Questions For Starting A Business In North Carolina

Business By Mom2ANC Updated 27 May 2008 , 5:00pm by travelingcakeplate

Mom2ANC Posted 25 May 2008 , 2:59am
post #1 of 6

Hi everyone. This is my first post here, but I have been lurking for a while. I have learned so much!
I am so confused after reading some things here and talking to people locally.
I guess I just want to know when does a hobby cross over into a business.
Right now, I just have some friends and acquaintances that I know that are asking me to make cakes for them and they want to pay me. Then, they tell someone else, and that person wants me to make a cake for them, and so on. I am a mom of three and one on the way and I homeschool, so I do not want to really be a full time baker out of my home, but I would like to maybe make one to two cakes a month, as a creative outlet, and sell them. It would be a *dream* to have a real business like you all do, later, but right now, I can't concentrate on it.
So, do I need a permit/license?
I called my town, and they said that since I won't have a storefront and lots of customers, that I can hold off on getting a permit from them until I see how it goes. But I ought to apply for a business license so they can give me a tax ID number.

But, then, an acct told me that I can operate just as a hobby for a year, and as long as I don't make over a certain amount, I don't need a tax ID number.

And a friend of mine that sold candy from home said all she did was have someone come out and look at her kitchen and that was it.

Is what I want to do just a hobby? Anything I make as a profit I will most likely use to support my hobby- buy gadgets, supplies, etc.

5 replies
sari66 Posted 25 May 2008 , 4:30am
post #2 of 6

First welcome! icon_smile.gif
Now it sounds like you are on the edge of being a business I say that not knowing how much you are making(cake and monetary) but you can just keep it as a hobby just as long as you wish. If you only want to make a couple of cakes a month just let customers know you're the one in charge of how much or how little you make.
You did the right thing in finding out from your town if you can do this from home just as long as you don't go outside of what they set you're fine. icon_smile.gificon_smile.gif

snarkybaker Posted 25 May 2008 , 9:02pm
post #3 of 6

The North Carolina deparment of Agriculture licenses home bakeries. It is illegal to sell baked goods without a license. That would be your first step before worrying about a local priveledge( business) license.

snarkybaker Posted 25 May 2008 , 9:02pm
post #4 of 6

The North Carolina deparment of Agriculture licenses home bakeries. It is illegal to sell baked goods without a license. That would be your first step before worrying about a local priveledge( business) license.

acookieobsession Posted 25 May 2008 , 10:01pm
post #5 of 6

I would get the inspoection form the dept of ag...it is free. you can discuss the tax id number with your acct, but if you charge the tax you just pay it over to the tax people, not too hard. You would rest easier just going the legal way since it is so easy, and relatively cheap....

travelingcakeplate Posted 27 May 2008 , 5:00pm
post #6 of 6

here is the website that will tell you everything.



http://www.agr.state.nc.us/fooddrug/food/homebiz.htm

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