I just got off the phone with our local department of health and they have shared that I am allowed to have a home bakery business without a license if I do not advertise and I sell only to friends, family and acquaitances. I have a complete second kitchen in my home already and therfore it would not cost me anything to start selling what I am currently giving away. If I do this are there any pitfalls I should be aware of???

What state are you in?

don't forget to check with your local county/city if you can have a home business too.

I'm in iowa and I can bake from home, however the last city I lived in I could have a business, but i could NOT have any customers come to my home. They do it to help restrict traffic in residential areas. This may also be the case if you live in a condo or a home association area.

Out of curiosity, what state are you in?

Also, did you ask them what consituted as Advertising? Sometimes even having a business card is considered advertising. Just want to make sure you don't get in trouble for having a business card (as these are the best things to hand out to get people to you)

What state are you in? It just seems a little odd that you are only allowed to sell to family and friends. I say that because how would anyone know who you are friends with?

You can sell only to friends, family, and acquaintances? That seems like a silly rule because ANYBODY could be an acquaintance.

Well, I guess since she can't advertise the only way she'll get business will be thru word-of-mouth hence the acquaintance. lol

best of luck to you cricket!

I'd consider getting liability insurance in case someone sues you. Also, look into making your business an LLC, so if someone does sue your business, your home is not jeopardized.

I live in South Carolina and in a rural area (outside of city limits). Dept of Health said that I can not do business cards or flyers, etc. People will have to come to me. He did suggest that I contact my local city and make sure there are not any issues he is unaware of, but did not think there was anything.

I am just curious about insurance, taxes, etc. How does that work if I don't have a business license. There goes the idea about buying products at a wholesale price. Oh, well can't have everything.

prterrell
Posted: Thu May 20, 2010 5:34 am Post subject:

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I'd consider getting liability insurance in case someone sues you. Also, look into making your business an LLC, so if someone does sue your business, your home is not jeopardized.


Can you set up a business and get liability insurance without a business license??

I'd call them back and get more information, like if there is an number of cakes a year that you can do.

It sounds like they don't mind if you do a few cakes for people you know, but don't want you selling to the general public, hence the no advertising.

TexasSugar - I did ask the question regarding if there was a limit on the number of cakes and I do and they said "no". He directed me to the regulations on the website and they would consider this a "weekend baker".

I live in South Carolina and in a rural area (outside of city limits).

Cricket;
You might check into an umbrella policy. Check with your home insurance company, an umbrella policy will cover you in case something happens that is not covered under normal home owners policy and someone sues you up to an amount of your choosing. (I don't think I explained that well!) Your insurance company will explain it in detail.

Could you be confusing a "business license" with a Health Department license? Those would come from two separate entities. You can certainly set yourself up as a business with the state and qualify for wholesale accounts from suppliers.

Leah, I was confusing the two. I sent about 2 hours last night reading through all the post on here and realized my mistake. Have some checking to do on insurance and business licenses today.