FromScratch Posted 23 Oct 2008 , 11:12pm

Kitagrl.. I hope you aren't referring to me, because the only reason I put in how I went about getting licensed is so that people could see that it wasn't something hard to do for me so that maybe they would believe that I did it before going public since it was stated that someone didn't buy it. And also.. maybe someone from NH is reading and thinking it is going to be hard to get legal and reading that it was really easy for me might give them a sigh of relief.

There are too many personal feelings in this on both sides now and this has gone past being productive. I am officially done with this post.. I just wanted to clarify.

summernoelle Posted 23 Oct 2008 , 11:37pm
Quote:
Originally Posted by jkalman



No one here would ever turn someone in.. at least I would hope not.




Unfortunately, this isn't true. Anyone remember John and Maria? I had a member PM me and tell me they turned them in to the HD.

AmeliaBedelia Posted 23 Oct 2008 , 11:58pm
Quote:
Originally Posted by Mike1394

Actually I'm quite jealous of PA, and OH to name a few that do allow bakeries fairly easy in home. LOLOL

Mike



I've just been skimming this thread. The only cakes I have made are for my immediate family. I don't plan to make or sell cakes to anyone outside of extended family (if even that ever happens), but just for curiosity's sake, where can I find info on Ohio's laws regarding selling cakes?

costumeczar Posted 23 Oct 2008 , 11:59pm

I know a caterer whose hobby it is to turn illegal operations in. He finds people who are catering without a license by word of mouth, then turns them in to the health department. In my state the person who turns someone in gets a percentage of the fines and back taxes that are collected when they collect all the fines, and he told me that he makes a good bit of money by turning people in.

I think that Loriemoms was one of the only people in this whole thread who pointed out that if you're doing any kind of illegal selling of anything, (take cake out if it for the purpose of this example!) you're not paying income taxes on that income. That's something that the IRS doesn't take lightly, and the do collect their back taxes when they find you...

Kim_in_CajunCountry Posted 24 Oct 2008 , 1:26am

AmeliaBedelia (I loved those books as a kid):

My coworker and fellow caker recently asked me about Ohio because she has a friend who lives there. I went to www.ohio.gov and searched on cottage foods, which brought me to this page in the Department of Agriculture. Looks like you are fortunate to live there since Ohio does allow you to bake cakes in your home, with guidelines and restrictions, of course.

Good luck!

Kitagrl Posted 24 Oct 2008 , 1:51am
Quote:
Originally Posted by costumeczar

I know a caterer whose hobby it is to turn illegal operations in. He finds people who are catering without a license by word of mouth, then turns them in to the health department. In my state the person who turns someone in gets a percentage of the fines and back taxes that are collected when they collect all the fines, and he told me that he makes a good bit of money by turning people in.

I think that Loriemoms was one of the only people in this whole thread who pointed out that if you're doing any kind of illegal selling of anything, (take cake out if it for the purpose of this example!) you're not paying income taxes on that income. That's something that the IRS doesn't take lightly, and the do collect their back taxes when they find you...




That's how I knew it was time to get my license...when I felt I was starting to actually pull a profit. Before, any money I made was spent right back buying supplies and equipment. No taxable profit there. Actually this year, my first licensed year, I've done better than ever before but still may not have enough "profit" to tax...maybe just a little.

That's my only point here and I'm sorry if I'm coming across mean or snotty...its just that most of the time the "newbies" selling cakes are not pulling a taxable profit! I mean yeah, if they are pulling in several thousand a year its time to look into the licensing and all but most of them are not.

And I am extremely irritated that there are actually people who make money by getting other people in trouble. I barely have enough time to juggle my own life, to say nothing of somebody else's. If the Dept of Health really truly wants to "get" people, they should hire someone in their own office to do it...not pay "spies". Ya know?

Oh well. icon_smile.gif

Sorry if I've made anyone upset....I just know its tough to feel "ganged up on" and I just wanted to stick up for the newbies a bit here... knowing that they will get licensed as soon as they are able....and some that cannot in their state...if they are willing to take the risk of selling via word of mouth, that is their decision to make and that decision is really none of my business.

FromScratch Posted 24 Oct 2008 , 2:10am

I feel the same way Suzy.. if someone wants to fly under the radar it's not for me to say anything about them personally as a human being.. but I like to spread the information. I try to keep it impersonal.. and usually I can do that.

I also find it appalling to think that people make money for turning others in. I wouldn't ever even think to turn someone in. I have WAY too much going on here to even think about it.

Just know that I am not upset.. in anyway.

AmeliaBedelia Posted 24 Oct 2008 , 3:09am
Quote:
Originally Posted by Kim_in_CajunCountry

AmeliaBedelia (I loved those books as a kid):

My coworker and fellow caker recently asked me about Ohio because she has a friend who lives there. I went to www.ohio.gov and searched on cottage foods, which brought me to this page in the Department of Agriculture. Looks like you are fortunate to live there since Ohio does allow you to bake cakes in your home, with guidelines and restrictions, of course.

Good luck!



Thank you!

chutzpah Posted 24 Oct 2008 , 4:52am

Actually, I did turn someone in last year.

jammjenks Posted 24 Oct 2008 , 11:59am
Quote:
Originally Posted by Cake_Princess

Please raise your hand if you started off selling cakes before you became "legal". Be honest now. This is interesting.





**raises hand**

indydebi Posted 24 Oct 2008 , 12:08pm
Quote:
Originally Posted by jammjenks

Quote:
Originally Posted by Cake_Princess

Please raise your hand if you started off selling cakes before you became "legal". Be honest now. This is interesting.




**raises hand**




Ditto.

Kitagrl Posted 24 Oct 2008 , 12:11pm
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by jammjenks

Quote:
Originally Posted by Cake_Princess

Please raise your hand if you started off selling cakes before you became "legal". Be honest now. This is interesting.




**raises hand**



Ditto.





Me too...

KeltoKel Posted 24 Oct 2008 , 12:37pm
Quote:
Originally Posted by Mike1394

Quote:
Originally Posted by TERESA77

Guess Im just a bit touchy today.Pms maybe. Im just saying there are some people who are rude with teir answers.



Harsh maybe rude not.

Mike




There is no need to be harsh or rude. Plenty of people have answered this thread without being either one.

jammjenks Posted 24 Oct 2008 , 12:42pm

I realize ignorance is no excuse, but I honestly didn't even think about "getting legal" before I read about it on CC. It was just a hobby for me. People started paying me and so I thought, "Hey, I can make a few extra bucks doing something I like to do." Only after joining CC and reading on here did I realize that it would be best to go through all the proper channels. We are very rural here and a lot of people in our town have little things they do from home for a little extra cash...mowing grass, making candles, tailoring clothes, etc. It just seemed like one of those types of things to me. I do realize it is best to be legal before doing public business, but I am also glad that I got my feet wet before spending a lot of time and $$ on the legalities of it all. Actually in NC, it is not hard to become a licensed home baker and that's been my project since a few months ago when I got my inspection. Now I have everything in line and it honestly is a relief.

indydebi Posted 24 Oct 2008 , 12:49pm
Quote:
Originally Posted by jammjenks

I realize ignorance is no excuse, but I honestly didn't even think about "getting legal" before I read about it on CC.



When I first got started (probably before most of you were born!), I had no idea there were legalities involved. (Health Dept? License? Inspections? You need those? No kidding? Really?) But this was also 'back in the day' before the internet and definitely no CC helpers! And like you, it was a small town where everyone did a little something on the side for extra money.

The folks just starting out in this field are SO lucky and blessed to have access to good info that is shared here on CC .... you have the chance to learn in just a few weeks what took many of us a lifetime to figure out! And that's why many of us "share with a vengeance!" ...... I dont' want others to have to learn it the hard way .... I want to share what I've learned so they don't have to battle the stumbling blocks like I did. Maybe by sharing my experiences, they can save time and money as they work to get their dream-business off the ground.

momma28 Posted 24 Oct 2008 , 1:30pm

For those in Virginia I looked up the vda rules governing home baking business. Just FYI. There is a whole lot of arguing going on but not a whole lot of information posting so I figured it wouldn't take more than a minute to copy and paste. Of course this is only valid information for those in Virginia. Google is a wonderful tool icon_smile.gif


Location of a Home-Based Bakery
The Virginia Department of Agriculture and Consumer Services (VDACS) has the authority to see that clean and wholesome bakery products, such as cakes, breads and cookies, are prepared under proper conditions. Although a license is not required for a home-based bakery, VDACS must inspect the facility that you intend to use. A separate kitchen is not required, but the products and ingredients must be kept separate from those used by your family. VDACS will need formulations (recipes) of the products that you intend to prepare as well as flow processes for these products. To insure that good manufacturing practices (GMP) are used, all products must undergo basic laboratory testing to make sure that they are not adulterated with bacteria that cause foodborne illness.

If the products will be sold to retail outlets, they must be labeled. The label must include: 1) name of the product; 2) net weight of the product; 3) name and address of the manufacturer and 4) a list of the ingredients in descending order by weight. All packaging used for the products must be made of food grade sources, as recognized by the Food and Drug Administration and the United States Department of Agriculture.

FromScratch Posted 24 Oct 2008 , 1:55pm

There is a huge thread posted at the top of the business section that lists it out by state and if each state allows the licensing of home kitchens. It's a sticky post.

-K8memphis Posted 24 Oct 2008 , 2:04pm

Pms'rs got nothing on the post menopausal...that are not currently behind bars.

We have the attention span of a four year old at the circus and the patience of a two year old in church.

"Are we there yet?"

icon_lol.gif

forthwife Posted 24 Oct 2008 , 2:24pm

Ok, so I've never recieved any money at all from my cakes. I pay for them entirely then donate them. I've been informed (on this site) that getting $3 to cover basic materials is a business transaction, so my next question is. Is it a business transaction to bake a cake for a church member's baptism party where they asked me to provide a service, but instead of receiving payment asking them to make a donation to the church? That way I get no money, but am at least feeling like something good is coming from the cake, other than happy tummies. I can't imagine I could get turned in for something like this because I don't think it's wrong....lemme know!

Callyssa Posted 24 Oct 2008 , 2:24pm

OH my gosh, is THAT what's wrong with me??!! I'm only 40 (ONLY....yeah! I remember when 40 was waaaaayyyy old!), I can't be facing this yet!!!

-K8memphis Posted 24 Oct 2008 , 2:43pm
Quote:
Originally Posted by k8memphis

Pms'rs got nothing on the post menopausal...that are not currently behind bars.

We have the attention span of a four year old at the circus and the patience of a two year old in church.

"Are we there yet?"

icon_lol.gif




Quote:
Originally Posted by Callyssa

OH my gosh, is THAT what's wrong with me??!! I'm only 40 (ONLY....yeah! I remember when 40 was waaaaayyyy old!), I can't be facing this yet!!!




Well there's no clear right or wrong to it. The one phrase that I think most characterizes this time of life is free at last.

<insert dancing gleefully smilie face>

Kitagrl Posted 24 Oct 2008 , 3:39pm
Quote:
Originally Posted by forthwife

Ok, so I've never recieved any money at all from my cakes. I pay for them entirely then donate them. I've been informed (on this site) that getting $3 to cover basic materials is a business transaction, so my next question is. Is it a business transaction to bake a cake for a church member's baptism party where they asked me to provide a service, but instead of receiving payment asking them to make a donation to the church? That way I get no money, but am at least feeling like something good is coming from the cake, other than happy tummies. I can't imagine I could get turned in for something like this because I don't think it's wrong....lemme know!




If my sister pays me $20 to buy material and make her a dress, its a favor. I can't see why cake would be any different if you are not running a business and advertising.

Mike1394 Posted 24 Oct 2008 , 3:58pm
Quote:
Originally Posted by Kitagrl

Quote:
Originally Posted by forthwife

Ok, so I've never recieved any money at all from my cakes. I pay for them entirely then donate them. I've been informed (on this site) that getting $3 to cover basic materials is a business transaction, so my next question is. Is it a business transaction to bake a cake for a church member's baptism party where they asked me to provide a service, but instead of receiving payment asking them to make a donation to the church? That way I get no money, but am at least feeling like something good is coming from the cake, other than happy tummies. I can't imagine I could get turned in for something like this because I don't think it's wrong....lemme know!



If my sister pays me $20 to buy material and make her a dress, its a favor. I can't see why cake would be any different if you are not running a business and advertising.




Without knowing what state she is from couldn't this be bad info? I don't see much difference either, but I don't make the laws. If laws were made by common sense we wouldn't much be in the predicament that we're in now.

Mike

bobwonderbuns Posted 24 Oct 2008 , 4:03pm

There used to be a couple of threads here on CC about starting home based baking businesses and which states were legal for that, but I'm not sure if they are still around. Does anyone remember those threads?

kelleym Posted 24 Oct 2008 , 4:07pm

As jkalman mentioned, it's a sticky thread at the top of this forum. However, the thread is quite large and with the last few pages corrupted in the crash it's hard to navigate. Here's the most recent info I have.

FromScratch Posted 24 Oct 2008 , 4:57pm

Kelly.. maybe we could see if Heath or Jackie could delete the old thread and put your latest update in a new one? That thread is full of info if you can weed through it, but it can be confusing with all the missing posts from the crash. Thanks again for keeping up with that list. icon_smile.gif

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