Opening A Cupcake Business

Business By TMinEQ Updated 25 Jan 2012 , 11:30am by MimiFix

TMinEQ Posted 24 Jan 2012 , 10:12pm
post #1 of 5

Hi,
I am in the beginning stages of opening a home based cupcake business. I would love some input on either opening as a sole proprietor or open as a corporation. Any suggestions would be appreciated!
Thanks
T.

4 replies
jason_kraft Posted 24 Jan 2012 , 11:35pm
post #2 of 5

If you are in the US, which state are you in? Some states allow home-based bakeries, and some don't.

If you can legally have a home-based business I would suggest starting out as an LLC, they are taxed the same as a sole prop by default.

TMinEQ Posted 25 Jan 2012 , 3:37am
post #3 of 5

I am in NY. What is a LLC?

jason_kraft Posted 25 Jan 2012 , 4:07am
post #4 of 5

I believe in most areas of NY a home-based bakery is restricted to wholesale only, no direct to consumer sales allowed, but you can verify that with your county's health dept.

Here is some more info on an LLC, it stands for Limited Liability Company and is a way to shield your personal assets from lawsuits and other business risk:

http://www.nolo.com/legal-encyclopedia/llc-basics-30163.html

MimiFix Posted 25 Jan 2012 , 11:30am
post #5 of 5

In NY, home-based food businesses are regulated by Ag & Mkts. Only non-hazardous foods allowed, There are no restrictions for wholesale but retail venues are limited to farmers' markets, green markets, crafts fairs, and a few others. http://www.agriculture.ny.gov/FS/consumer/processor.html

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