I'm a hobby baker, since last year I've been baking birthday cakes for my family. That's at least one every month, which doesn't bother me at all because I enjoy it plus I get to practice decorating them. But is it okay if I start charging them, maybe just for ingredients?

AFrom a legal perspective, the risk is minimal if you only charge family members and do not advertise, hand out business cards, create a business web site, or mention selling cakes on your personal web site or FB page.

Oh I see, thanks for your reply!
 

i don't even see a legal risk at all myself

no more than babysitting for them or cut their hair or help paint the living room or pick up them up on the side of the road if their car breaks down or any other thing families do for each other

jmo

AThe biggest risk I could see would be if a well-meaning family member or a guest at the family member's event starts spreading the word about OP's cakes and encouraging others to buy them. If word reaches the health dept (which is unlikely) they could issue a C&D.

Of course OP would also need to record the cash from family members as hobby income on their tax return, failure to do this could cause penalties in the (again unlikely) case of an audit.

i personally don't consider it risky to receive a cease & desist if i neither commence nor proceed in the first place

i see no risk--ultimately there's no loss to me

but there is loss to me if you have to buy all the ingredients for a family member's party and don't get reimbursed

it's another of those personal decisions

I don't charge for immediate family members....but when my MIL insists and shoves a $20 in my pocket....I smile, give her a kiss, and graciously say "Thank You!"   As a hobby baker, excepting tokens from family ....is not against any law ....(in my book).

I will keep doing them for free,like I said, it doean't bother me, but hey if they want to give me at least 10 bucks I won't say no! Haha

I agree with Debbie. Immediate family members are free. Now if they want you to do a cake for their best friend or their classmate, etc, then I would charge them at least the ingredients. It all depends on where you are in your process. For me, I am doing cakes for free for family, but I decide on the design so that I can learn something new with each cake. I will do cakes for cost for co-workers or people I know assuming I can fit it in my schedule ( baking is just a hobby) and they know that I am doing it for cost because I want cakes for my portfolio. I also let them know that when I decide that I am ready to start making cakes for profit (assuming the Louisiana Cottage Food Law passes in April), my prices will be in line with area standards, although co-workers will likely always receive a set discount.

Thank you all  for your replies!

Oh my God!  I am amazed at all the dangerous scenarios presented here if the OP decides to take $20 from her family for expenses!  Just deliver the cake in an unmarked vehicle at midnight by your family's back door to be sure no one sees you! 

To the OP...this hobby...as I'm sure you're aware...can get quite expensive.  If someone in your family wants you do a cake for them then just tell them yes and give them a grocery list of what you'll need.  No money changes hands, but less expense for you.  Then you can go buy cake toys with the money you've saved.  Win-win. 

A

A

Definitely, this is a must! You can never be to careful! And always keep an eye out for a tail.... :D

You people are being ridiculous.  Don't you know 'Big Brother is watching you ALL THE TIME'.

Let's list everything:

-cake ingredients-butter, flour, sugar, eggs, milk, salt, extracts, confectioners sugar, butter or shortening, colors

-box and board

-electricity, gas, and water

-time and labor

Is all of that free.

Happy Baking and Decorating,

Chef Angie

Of course it sounds completely ridiculous, but the majority of the time it is friends and relatives that call to report illegal bakers. 

I actually checked with my local county's health dept and they said I can charge whatever I like to friends and family, I just can't advertise or sell to the general public without getting licensed/inspected. If you think you'd be comfortable asking for reimbursement then it's worth calling your local office just to ask, rather than being extra cautious and either footing the bill yourself or turning down cakes because you don't want to pay for all the supplies. 

AThanks to the OP for posting and all of the replies. This was a very helpful topic.

A

yea thats true.. she was most likely just saying it to scare me or something, but its still hurtful.... 

Exactly my point!

Sissys Goodies, I am so sorry that you have family that would treat you like that!!  This sounds like something my family would do to me too. People can be so cruel sometimes.  

Luckily, I have never charged anybody for anything when I make them cakes. I actually quit doing cakes except for grandkids and a few of my neighbor's kids because it got to be too much for me especially when you would have 6-8 cakes all within one week of each other. Now, I just stick with doing the kid's cakes. 

If I were you I would total up all my costs: butter, fondant, cake board, flour..etc. and charge them for the ingredients at the very least. Otherwise you may get resentful pretty quick..not to mention often it can just be an expectation that you always provide the cake.

This thread is 2 years old...

Lol manddi, now I feel dumb! I wonder why it got resurrected to the front page?   

http://thebizofbaking.com/working-for-free/

This is a super good article from the business of baking website on this subject. 

I now know this thread is old..but that article is amazing; it gets straight to the heart of the issue. We should be handing out a copy of it to all new cakers.