Trying To Be Legal!

Business By WildSugar Updated 23 Aug 2009 , 5:09am by Ruth0209

WildSugar Posted 21 Aug 2009 , 12:29am
post #1 of 9

I want to do this cake selling thing legally, so i've been calling around to find out what i need to do. The health department said that as long as i was just selling baked good from my home and not a retail store, i dont need any kind of inspection or food safety anything. (Maybe because we're rural, i dont know?) My city said i just need a business application and a fee of $10, and the county said i need to file for and assumed business name and that i should talk to the state tax commission. THATS when it got iffy. That lady was a BEAST! I guess i was asking dumb questions (like, Do i have to charge sales tax?) but i've never done this before! I dont freakin' know!

Now i'm confused on what exactly i'm supposed to do. How and when do i pay state taxes and such? Will i get that info from them or do i have to figure it out on my own? I was afraid to ask the beast any more questions!

8 replies
tammyanderson6 Posted 21 Aug 2009 , 12:52am
post #2 of 9

step one: cakes fall under Dept of Agriculture, license is usually free. contact them for an inspection and application.

step two: contact your state dept of revenue and apply for a tax ID and get info for paying state will file monthly...keep good records.

step three: go back to "the beast" and give her copies of your new license and certificate. She should calm down and purr like a kitten and then answer any and all questions you have in a civilized manner. (she's evil now because you have no idea what she goes through every day with liers and cheats)

Congratulations on your choice to go legal! I've been there and done that and got the tiger scars to prove it. Have a great day!

kelleym Posted 21 Aug 2009 , 1:04am
post #3 of 9

Cakes don't always fall under the Department of Agriculture, it depends on the state... I think the Department of Health is correct for Idaho.

It wouldn't hurt you to consult with an accountant on all the tax questions, it can be daunting going into it as a layperson. Good luck icon_smile.gif

maryjsgirl Posted 21 Aug 2009 , 1:04am
post #4 of 9

I would suggest emailing instead of calling. I mean you may be calling right in the middle of someone doing a million things or at a high stress time. People tend to check and answer emails at a down time when other things aren't going on.

And don't let some grump stop you from calling back!

WildSugar Posted 21 Aug 2009 , 2:37am
post #5 of 9

Is applying for a tax ID different than getting a sellers permit? That's what the beast lady told me to do. Go online and apply for a sellers permit to register a new business. (But i have to wait for the assumed business name thing through the county first)

I just feel like she left a lot out. Like there should be a lot more involved than just applying for this sellers permit.

And i have to do taxes MONTHLY? Holy crap....i thought it would be quarterly or something!

Ladybug78 Posted 21 Aug 2009 , 3:06am
post #6 of 9

Hi everyone, I appreciate all your info. I am in NC... does anyone know about "legally selling cake" procedures for my state?

WildSugar Posted 21 Aug 2009 , 12:45pm
post #7 of 9
Originally Posted by Ladybug78

Hi everyone, I appreciate all your info. I am in NC... does anyone know about "legally selling cake" procedures for my state?

I have no idea about NC, but i just started by calling my city clerks office and they told me what they needed and sent me to the county. They told me what THEY needed and sent me to the state! Call your health department and talk to them too! That should give you a good start. At least as good as i've got so far! LOL!

MARYNES Posted 23 Aug 2009 , 4:45am
post #8 of 9

I live in NC too and I'd love to have a legally home bakery but i really don't know where to start. I went to nc department of agriculture webpage and it looks so complicated and when I finally got to the regulations they are like written in chinese.

Ruth0209 Posted 23 Aug 2009 , 5:09am
post #9 of 9

Yes, you have to collect Idaho sales tax on anything you sell. You need a seller's permit from the Idaho Tax Commission for that, and you'll probably have to submit the sales tax you've collected quarterly. They offer free classes for small business owners. You should see if they offer them in your area.

You also have to report your income and pay self-employment tax on your federal and state tax returns. You get a federal tax ID (an EIN) at the IRS web site.

You register your business name at the Idaho Secretary of State's office ($100).

You need business liability insurance (about $300-500 per year).

Go to the Idaho SCORE web site. There's all kinds of free information about running a business.

Even if you don't have to, you should take the food handler's class offered at the district Health Department. It's only $30 and it gives you a lot of good information.

It sounds like you have some work to do still on understanding the business side of things before you start up. That was the hard part for me because it's not all that interesting to me. But it's critical that you do it right so you don't get in trouble. There's a lot more to it than just turning on your oven.

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