Thank you ladies,
I'm asking questions to all of you, who have been there, I'm not making my own definition of what a "business" is.
I made my nieces 15th b-day cake(free). A friend who's a single parent really wanted to have a party for his daughter's 15th too. I offered to make the cake -for free. He said it was going to be something small. I figured 3 tiers or so.
Later the girls mom came into the preparations, the cake she asked for 450-500 people! The girl wanted a specific cake stand, I found it on the web for $1500+. I told my friend I couldn't buy that, they couldn't either. So I told him I 'd buy somehting similar(I invested $300+), but since it wasn't in my plan when I offered to give them the cake I asked if he could help me with $100. I gave him a receipt and I kept every receipt of what I spent even $1 or $2 at the $ store for my records and, if i get licensed for tax purposes(this was in Aug.) My out of pocket total $450+.
The cake was 11 tiers! did I sell this cake? You can say yes for $100. And like you say dkelly about not making profit for your first 3 years. When I show all my receipts for what I spent, obviously no profit.
I didn't plan for this situation when I offered to help. No! (my offer was more than a year ago, I needed to keep my word) from reading some of the other forum topics, other bakers licensed or not run into something unexpected.
Every baker I'm sure thinks, considers, even dreams of their own business on top of a cloud, does it mean we're ready?
Here's where these questions come in, and reality, that there's much more than just baking and decorating.
Thanks for your replies.