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How to Start a Bakery (Home or Storefront) in Missouri

Many bakeries start at home and move to a commercial kitchen or storefront once demand is proven. What you can sell from a home kitchen, and where, is set by your state's cottage food law and varies widely. A storefront bakery is a food-service business with health permits, inspections and a commercial lease.

Reviewed November 5, 2026 · Sources linked inline

Missouri requirements for this business

  • Under Missouri's cottage food law (RSMo 196.298), home bakers may make baked goods in their home and sell them only directly to consumers; local laws may be stricter. [source]
  • Cottage food producers are not subject to state inspection, and the law does not require a permit for them. [source]
  • Labels must show the producer's name and address, food name, ingredients, net weight and allergens, plus a statement that it was prepared in a kitchen not inspected by the Missouri Department of Health and Senior Services. [source]
  • A clearly visible placard with the same not-inspected statement must be displayed where the cottage foods are sold. [source]
  • Food for home consumption is taxed at Missouri's reduced 1.225% state rate rather than 4.225%, with local sales taxes still applying. [source]

Statewide steps for every Missouri business — forming an LLC or registering a business name with the Missouri Secretary of State — are on our state licensing directory.

FirstBizGuide is not a government agency: any license or registration fees are paid directly to the agency named in each source. These are the Missouri facts we have verified so far, not a complete list. City and county rules vary — check with your local government before opening.

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a bakery cost worksheet →

SBA 7(a) loans in this industry

Retail Bakeries (NAICS 311811): 557 loans approved in FY2024–FY2026. Median loan $174,500; middle half $50,000–$500,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Retail Bakeries (NAICS 311811)

In Missouri: 105 employer establishments (2023) and 511 businesses without employees (2024). Nationwide: 9,219 employer establishments (2023) and 37,239 businesses without employees (2024).

The count of businesses without employees is for the broader Census group “Bakeries and Tortilla Manufacturing” (NAICS 3118), so it includes related businesses, not only this one.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Stand or floor mixer sized to your batches
  • Oven(s) — home kitchen under cottage food rules, commercial for a storefront
  • Sheet pans, cooling racks and storage
  • Scale, thermometers and measuring tools
  • Packaging and labels with ingredients and allergens
  • Display case (storefront)

Licenses and registration

  • If you bake at home to sell, check your state's cottage food law: it decides which foods are allowed, where you can sell and what labels must say.
  • Selling outside cottage food limits usually requires a licensed commercial kitchen and a health permit from your county or city.
  • Food handler or manager certification is commonly required.
  • If your state taxes your products, register to collect sales tax; register an LLC or trade name if you use one.
  • A storefront needs zoning approval, health inspections and any local business license your city requires.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • General liability with product liability
  • Business property coverage (storefront)
  • Workers' compensation once you hire
  • Event or vendor coverage for farmers markets

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Ingredients
  • Packaging
  • Kitchen rental or rent
  • Utilities
  • Labor
  • Insurance
  • Card fees and marketing

Use the break-even calculator to see how many jobs or sales cover them.

Common mistakes

  • Selling foods your cottage food law doesn't allow
  • Labels without ingredients and allergens
  • Pricing without counting your time
  • Signing a storefront lease before demand is proven
  • Too large a menu

Finding customers

  • Farmers markets and pop-ups
  • Custom orders for birthdays, weddings and offices
  • Instagram photos of every order
  • Wholesale to coffee shops

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources