Business Help

Business By artlover Updated 30 Sep 2009 , 11:10pm by artlover

artlover Posted 30 Sep 2009 , 2:40pm
post #1 of 8

I found a kitchen and i was about to get licensed then the lady who already has a license in the same kitchen told me i can work under her license.and i can take the money i make all i need to do is give her half of the rental fee.to me it is a good deal.
I am happy with this deal mainly because we might move from this state after 2 more years . now we are getting orders from other bakerys to provide GF products that we make. but i need to know if there is any danger in this arrangement.
Hope experts from this site can help me thank you in advance.

7 replies
cakesdivine Posted 30 Sep 2009 , 3:16pm
post #2 of 8

To my knowledge, the only way you can do this under another entities license is if you are their employee or you become legal business partners under the same business name. If you go by any other name and have a separate DBA as a sole proprietor, then you must get your own license. Even using someone elses kitchen that is licensed you must have your own at least that is how it is here in Texas. You would have to check with your state. Scenario: A commercial client who is reselling your product requests your license info (which they should to protect their interests and the end user client). You produce the license of the kitchen you are using...they notice totally different name of business than yours so they decline the order, or if they accept it other scenario....end user gets sick files claim against your commercial client, commercial client sues the business with the license, you get sued by the kitchen owner who in turn boots your butt out even if it was her kitchen's conditions that caused the illness. You have no insurance because you have no occupational license you loose EVERYTHING. Way too big of a risk if you ask me. Just Get LEGAL it is far less money than you think. And there is no price you can put on peace of mind!

artlover Posted 30 Sep 2009 , 3:31pm
post #3 of 8

Thank you for your responds.i sell everything under her license name.
i dont have anything seprate.

cakesdivine Posted 30 Sep 2009 , 4:35pm
post #4 of 8

So then basically you are her employee.

artlover Posted 30 Sep 2009 , 5:01pm
post #5 of 8

i think that is what i am.she said i can keep the profit of what i make. is this legal.i dont want to do if it is illegal.

cakesdivine Posted 30 Sep 2009 , 6:17pm
post #6 of 8

It depends...Is she collecting the fee and then paying you? Is she accepting the orders through her company? Is she providing the ingredients, tools, paper goods, etc? If these are clients that you directly solicited and you collect the money directly then you are not her employee. You could possibly be classified as an independant contractor providing a service for her business but in that case she cannot set your fee, and she cannot "manage" you or your work. She can discontinue using your services if she so chooses. Let's say she has clients X Y & Z who want cakes, she herself doesn't do cakes so she contracts you to do them in her licensed kitchen on her behalf. You charge her a per hour fee or per item fee, or materials + labor fee, produce the cakes and she sells them at a price she has determined based on what you charged her so she can make a profit. In that instance it is perfectly ok to not be licensed yourself, It is kind of like being a personal chef but for a food establishment. I would still, if I were you, obtain a food handlers/food managers food safety certificate.

indydebi Posted 30 Sep 2009 , 7:10pm
post #7 of 8

There is also a legal definition of "independent contractor". We looked into this since I use folks on a sporadic basis (only on Saturdays when I have a wedding). Our accountant (both of them) and our attorney told us you can't just decide someone is an independent contractor. There are guidelines that have to be met.

artlover Posted 30 Sep 2009 , 11:10pm
post #8 of 8

Thank you thank you so much, now i am thinking of getting the license.so i dont have to worry about wheather it is legal or not.

Quote by @%username% on %date%

%body%