ARLINGTON, Va.—Across Wisconsin, home bakers are getting bad advice from the state government, which is telling them to stop selling their foods through a business entity, like an LLC. Today, the Institute for Justice (IJ) sent a letter to Gabe Johnson-Karp, Assistant Attorney General for the State of Wisconsin, urging the Department of Agriculture, Trade and Consumer Protection (DATCP) to immediately stop these communications and let home bakers make their own decisions about how to run their business.
“The ruling that freed Wisconsin bakers to sell their foods was clear that they could operate as a business entity,” said IJ Attorney Suranjan Sen, who authored the letter. “It is absurd to suggest that a loaf of banana bread becomes dangerous the moment its baker files LLC paperwork.”
IJ helped three Wisconsin farmers win the right to sell home-baked goods directly to consumers without having to obtain a commercial license or spend thousands of dollars building a commercial-grade kitchen. Lafayette County Circuit Court Judge Duane Jorgenson held that, so long as a food is homemade, shelf-stable, and baked in an oven, DATCP “must allow its direct-to-consumer sale.” Despite that clear order, DATCP now claims it applies only to individuals and not to LLCs or other business entities.
In a January 29, 2026, email to a Wisconsin resident, a DATCP regulatory specialist wrote that the department’s legal team had concluded that the previous decision and subsequent rulings applied only to “Wisconsin individuals directly selling home baked goods to consumers, not business entities.” But this plainly contradicts a 2018 order from Judge Jorgensen, which clarified that his previous ruling on home sales applied to “business enterprises seeking to make a profit.”
“Some home bakers use LLCs to protect their personal assets and let customers know that these are legitimate businesses,” said Jobea Murray, board president of the Wisconsin Cottage Food Association. “Whether they sell it in their own name or through an LLC, the bread is the same.”
DATCP’s new position also creates an irrational double standard: under Wisconsin law, nonprofit corporate entities are already permitted to sell similar foods without a license, but for-profit LLCs selling the exact same shelf-stable baked goods would be shut out. Business owners often choose to run their business as an LLC to prevent lawsuits that could lead to the loss of their personal assets, including a home or retirement savings. IJ is asking DATCP to confirm in writing that Wisconsinites may sell their homemade, shelf-stable baked goods through an LLC or other business entity without agency interference.
IJ’s National Food Freedom Initiative aims to eliminate restrictions that prevent people from making food for sale in their home kitchens. IJ has successfully represented a home baker in Nebraska, farmers and entrepreneurs in North Dakota, a group of moms in New Jersey, and other clients in their fights against irrational and overly burdensome regulations.