I've been making and decorating cakes from home for a while now and some of my friends and family have asked me to make cakes for them.
They are paying me to make these cakes, but only recently have I started to charge people for them.
I want to start my own cake decorating business in the future but for now I'm only doing a cake a month roughly (maybe less).
I want to start a facebook page or website to promote my cakes to get started on my business, I just want to know if I have to get any licences, approvals or register my business name and get an ABN at the moment. I want to register my name but I need to get an ABN for it... Like I don't want to do it full time at the moment (I'm studying so it'll just be the odd cake here and there) but I'll be charging them for my cakes.
I'm a little confused as how to go about it all, and will take any help I can get.
Thanks in advance :)
Check out the ATO website. Just google ' Is it a business or a hobby ' Plenty of info there for you.
Good luck :)
Hi sweetcheekss, I'm in NSW and know that I have to register with the council to have my kitchen inspected and submit a development plan with the council before being able to accept any money for my cakes. I'm a hobby baker and currently make cakes as gifts for family and friends. If you are accepting money for your cakes, then effectively you are a business - even when you're only accepting money to cover your costs. I found it tough to register my business name because you needed an ABN number but couldn't get an ABN number without a registered business name or evidence that you are acting like a business (renting equipment, have an invoice, leasing premises etc). This is something I'd like to do down the track but found it all too much to do at the moment. Will stick to gifting cakes in the mean time. Best of luck, would love to hear how you go :)
Yeah I had a read through some sites and I got to the same conclusion I just wanted to know for sure, cos government sites aren't very user friendly :(
I went to get an ABN but like you said I don't qualify cos I have no evidence of acting as a business so it's very confusing to distinguish where I belong on their website...
On a side note, they really like making it hard to have a small business, the registration alone per year is more than I pay for my car!!!
But anyway, I'll get into contact with them and see what they say!
Agreed, sifting through the govt information can leave you feeling confused and with a headache afterwards! The council next door to me requires you have two kitchens; thankfully mine does not. Another option is to bake and decorate in an already registered kitchen ie. local church, RSL, bowling club. They may be able to rent out kitchen space and the oven for a couple of hours. Your local council may have a list of registered kitchens they can provide you. I know it seems like a lot of hassle, especially when you only make one cake per month, but you can never be too careful with food and people and the laws are strict. The Australian Cake Decorating Network also offer a cake decorators insurance in case things go pear shaped. Lots to consider, hope it all works out :)