Whole raw nuts, seeds and beans are agricultural. Roasting, seasoning, grinding into butters or mixing makes them processed food: register as a cottage food operation (or use a licensed facility).
B
Get allergen labels perfect
Tree nuts, peanuts and sesame are major allergens: list them by name in the ingredient list or a ‘Contains:’ statement, in addition to the home-kitchen statement (which flags shared kitchens).
C
Handle seed-for-planting separately
Anyone who labels, repackages or sells seed for planting needs an Illinois Seed Permit ($10 retail). Selling pre-packaged seed from a permitted supplier doesn’t; own-grown seed sold only on the farm is permit-exempt but must be tested and labeled.
3Quick-reference table
Item
Rule
Regulator
Whole nuts/seeds
Unprocessed, unsprouted: no restrictions at markets; may be bagged at sale.
Farm Products Marketing Act
Roasted, flavored, nut butter
Cottage registration; ‘condiments’ including nut butters are permitted.
Local health dept
Allergens
Tree nuts, peanuts, sesame etc. labeled per federal law.
FDA / IDPH
Seed for planting
Illinois Seed Permit ($10 retail; $30 wholesale); permit year July 1–June 30.
IDOA Seed Program
Traceability
Nut butters are on FDA’s Food Traceability List — compliance July 20, 2028 (small-farm exemptions apply).
FDA
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
Is a nut butter a cottage food?
Yes — condiments including nut butters are allowed if you make them in your registered home kitchen and label them correctly.
Can I sell sprouted almonds?
No. Sprouts are prohibited under cottage law and treated as a special process under FDA rules.
Do I need a permit to sell vegetable seed packets?
If you label or repackage seed, yes. Pre-packaged seed from a permitted supplier doesn’t require a permit.
How do I handle sesame?
Sesame is the ninth federal major allergen — list it clearly on every label if present.
Printable checklist
Whole/raw vs. processed SKUs separated
Cottage registration for roasted/flavored/butters
Allergen call-outs: tree nuts, peanuts, sesame
No sprouted nuts or seeds
Seed Law permit if labeling/repackaging planting seed
Label: ingredients, allergens, date, net weight, reg #
Register with IDOR; grocery tax by delivery address
Home-kitchen notice at point of sale online
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.