What Makes A Buisness Legal?

Business By love2frost Updated 11 Oct 2009 , 11:17pm by jlynnw

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love2frost Posted 7 Oct 2009 , 12:51am
post #1 of 21

I've seen this term thrown around a lot on here...if your buisness is legal. What exactly doesn that mean? Is it that you work in an inspected and certified kitchen and you pay taxes or is there more to it?

20 replies
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Deb_ Posted 7 Oct 2009 , 12:58am
post #2 of 21

Yes. You're a licensed/inspected/registered/tax paying/law abiding legitimate business.

I don't think I left anything out. icon_biggrin.gif

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indydebi Posted 7 Oct 2009 , 1:03am
post #3 of 21

If you have to ask if you are ..... then you're not. icon_wink.gif

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jlynnw Posted 7 Oct 2009 , 1:23am
post #4 of 21

Ok, I am still working on it but nearly there.

I have my tax id, DBA, inspections to finish(hand sink not to regulations), what all license do I need. I also have insurance. I feel so lost. I am only renting a kitchen for 10 - 20 per month. (thanks indydebi for the polite push to get this done. All your advice from various threads have been a big help!)

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indydebi Posted 7 Oct 2009 , 1:31am
post #5 of 21

well, heck, darlin', sounds like you're halfway there! thumbs_up.gif

The inspections .... are you referring to building inspector inspections or health dept inspections?

The HD license is the gold at the end of the rainbow.

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jlynnw Posted 7 Oct 2009 , 1:55am
post #6 of 21
Quote:
Originally Posted by indydebi

well, heck, darlin', sounds like you're halfway there! thumbs_up.gif

The inspections .... are you referring to building inspector inspections or health dept inspections?

The HD license is the gold at the end of the rainbow.




The building inspector passed me but the hand sink we had installed, the plumber only connected to the cold water icon_confused.gif HD is waiting for it to be fixed. I also have to clean out the cabinets for my benefit mostly, get an exterminator under contract for HD. Now there is the LLC or S Corp and all that, I have no idea what to do, any thoughts?

PS sorry for hijacking your thread

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LaBellaFlor Posted 7 Oct 2009 , 3:55am
post #7 of 21

Oh I know you were so irritated that they didn't connect the HAND SINK with HOT WATER. Good luck when everything is completed! icon_biggrin.gif

Dkelly has just about everything and...insurance!

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Loucinda Posted 7 Oct 2009 , 12:23pm
post #8 of 21

It actually depends on where you live. Here in Ohio, you can legally have a cake business and not be licensed. (cottage industry laws) To BE licensed here, all you need is the inspection (they check to see to make sure you have no pets in your home or carpet in your kitchen) you give them the $10. fee and you are licensed.

Food is not taxed here in Ohio, so you don't HAVE to have the tax ID #. However, if you charge for delivery or rent equipment out, you do have to tax that.

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jlynnw Posted 7 Oct 2009 , 1:39pm
post #9 of 21

isn't the tax ID the same as a SS number but for a business? I mean, when you do your state and federal taxes, your tax id is needed to identify your business. Unless you do it as a hobby, then you liabilities would be on a personal level, right?

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tigerhawk83 Posted 7 Oct 2009 , 3:22pm
post #10 of 21

Iowa is a lot like Ohio - you can bake from home and food sales are tax free as long as consumption is off premises. As long as you sell non-hazardous items, which include most bakery items that don't have perishable fillings, you don't even need to be licensed, unless you are selling wholesale (to restaurants, stores,etc).

I recently double-checked this with the Iowa State Extension office and they confirmed this for me and even sent me the links to the Iowa Code section and language that verified this.

I suspect we have fairly liberal laws here because we are a rural state with lots of farmers markets - other items exempt are raw/unprocessed produce, eggs in shells, honey, and other non-potentially hazardous food (essentially does not require refrigeration).

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SimplyIced Posted 8 Oct 2009 , 7:34pm
post #11 of 21

Tigerhawk83- I'm from Iowa as well (near Des Moines) and I think we are VERY lucky here!! After reading everyone's posts on being licensed, etc, I'm glad I live in Iowa! I can't imagine going through all of that other stuff to do cakes. I'm not sure I would even bother because I wouldn't be able to afford it!

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jonahsmom Posted 11 Oct 2009 , 3:28am
post #12 of 21

TigerHawk & SimplyIced - I'm an Iowa gal, too! I'm glad we've got such liberal laws regarding baking cakes out of our home. I was just doing some more research tonight (looking for others like me in the area) and I came across the Simply Iced website.

I know we don't have to be licensed, but I still get this fear that someone's gonna come knocking on my door telling me to knock it off! But after seeing all of the websites for the locals (well...a couple hours away) I feel a lot better!

I was wondering if you Iowa gals that are unlicensed and working out of your homes do bridal shows, advertise, etc. I really want to do some of those things, but I'm chicken. Everyone says my cakes taste so much better than what can be found here in town and I'd like to take advantage of that. But I also don't want to get myself in a bind. Know what I'm sayin'?

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jlynnw Posted 11 Oct 2009 , 12:32pm
post #13 of 21
Quote:
Originally Posted by jonahsmom

TigerHawk & SimplyIced - I'm an Iowa gal, too! I'm glad we've got such liberal laws regarding baking cakes out of our home. I was just doing some more research tonight (looking for others like me in the area) and I came across the Simply Iced website.

I know we don't have to be licensed, but I still get this fear that someone's gonna come knocking on my door telling me to knock it off! But after seeing all of the websites for the locals (well...a couple hours away) I feel a lot better!

I was wondering if you Iowa gals that are unlicensed and working out of your homes do bridal shows, advertise, etc. I really want to do some of those things, but I'm chicken. Everyone says my cakes taste so much better than what can be found here in town and I'd like to take advantage of that. But I also don't want to get myself in a bind. Know what I'm sayin'?




I am so jealous! I would think if it is legal to do so, then you ought to be able to advertise, do show, pass cards the whole nine yards. Do you have liability insurance? That would be my only concern but I live in Texas and have a lot more to do. icon_mad.gif

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indydebi Posted 11 Oct 2009 , 12:38pm
post #14 of 21
Quote:
Originally Posted by jonahsmom

I know we don't have to be licensed, but I still get this fear that someone's gonna come knocking on my door telling me to knock it off!



I'm just curious on why you feel that way? icon_confused.gif

It's kinda like saying.....

you wont' drive 55 in a 55mph speed zone because you're afraid you'll be stopped for speeding when it's perfectly legal to drive 55 so why wouldn't you drive 55?

or.....

"I know I don't have to have a license to have children, but I'm afraid someone will come to my door and snatch them away."

or....

"I know when we got married we had all the proper paperwork and licensing but I'm afraid someone will come and tell me it's all a farce."

or....

"I know you don't need a license to buy food at the grocery but I'm afraid someone will come along and take all of my food away."

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jlynnw Posted 11 Oct 2009 , 12:51pm
post #15 of 21

gotta love that indydebi! Well said.

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jonahsmom Posted 11 Oct 2009 , 2:01pm
post #16 of 21

I know indydebi....stupid, huh?

I think I just wanted confirmation from others in Iowa in the same situation. (Unlicensed home bakeries) After all the websites I saw last night and after looking through TONS of posts on CC I'm much more comfortable. Truthfully, I had already emailed back and forth with the dept. of inspections and appeals regarding this very thing and they assured me it was fine. I did that before I ever sold my first cake.

I think after reading all of the licensed v. unlicensed stuff on here I got a little scared. Even though I know that it varies state by state, county by county, etc. But, I know it is RIDICULOUS to worry about the HD when they're not worried about me.

And I instantly look at my speedometer when I see a cop...even if I know I'm going the speed limit. Can you tell I'm a huge baby and just don't want ANY trouble?

Thanks for the reality check indydebi!

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StaceyCakes75 Posted 11 Oct 2009 , 2:26pm
post #17 of 21

Leave it to indydeb to say it like it is. I agree! If you dont need a license, get to it girl and make a name for yourself!! Some of us can only dream of owning our own shop. I live in CA and it is extremely hard and cost boat loads of $ to get legal. You should be thanking your lucky stars and doing a happy dance that it is so easy for you

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jonahsmom Posted 11 Oct 2009 , 2:33pm
post #18 of 21

*commencing happy dance*

(Be glad you can't see it! icon_lol.gif )

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saffronica Posted 11 Oct 2009 , 5:05pm
post #19 of 21

Wow, I wish it was that easy to sell from home here. I grew up in Iowa -- maybe it's time to move back!

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playingwithsugar Posted 11 Oct 2009 , 10:25pm
post #20 of 21

Y'all forgot "insured".

Theresa icon_lol.gif

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jlynnw Posted 11 Oct 2009 , 11:17pm
post #21 of 21
Quote:
Originally Posted by jlynnw

Quote:
Originally Posted by jonahsmom

TigerHawk & SimplyIced - I'm an Iowa gal, too! I'm glad we've got such liberal laws regarding baking cakes out of our home. I was just doing some more research tonight (looking for others like me in the area) and I came across the Simply Iced website.

I know we don't have to be licensed, but I still get this fear that someone's gonna come knocking on my door telling me to knock it off! But after seeing all of the websites for the locals (well...a couple hours away) I feel a lot better!

I was wondering if you Iowa gals that are unlicensed and working out of your homes do bridal shows, advertise, etc. I really want to do some of those things, but I'm chicken. Everyone says my cakes taste so much better than what can be found here in town and I'd like to take advantage of that. But I also don't want to get myself in a bind. Know what I'm sayin'?



I am so jealous! I would think if it is legal to do so, then you ought to be able to advertise, do show, pass cards the whole nine yards. Do you have liability insurance? That would be my only concern but I live in Texas and have a lot more to do. icon_mad.gif




Insurance pointed out here, but it is always good to get it in again!

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