09/03/2025
Under the updated Texas Cottage Food Law, you can no longer operate as an LLC or S-Corp under the cottage food law, and must function as a sole proprietor as of September 1, 2025. If you are selling under a name other than your personal legal name, you must file a Doing Business As (DBA) certificate with your county, not with the state. This change impacts LLCs and S-Corps, requiring them to form a DBA under the individual's name to operate under the cottage law, which has been expanded to allow more food types and higher sales limits.
Key Changes Effective September 1, 2025
No LLCs or Corporations:
The updated law requires cottage food producers to operate as sole proprietors, not as registered business entities like LLCs or S-Corps.
DBA Required for Business Names:
If you use a business name that is not your personal legal name, such as "Sweet Life Treats," you must file a DBA with your county.
No State-Level DBA for Cottage Law:
You file the DBA with your county clerk, not the Texas Secretary of State, as the operating structure is a sole proprietorship under cottage law.
Expanded Product Offerings:
The law allows for the sale of a wider variety of foods, including many Time and Temperature Controlled (TCS) foods, with specific exceptions.
Increased Income Cap:
The annual gross income limit for cottage food producers has been raised to $150,000, with annual adjustments for inflation.
Registration for TCS Foods:
You must register with the Department of State Health Services (DSHS) to sell TCS foods and meet specific labeling requirements.
What to Do
If you currently have an LLC:
You need to operate your cottage food sales under your personal name and file a county-level DBA if you use a business name.
If you are not using a business name:
You may not need a DBA; you can operate under your legal name as a sole proprietor.
If you have TCS foods:
Register with DSHS for a unique identification number and follow the specific labeling and handling instructions.