Hi! I currently make my cakes as a side business to my regular full time job. I have been considering leaving my full time job and doing cakes full time. So my question is - is best/recommended to get licensed as a business when doing this, or just stay the way that I am.
I hope that makes sense.
Thanks so much.
AIt's not even a question of whether it is best to get licensed or not. You have to.
AYou need to get familiar with the laws of your state and county. That will tell you what is necessary for your home based business
........? asked:......best/recommended to get licensed as a business or just stay the way that I am......
......answer........You need to get familiar with the laws of your state and county. That will tell you what is necessary for your home based business...........
Definitely take this ^^^^^^ advice.
The problems/ you can run into are not worth the heartache of loosing your home and maybe going to jail!
If you're already selling cakes as a side business you might be in violation of state and local regulations. You need to call the health department in your area and find out whether you're even allowed to sell food from your home kitchen. Some states require an inspection, some have cottage food laws, and some don't allow it at all. On top of that you might have to collect and report sales tax to the state that you're in, and the IRS will be interested in any unreported income you've made. Better call in the morning to see what you need to do to be legal.