Goods

In Arizona, items generally approved:	Items NOT APPROVED are:
Baked goods (breads, cookies, cakes, pies, etc.)	Alcoholic Beverages
Jams, jellies & spreads	Raw milk or products made with raw milk
Dry goods (granola, spices, baking mixes, etc.)	Fish and shellfish
Candy & chocolates	Marijuana-infused products
Savory prepared foods (meals, jerky, fermented, salsa, etc.)	Supplements
Snack foods (popcorn, trail mix, chips, etc.)	Pet treats/feed (regulated by AZ Dept. of Agriculture)
Beverages & drink mixes

Before proceeding, confirm that your baked goods qualify as cottage food products (View the official ADHS list).

Frosting and Icing

Update (2026): Arizona still distinguishes between shelf-stable frostings and icings and those requiring refrigeration (a TCS food).

What is a TCS food?
TCS stands for Time/Temperature Control for Safety. These foods require refrigeration (41°F or below) or hot holding (135°F or above) to prevent the growth of harmful bacteria. An easy way to think about it is this: if a food must be refrigerated to remain safe to eat, it is usually considered a TCS food.

When I first started offering cookie decorating classes in 2023, frostings made with ingredients like egg whites and meringue powder weren’t permitted under Arizona’s Cottage Food Program. So I found an alternative recipe, which some people refer to as Eggless Royal Icing. If you’re interested in the recipe, you can check it out in my Eggless Royal Icing Recipe post.

Since the 2024 update, frostings made with ingredients such as egg whites, meringue powder, butter, and cream may now be sold under the Arizona Cottage Food Program. However, because these ingredients create a TCS food, they must be kept under proper temperature control.

One thing that I found very confusing on their website was this page: Frosting Alternatives. After reading it I wasn’t sure what type of frosting/icing was allowed. So I contacted the Arizona Department of Health Services and asked. This was their response:

“If the new recipe you will use contain perishable items, you will need to keep the icing refrigerated at cold temperature (41F or below) for example, before adding it to the baked good, after it’s placed on the baked good, and the baked good itself must then be refrigerated during storage and transportation of the food product (if you will be making deliveries of the baked goods). For the icing to be considered shelf-stable, you would need to test the icing and send us proof that is shelf-stable for us to consider the product non-perishable. Otherwise, temperature control must be used.”

So, the Frosting Alternatives page is simply offering recommendations for ingredients you can substitute if you want to create a shelf-stable frosting. If your frosting contains perishable ingredients instead, it may still be allowed—it just needs to be handled as a TCS food and kept under proper temperature control.

Step 3: Obtain Required Certificates and Licenses

While Arizona’s Cottage Food Laws make it easier to start a home-based baking business, there are still some certificates and licenses you’ll need to acquire. The most important ones include:

Food Handler Certificate/Card

Man wearing a chefs hat, gloves and apron, working in a kitchen

As the business owner, you must obtain a Food Handler’s Card by successfully completing an accredited food handler training course. The course ensures you understand basic food safety practices and regulations.

You can take the food handler training course online. After taking the course, there’s an online exam. You need a 70% or higher to pass and you have 2 chances to pass. While I didn’t think to time myself, I want to say the course and exam took me around 3 hours. The fee was $7 and my Food Handler Card is good for 3 years. Right before my 3 year expiration date, I will need to retake the training course and exam to maintain my certification.

Arizona Cottage Food Registration

To obtain your Arizona Cottage Food Registration, you must first create a MyHealthDepartment account. Once you have created your account, you can then access the Cottage Food Registration form. You’ll need to attach your Food Handler Training Certificate to the registration form, so make sure you have completed that first.

Your certificate must be renewed every 3 years.

Transaction Privilege Tax (TPT) License

Since you’ll be selling taxable products, you must register for a TPT License from the Arizona Department of Revenue. This allows you to collect and remit sales tax on your sales.

Home Business License

Depending on the local regulations of your city or county, you may need to acquire a home business license or a home occupation permit. Contact your local government offices to determine the specific requirements in your area.

Insurance

In addition to insurance for your business, you may also want to contact your insurance company to determine the impact (if any) of a home-based business on homeowner’s liability.

Step 4: Comply with Labeling Requirements

Properly labeling your home-baked goods is crucial to provide transparency to customers and meet legal obligations. Ensure your labels include the following information:

Food label for selling home baked goods in Arizona that lists: the date item was produced, name and registration number of food handler, ingredients, a statement that the food was produced in a home kitchen, and the AZ DHS website for cottage food.

The product’s production date.
The name and registration number of the food preparer.
A complete list of all ingredients used in the product, including those in its components.
This exact statement: “This product was produced in a home kitchen that may come in contact with common food allergens and pet allergens and is not subject to public health inspection.”
If applicable for the product, a statement that the product was made in a facility by individuals with developmental disabilities.
The Department’s Website: www.azdhs.gov/CottageFood.

Step 5: Understand Selling Restrictions for Home-Baked Goods

Under Arizona’s Cottage Food Laws, you can sell your homemade products directly to the consumer. However, there are certain selling restrictions you need to be aware of. For instance, you cannot sell your cottage food items across state lines and there are selling restrictions related to perishable (TCS) foods. Review the “Selling Goods” section of the FAQ’s on the AZDHS website for more info.

Baking tools and supplies set up on a countertop

Starting a home-based baking business in Arizona can be an exciting and rewarding venture. By understanding and following the steps outlined above, you can help ensure your business operates within the boundaries of Arizona’s Cottage Food Laws.

Remember to stay compliant with permits, licenses, labeling requirements and selling restrictions while prioritizing food safety practices. With dedication and adherence to the regulations, you can turn your passion for baking into a thriving enterprise. Best of luck selling your home-baked goods!