Is This A Business Transaction?

Decorating By Rachie204 Updated 18 Nov 2009 , 5:48pm by __Jamie__

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Rachie204 Posted 17 Nov 2009 , 10:18pm
post #31 of 40

Thanks everyone for your responses. "Guess I shouldn't have taken $20 from my mom...LOL" Oh well we will let that one slide. HAHA

I refuse to do anything that is illegal or unethical

1) Because as a Christian I believe that lying is unacceptable

2) When I start my cake bussiness I want to be respected and found trustworthy.

I will begin to research local kitchens for rent.

Thanks Again!!!

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-K8memphis Posted 17 Nov 2009 , 10:58pm
post #32 of 40
Quote:
Originally Posted by __Jamie__

Quote:
Originally Posted by Rachie204

Okay I live in GA where home kitchens are not permitted. So for now I am just trying to perfect my recipes and decorating skills by doing lots of cakes. And later I plan to rent a kitchen and start charging for my work.

As you know caking can get expensive when you are buying ingredients and not getting paid for cakes....Is it okay to charge for the ingredients only and make no profit or would this be illegal also?



Yes. Now where's K8.... icon_lol.gificon_lol.gif




I'm right here. I see this has pretty much been resolved. But maybe you'd be surprised to know I agree with you, Jamie. To me volume rules over price anyday.

Rachie states she does 'lots of cakes'. Dude, that's not right and like I said I see you are making arrangements to make it right. That's great for you--I'm happy for you.

I did two cakes that I charged for this year, I paid taxes on them. I do not run a cake business. Others may think that is a business --that's ok with me if they think that. I say "No, sorry" a lot.

I don't see anything wrong with making one cake for your work place and getting paid for it when they have approached you with the idea. (like in that other thread) making 'lots of cakes'--uh ugh

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Ruth0209 Posted 18 Nov 2009 , 2:07am
post #33 of 40
Quote:
Originally Posted by phoenixphillips

Quote:
Originally Posted by Ruth0209


You can't possibly be serious. In the first place, even if you were busy babysitting you probably never made enough to make it reportable.


Secondly, all people operating a business in the U.S. have federal and state laws that EVERYONE has to comply with or you create an unfair advantage for those who don't play by the rules. As a legal business that follows all the regulations, I resent someone who basically steals from taxpayers by not paying what they rightly owe. It cannot in any way be compared to a teenager making a few hundred bucks of pocket money. I'd love to be able ignore all the rules and keep all the money I bring in, but not only is it not legal, it's unethical. Am I really the only person who believes we all have a duty to pay our fair share of taxes?



How many times are we told on here If cash is exchanged its a business transaction. Please tell me the difference b/t taking money for a cake vs babysitting services. And if a babysitter making a couple hundred bucks a year doesn't make enough to report it then some of these illegal bakers dont need to report either, right?

Im just curious how many legal bakers report the money they give to their babysitters, lawn boy, the neighbor kid who rakes their leaves, etc. I mean cash is exchanged for a service, its a business transaction. icon_rolleyes.gif




The purchaser of the services doesn't report the transaction. It's income for the person who is paid for it, not the person who buys it.


[/b]

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Rachie204 Posted 18 Nov 2009 , 2:16am
post #34 of 40

"Rachie states she does 'lots of cakes'. Dude, that's not right and like I said I see you are making arrangements to make it right. That's great for you--I'm happy for you."


I just wanted to clarify that the "Lots of cakes" that I was referring to have ALL been straight out of my pocket and either given as gifts or eaten in my own home by my husband and myself....I have not made any cakes in exchange for money at all...That is why I wanted to ask this question before I did something wrong. (My mom did give me $20 to make a cake for my brothers birthday but I have not done the cake yet...and I think that is sort of a different situation all together anyways.)

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-K8memphis Posted 18 Nov 2009 , 3:02am
post #35 of 40
Quote:
Originally Posted by Rachie204

"Rachie states she does 'lots of cakes'. Dude, that's not right and like I said I see you are making arrangements to make it right. That's great for you--I'm happy for you."


I just wanted to clarify that the "Lots of cakes" that I was referring to have ALL been straight out of my pocket and either given as gifts or eaten in my own home by my husband and myself....I have not made any cakes in exchange for money at all...That is why I wanted to ask this question before I did something wrong. (My mom did give me $20 to make a cake for my brothers birthday but I have not done the cake yet...and I think that is sort of a different situation all together anyways.)




Even better.

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MissRobin Posted 18 Nov 2009 , 3:04pm
post #36 of 40

I have to agree, I don't think the issue is only about the money, I think it is more that it is coming out of your home kitchen, and in some states and counties, that is illegal.

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Pookie59 Posted 18 Nov 2009 , 5:18pm
post #37 of 40

Have you ever looked at the Pets section on CraigsList? You can't sell pets, but it's okay to charge a "rehoming fee".

Just "rehome" your cakes.

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__Jamie__ Posted 18 Nov 2009 , 5:19pm
post #38 of 40
Quote:
Originally Posted by Pookie59

Have you ever looked at the Pets section on CraigsList? You can't sell pets, but it's okay to charge a "rehoming fee".

Just "rehome" your cakes.




That's the best one I've heard yet! icon_lol.gificon_lol.gif

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Kitagrl Posted 18 Nov 2009 , 5:40pm
post #39 of 40

Ahhh for the days of sending cupcakes to school for a birthday party or bringing a cake to your neighbor without the fear of breaking the law or being sued. haha.

"Dear Teacher. Today is Johnnie's birthday. These cupcakes were made at home; however, I got a license and a million in insurance to cover the two dozen cupcakes enclosed, as well as have included a list of ingredients. They are nut free, soy free, dairy free, egg free, gluten free, and sugar free to be sure to please everyone in your class...except the ones who like sweet cupcakes...they should be put into a remedial nutrition class anyway.

PS: The decoration on top, a red furry monster from mars, should not be confused in any way with a character called "Elmo" from Sesame Street, due to strict copyright laws. Thanks."

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__Jamie__ Posted 18 Nov 2009 , 5:48pm
post #40 of 40
Quote:
Originally Posted by Kitagrl

Ahhh for the days of sending cupcakes to school for a birthday party or bringing a cake to your neighbor without the fear of breaking the law or being sued. haha.

"Dear Teacher. Today is Johnnie's birthday. These cupcakes were made at home; however, I got a license and a million in insurance to cover the two dozen cupcakes enclosed, as well as have included a list of ingredients. They are nut free, soy free, dairy free, egg free, gluten free, and sugar free to be sure to please everyone in your class...except the ones who like sweet cupcakes...they should be put into a remedial nutrition class anyway.

PS: The decoration on top, a red furry monster from mars, should not be confused in any way with a character called "Elmo" from Sesame Street, due to strict copyright laws. Thanks."




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