I know the list of available places (individuals home, farmers market etc), but the Texas Cottage Food law also says that it allows for you to deliver your baked goods, so does that means i could collect payment upon delivery at the home of the person who is purchasing?
any insight would be much appreciated!
Always collect payment BEFORE the item is due. Otherwise you will get stiffed. Search the forums for how to word your contract; you will want one of those to cover your butt and give you a way to back out if they don't pay X amount by X date. Stick to your contract/agreement and hold your customers to it.
As for selling your stuff: http://texascottagefoodlaw.com/Frequently-Asked-Questions
See Q11, it says you can sell out of your home. Just check with your apartment rules/homeowner's insurance etc, as they may prohibit operating a business out of your home.
Quoting:You can sell foods on the allowed list at your home, a farmer’s market, a farm stand, or a municipal, county, or nonprofit fair, festival, or event. To rephrase, the fair, festival, or event must be sponsored by a municipality (city), county, or a non-profit organization. The law does not allow for sales at privately sponsored public events such as craft fairs or flea markets.
Oh, and if you go the route of collecting at their door, make sure you do not hand over the cake until you have all the money. I've gotten stiffed as a pizza driver cause I did that once. She went on our "no pizza for you" list.
Thanks for the contract idea, I hadn't even thought of that. I do web design, so plan on putting up a website once I have more pictures and things put together, which I plan on having a contact page where you would have to put down a non refundable deposit. And yes, I have read that website and many others thoroughly, but I can't seem to find a direct answer for technically "selling" on their property by collecting money from them upon delivery (since their home is not my house, or a registered non profit organization)
i would like to reinforce what crafty said -- have final payments made online well before delivery -- for efficiency and for safety's sake -- you don't want to possibly be targeted for receiving payment for anything not even if it was in your own home -- way too much crazy out there
If you require that everything is paid before your oven is turned on you won't need to worry about the language about "selling" and how that technically works out.
I would love to be able to receive full payments on the website, but the cottage law does not allow for payments to be made online, only a deposit. breaking the law and loosing my umbrella of protection that is the cottage food law does not seem worth it to me, I'd rather be stiffed a few times. Plus, a deposit would at least cover the cost of materials.
This is all good advice though, working in customer service, I've encountered many crazies and people out to get whatever they can out of a company for free, awful really.
I will also make sure and document thoroughly conversations and transactions that take place. In part for my own reasons and whatever tax type things I may encounter, but also to help defend against someone whose goal is to make a dollar off me. I think a iPhone card swiper and receipts will help with this as well.
no but like paypal has this thing you can text someone your screen name (y'know whatever name you register with them) and so i'd be texting someone this:
and they just click on that to send you the $510 -- pretty sure they don't need a paypal account -- doesn't have to be through your website but electronically --
i guess i don't know exactly what the definition of 'payments online' is -- i mean the iphone card swiper is with your phone so the paypal thing might work? just not through your website -- just over your phone?
but however you can mitigate carrying change and taking payments in person will be the best for you but no not to break any rules of course
@-K8memphis That is awesome, I definitely have to look into that when I get home. I will do some research as to if it is considered "online" and probably update here when I find out.
i hope it works and thanks for updating when you find out
I got a great response in my messages from user Nancylou, and figured this could help others who may be wondering about the same sort of thing (she said it was not letting her post her comment, but keep in mind, this is not a legal response as situations may vary)
Here is what she said:
"I had the same question of how to accept payment when I was setting up my Cottage Food Cakery a couple of years ago. I can't remember if I talked to somebody at the Department of Revenue, or the Department of Agriculture, but they said it would be fine to accept payments from Paypal as long as the person receiving the cake lives in the same state. The reason for the wording is to ensure that sales don't cross state lines, because then they would then be subject to Federal Regulations. If there is ever any question, it can easily be resolved by proving each customer has a Texas address.
Some other options can be to have them mail a check, arrange to have them drop off a check/cash at your home, you can have them do a bank transfer, or meet them somewhere in town to receive payment. The important thing, as K8Memphis said, is to get the final payment a minimum of 2 weeks before the cake is due."
Yep, cottage food laws don't allow for sales across state lines. That is pretty much what the internet sales thing prevents. When in doubt, check with your local department of agriculture, they are usually happy to answer any questions (at least mine was).
I wanted to add, that even though I don't have a business, I love reading posts about people who are starting up! I wanted to start up a year ago (cookies, cinnamon rolls, etc), but it will be a long time because of some things that came up (mostly first time mom stuff, ha ha).
I was wondering who would be best to call, so thank you!