General Questions From A Complete Newbie

Decorating By ohayr639 Updated 24 Jul 2009 , 3:51pm by djs328

ohayr639 Posted 23 Jul 2009 , 2:29pm
post #1 of 11

So I am very new to the making cakes thing and to Cake Central and I had a few questions that I can't find in the forums.
1. Is it wrong to look at pictures on here and try to make them myself, I would not tell people that I created them on my own?
2. Does anyone know the rules for selling cakes in Colorado or the process for getting a license?
3. Does anyone know if I can write off my cake supplies on my taxes if I am not licensed to sell cakes?

Thanks so much! icon_smile.gif

10 replies
cylstrial Posted 23 Jul 2009 , 6:28pm
post #2 of 11

Welcome to CC!

1. I don't think it's wrong to look at something and recreate it. Although, I do believe that you should give credit to the person (I always put who the name of who created the cake). And I always try to change it in some way to make it my own.

2. Here is the link for the info that KelleyM has gathered. It's grouped state by state.
http://www.cakecentral.com/cake-decorating-ftopict-586218.html

3. I have no idea!

mkm25 Posted 23 Jul 2009 , 6:46pm
post #3 of 11

Hello and welcome! I can't help you with your second and third questions, but I believe most people are ok with you adapting their cake design to their own. I see no problem with taking inspiration from someone else's work - after all, don't all artists work from "inspiration"? I agree with cylstrial, though, that you should credit the original artist when possible. You might even show that person your work - I know I'd love to see a cake that was inspired by my work! icon_smile.gif

ohayr639 Posted 23 Jul 2009 , 7:07pm
post #4 of 11

Thanks cylstria but I tried that link and for some reason it open on my computer. I can't download the document. Thank you to mkm25 as well. Would it be wrong to give the credit back to the person who originally thought/created the cake but then to sell it? Someone told me that would be wrong but people go into cake stores all the time with magazines and say make me this cake! So I was not sure.

mkm25 Posted 23 Jul 2009 , 7:15pm
post #5 of 11

No, I think it's perfectly acceptable to sell a cake, even though the design was adapted from someone else's work. It's not always possible to credit the original artist, but it's nice when you do. icon_smile.gif

GL79 Posted 23 Jul 2009 , 7:42pm
post #6 of 11

Yes everyone is right, as far as expensing your costs on the tax return, yes you can, so keep track of every expense related to your business, I'm an accountant and a newbie at making cakes too.

playingwithsugar Posted 23 Jul 2009 , 7:53pm
post #7 of 11
Quote:
Originally Posted by GL79

Yes everyone is right, as far as expensing your costs on the tax return, yes you can, so keep track of every expense related to your business, I'm an accountant and a newbie at making cakes too.




But if she's not licensed, how can she be in business? The only way she can deduct the cost of her supplies/tools, etc, is if she is paying taxes on her profits.

Theresa icon_smile.gif

GL79 Posted 23 Jul 2009 , 8:04pm
post #8 of 11

Theresa "But if she's not licensed, how can she be in business? The only way she can deduct the cost of her supplies/tools, etc, is if she is paying taxes on her profits. "

Besides a license you need a state tax #, and that's the one you need to pay taxes. But for know keep track of you income and expenses, your tax return won't be filed 'til next year, by then you'll probably have your business set up.

DreamCakesOnline Posted 23 Jul 2009 , 8:24pm
post #9 of 11

Another accountant here... Yes, keep track of them and pursue licensing quickly. You can deduct initial setup costs like small equipment, state licensing fees and even materials if you're using them as "promotional" or "research and development". I think the federal limit is $5,000 before you have to start spreading the expenses out over several years (as opposed to deducting them all in the year they were incurred). If you incorporate or become an LLC, you'll need to get a federal and state tax ID number so you're not handing out your social for wholesale pricing (no sales tax on things going into your goods you sell). You'll probably also have to collect sales tax if your state taxes food. However, if you don't pursue licensing, the expenses would be disallowed as a hobby instead of a business and if you have a business and you don't actively run it as a business they will also try to prove it's a hobby in an audit. For instance, if you raise purebred animals and don't sell them. Best thing to do is to get up with a CPA in your state to advise you on everything.

debster Posted 24 Jul 2009 , 2:30am
post #10 of 11

I'm in Ohio and not licensed we work under the cottage law here. Yes my CPA told me I can claim my expenses and I did last year. I agree with giving credit where credit is due also. Happy Baking and good luck with the business!! Post pictures for us please.

djs328 Posted 24 Jul 2009 , 3:51pm
post #11 of 11

Welcome to CC! It's a great place to learn and grow and be inspired!! (It's quite an addiction, actually!
Regarding your first question...whenever I see a cake I'd like to try or even use a part of, I try to PM (private message) the person and ask if they'd mind...most people on here are more than happy to help and inspire and provide tips! ) And yes, giving credit where it's due is a nice little thank you! icon_smile.gif

Good luck and happy caking!

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