Illinois · Direct-to-Consumer ComplianceFARM EXEMPT — CULTIVATED ONLY
Mushrooms
Cultivated fresh mushrooms, dried mushrooms and grow kits
Cultivated onlyWild-harvested banned
Source docsProve an approved source
Grow kitsNot regulated as food
Dried → cottageProcessed mushrooms
1What’s covered & what needs more
Covered under this path
Commercially raised (cultivated) mushrooms — button, portabella, shiitake, enoki, oyster, etc. — treated as an agricultural product with documented source
Mushroom grow kits, agar, slants and liquid cultures (not food)
Dried, powdered or pickled cultivated mushrooms under cottage rules
Needs a different path
Wild-harvested/foraged mushrooms → cannot be sold at farmers markets or used in cottage products — even if bought from a forager
Dried, powdered, pickled or cooked mushroom products → cottage kitchen or licensed facility
Sliced mushrooms sampled at a market → ≤ 41°F and sampler certification
Psychoactive/psilocybin mushrooms → controlled substances; never list
2Three steps to compliant sales
A
Document your source
Keep records showing your mushrooms are cultivated — spore/culture purchase receipts, grow records, or supplier invoices. Health departments may ask for them.
B
Separate fresh from processed
Fresh cultivated mushrooms are agricultural. Once dried, powdered, pickled or made into other products they aren’t — register as a cottage food operation (CFPM) or use a licensed kitchen.
C
Label & sell
Use common variety names on labels; sell direct at markets or online. Mushroom supplements or extracts with health claims fall under supplement rules — see that guide.
Prohibited from sale at farmers markets and under cottage law.
IDPH
Grow kits & cultures
Not food; not regulated by the Cottage Food Law.
IDPH
Dried/powdered/pickled
Not agricultural — cottage food or commercial kitchen.
IL Farmers Market Guide
Label must-haves
Operation name + local government unit; registration # + county/municipality; common name; every ingredient (incl. sub-ingredients) by weight; federal allergen labeling (milk, eggs, wheat, peanuts, soy, fish, tree nuts, shellfish, sesame); processing date (month/day/year); net weight; and the home-kitchen statement.
IDPH / local health dept
4Frequently asked
Can I buy wild mushrooms from a forager and resell?
No. Wild-foraged mushrooms are prohibited even when purchased commercially.
Do grow kits need a cottage registration?
No. Grow kits are not food and fall outside the Cottage Food Law.
Can I sell dried lion’s mane powder?
As a cottage food only without health claims and only from cultivated mushrooms; supplement claims trigger FDA supplement rules.
What proof do I need?
Receipts for spores/cultures or other cultivation records; for purchased mushrooms, your supplier receipt.
Register with IDOR; grocery tax by delivery address
No psychoactive products
Sales tax: Groceries: Illinois’ 1% state grocery tax ended Jan 1, 2026, but many cities and counties (Chicago included) now levy their own 1% local grocery tax — check the rate for each delivery address. Register with the Illinois Department of Revenue (IDOR) through MyTax Illinois.
Selling on a marketplace: Cottage-food sales must be made by the registered operator (or a listed family member/employee) directly to the consumer, inside Illinois. Online listings work when the operator is clearly the seller and the home-kitchen notice appears at the point of sale. A platform can list and take payment, but should not take title, repack, or distribute the product.