Hobby Breeder vs. Commercial Breeder: What's the Difference?

You may have heard people talk about "hobby breeders" and "commercial breeders" as if they are completely different things. In practice, the difference comes down to how many dogs you have, how many you sell, and where you live.

There Is No Universal Definition

The terms "hobby breeder" and "commercial breeder" mean different things in different states. There is no single federal definition that applies everywhere. Each state draws its own line.

How States Usually Define It

Most states use one or more of these factors to decide whether you are a commercial breeder:

• Number of intact (unspayed/unneutered) females: Many states set a threshold like 5, 10, or 20 intact females. Above that number, you are considered commercial.
• Number of litters per year: Some states count how many litters you produce annually. Producing more than 2 or 3 litters per year may make you a commercial breeder.
• Number of dogs sold: A few states look at total sales. Selling more than a certain number of dogs per year triggers commercial status.
• Revenue or profit: In some states, if you earn over a certain amount from dog sales, you may be classified as commercial.

Why It Matters

Commercial breeders typically face more requirements than hobby breeders:

• Licensing: Commercial breeders usually need a state license. Hobby breeders are often exempt.
• Inspections: Licensed commercial facilities may be subject to inspections by state or federal agencies.
• Record-keeping: Commercial breeders must keep detailed records of every animal they sell.
• Facility standards: Commercial operations may need to meet specific housing, sanitation, and space requirements.
• Fees: Commercial licenses come with annual fees that hobby breeders avoid.

The Federal Level

At the federal level, the USDA does not use the term "hobby breeder" officially. Instead, they use two key tests: how many breeding females you maintain, and whether you sell face-to-face or sight-unseen.

The USDA exempts people who maintain 4 or fewer breeding females and sell only their offspring, born and raised on their premises, for pets or exhibition. Per 9 CFR 2.1(a)(3)(iii), this exemption applies regardless of whether sales are face-to-face or sight-unseen. Those who sell only face-to-face may also qualify as a retail pet store, which is a separate exemption with no limit on breeding females.

A Common Misconception

Many people assume that if they call themselves a "hobby breeder," they do not need to worry about licensing. This is not always true. Some states require licensing even for small-scale breeders who produce just a few litters per year. The label you use does not matter — what matters is whether you meet your state's legal threshold.