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Chef_Stef
Forum Fanatic
Joined: May 11, 2006
Posts: 1754
Location: At my desk, in the garden, or in the kitchen
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Tue Jul 11, 2006 12:51 am |
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Health dept, I mean?
I'm losing sleep over something DH says is "torturing myself over a small matter"--that is, the issue of legality etc. My state doesn't license home kitchens, and I have found no where to rent. We will build, but until then...everyone is like, "Oh, come ON--just do it anyway! Who's going to care? What could happen?" Well, I keep thinking of...what could happen!!
What COULD happen?
We always talk about it, but have you ever actually gotten in trouble, or heard of anyone who's gotten in trouble? Ever? I haven't... and I know people who've "done it for years" etc. I hate doing things that are not above board, but I keep getting asked to do wedding cakes for big places like convention centers etc--so we're not talking back yard receptions. I'm really hesitant about showing up at a big area reception center with a home-made cheesecake and just setting up like I own the place...I want to be able to give out cards and be professional, but I don't want them to start asking "where'd this come from?"...I hate that feeling like I'm doing something subversive by making a bride a cake. The ones I've worked with fully know my situation and haven't cared. And no one I've ever talked to around here, including catering halls and kitchen managers, seems to have the slightest clue that you can't bake at home here... 
So--Anyone ever ACTually been "in trouble with the law" so to speak, or honestly know of anyone who has?? I can't sleep tonight worrying about a cheesecake coming up...
help... |
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mittmitt
Regular Member
Joined: Jun 10, 2006
Posts: 127
Location: indiana
Birthday: Aug 08
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Tue Jul 11, 2006 1:11 am |
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Since reading the business threads, I have decided that I want to do cakes from home too. Nothing big, just birthday and shower cakes, maybe a wedding cake or two. Just 1-3 cakes a week for extra $$. I don't want to "go into business" since decorating is a hobby of mine and if I did it professionally, I don't know if I would enjoy it anymore. Anyway, I have been thinking about the exact same thing you are thinking about, I'm terrified of "breaking the law" just to make a few extra bucks a month! I also don't want to have to pay $ to get licensed, go through inspections, maybe have to rent a place to decorate when I may actually take a loss doing this. I figure it's great practice for me, and could be profitable as well. I have sold a couple cakes before, but I think I undercharged both times. I am glad I found this site though, I have learned so much just in the short time I have been a member of this board. |
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MikeRowesHunny
Forum SuperStar!
Joined: Jan 27, 2006
Posts: 2801
Location: Quickstepping across the ballroom, cake in hand!
Birthday: Sep 20
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Tue Jul 11, 2006 2:38 am |
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KakesandKids
Regular Member
Joined: Jan 01, 2006
Posts: 109
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Tue Jul 11, 2006 5:00 am |
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In today's society where ppl love to sue and get free money it is too risky to operate illegally. I am legal, and carry liability insurance on top of that. I personally have not gotten into any trouble but I know a home baker in a town about 2 hrs from here got turned in by an angry customer who found out it was illegal to bake from home. She got a fine of close to $5k and was told to stop. When it happened the other health depts in other counties sent the word out that home baking for $ was not allowed and they would be buckling down. IDK if any1 else got in trouble or not. Isn't Earlene who got turned in by a competitor as well when she got started?
If you are doing things for friends and family without making $, but if u r running a business its illegal. If u r knowingly running an illegal business you can get it in trouble. Like with anything else that is done illegally u may not get caught and get in trouble but it is still illegal. The laws are in place for a reason, and if u r getting so much business it will b in your best interest to get legal. You are also putting other businesses who sell or have your products there in harms way if you are not legal.
Most ppl have no clue it is not legal to bake from home and they buy your stuff with no issue, but all it takes is 1 irrate mean person to find out its not legal and your sunk. |
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loriemoms
Forum SuperStar!
Joined: Nov 09, 2005
Posts: 2965
Birthday: Feb 12
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Tue Jul 11, 2006 5:09 am |
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Its the not the health department that would make me nervous...(the health department doesn't even control our home bakeries..the dept of agriculture does for some reason!). Its the tax department that I would worry about. In NC, you are required to charge 7% tax on every cake you sell and then file it quaterly. I don't know how other states are, though. That was my main focus on becoming legal...and I sleep better at night for doing so!  |
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mgdqueen
Forum SuperStar!
Joined: Jun 13, 2006
Posts: 2060
Location: TN
Birthday: Dec 18
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Tue Jul 11, 2006 5:20 am |
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The laws vary so much from state to state. When I lived in Indiana, I knew a lady that sold her WONDERFUL tea rings at a festival. People literally lined up to get them every year and she sold out of SEVERAL hundred. Well, one of the smalltown bakeries found out she wasn't licensed and turned her in. She was fined $1500 and told to find another kitchen.
She paid her debt and baked them in her church the next year. Lesson learned. My sister built a house with a second kitchen after that and became legal. She didn't want to risk it. |
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Doug
Forum SuperStar!
Joined: Jun 28, 2005
Posts: 9455
Location: NC - just off I95, North of the Border
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Tue Jul 11, 2006 5:23 am |
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so true, KakesandKids.
the county I'm in is "sue happy." one woman was sued and not only her...but the school district as well because her baked goods made some children sick. she wasn't licensed or inspected. she and district LOST. so now, any baked goods for schools must come from only licensed bakery.
thankfully, my state is easy to get licensed...but even so...
--must be inspected.
--need liability insurance (not a must, but stupid not to have and not all that expensive -- mine is under $50/yr)
--must have all necessary zoning permits and business licenses.
--HIGHLY recommended to also get a food handlers certification from local health dept. and for extra measure "ServSafe" certification to show you know proper sanitation and food handling regulations
it's NOT worth the risk not to do it right -- just one disgruntled customer -- or worse one angling for a quick buck (think of the case like this you've heard on the news) -- and everything could be gone. |
Last edited by Doug on Tue Jul 11, 2006 6:22 am; edited 1 time in total |
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KakesandKids
Regular Member
Joined: Jan 01, 2006
Posts: 109
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Tue Jul 11, 2006 6:11 am |
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Doug....school districts in this area have also adopted the policy that no baked goods from home are allowed. It is unfortunate that parents can't bake cookies or cupcakes for their kids classes, but these days every1 has to be careful. |
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ncdessertdiva
Forum Addict
Joined: Sep 22, 2005
Posts: 579
Location: Durham, NC
Birthday: Jul 30
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Tue Jul 11, 2006 7:23 am |
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Doug, where did find liability insurance for $50.00 a year? The few places that I've priced have been at least $200/year.
Leslie |
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Doug
Forum SuperStar!
Joined: Jun 28, 2005
Posts: 9455
Location: NC - just off I95, North of the Border
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Tue Jul 11, 2006 8:52 am |
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my insurance is an extension to my homeowners policy since I'm classified as low-volume home-based business (6 or so cakes a week). I have $300K in extra liability. My agent felt that is enough for now.
I'm with State Farm Insurance, which will do home businesses.
(and as luck would have it, my agent's aunt is a cake decorator in a different county. So I got no farther than "cake decorating" before he rolled his eyes and said he knew just what I needed.) |
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ncdessertdiva
Forum Addict
Joined: Sep 22, 2005
Posts: 579
Location: Durham, NC
Birthday: Jul 30
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Tue Jul 11, 2006 8:58 am |
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Thanks for info Doug! I've got to check with company our homeowner's insurance is with now. We're going to change companies, I think.
Leslie |
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4kids
Frequent Member
Joined: Mar 06, 2006
Posts: 481
Location: Asheville, NC
Birthday: May 15
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Tue Jul 11, 2006 9:02 am |
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You all have just opened my eyes. I got a note at the beginning of school last year saying that no one could bring in home baked goods which almost made me cry seeing as this is a major part of my life! I asked the teacher why this was and she had no idea. I now see what a big liability that could be. Thanks! |
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alip
Regular Member
Joined: Jun 08, 2006
Posts: 188
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Tue Jul 11, 2006 9:19 am |
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The school board I taught for before I had my babies had the same policy - no homemade treats. It was because of liability - you never know what someone's kitchen might be like. However, I taught in a low income school so I provided the treats for our class parties and I did make them myself. It didn't seem to be a big deal if teachers brought in homemade goodies but it was a big "no, no" for parents to do so. It makes me sad to think I won't be able to make cookies and cakes for my children to take to school once they reach that age. I can't stand the thought of having to get store bought treats! |
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wendysue
Forum Fanatic
Joined: Jul 18, 2005
Posts: 1208
Location: Kansas
Birthday: Oct 23
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Tue Jul 11, 2006 9:30 am |
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Wow, this thread really makes me a little nervous. I knew all this, but reading it again makes me feel like a common criminal. I only make a few cakes a year, but I do get paid for them.
One thing I remember reading under another thread was that if you're running a home-based business and your home owner insurance carrier isn't aware of it, your policy may not cover a loss. So, let's say you have a fire and the insurance company does it's thing and finds out you were running a bakery from home without their knowledge. They can say too bad, but we're not covering it. Even if the fire had nothing to do with your business.
There are just sooo many things to consider here. Definitely getting sued is one of them. I don't think you'd have to worry 99% of the time, but it's just that one customer who may have a beef with you and who decides to report you or take you to court. Then it's over and I have to wonder if it was all worth it?. How many of us can afford the fines or a lawsuit?
I won't be running a business from home! I'd lose sleep at night thinking about all the things that could happen. Don't need that kind of stress in my life or in the lives of my family. |
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SweetThistleCakes
Forum Addict
Joined: May 13, 2006
Posts: 666
Location: in the kitchen
Birthday: Nov 15
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Thu Jul 13, 2006 9:02 am |
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I sell in a different city than I live in but here, the city health inspector made it VERY clear that I could go ahead and advertise without the licensing but she would stop me from selling cakes in this city if I dared to attempt it. She really does her job and as far as I know, nobody bakes from home here anymore because they have heard how difficult they have made it for "homebakers".
The city I sell in doesnt waste time either. One instance, a woman not too far from me was told to pack up and go home because the health inspector came around and made rounds and found out that her pies where made from home. Apparentely, she also got fined $750. The promoter at the venue I sell at has even stated that they dont put up with any crap around here and that the city holds everyone accountable on the same page from 5 star restaruants to my small bakery booth.
What I can tell you is that when I was looking around for a kitchen to use, I was told by the owner of a kitchen that the State of TX has been known to browse in cake supply shops and pick up biz cards for those who are advertising and not licensed and then slap them with a fine. Rumor has it that they also check out websites and message boards to snoop around for unlicensed cake makers as well.
I've run into catty people from doing shows and festivals and such that would love to get more biz by turning in homebakers. They feel it is their "responsibility" to turn these people in because why shouldnt they have to pay for the licensing and such just like everybody else? Personally, for a couple hundred bucks for a license, tax id (free), and permits, I have peace of mind and it is well worth it. |
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, so that they are just pleased to have found the 'exclusivity' of what I do 
! I think the trouble would come if something you made made someone sick - that's when the Health Dept. would be sure to come knocking on your door. I make sure I observe high levels of hygiene and use the freshest ingredients to minimise the risk of that happening. I also refridgerate everything I make up until the last minute to help with this too (where the size of the finished cake allows - I've been known to empty my fridge out just to do this 
!). Good luck, I'm sure you'll be fine!
