Let's see... 8 pages in on one of the hottest topic threads - AGAIN - and the OP (who has a total of 1 post) is nowhere to be found.
Feels a little like we've been punk'd. Again. Anyone else think that someone just likes to stir the pot a little?
Haha, probably so! 
No the OP never responed, some one defending illegal selling responed
No the OP never responed, some one defending illegal selling responed
I thought she did...oh well, whatever. I stand by my responses regardless of whether a dink was trying to mess with us.
How else do you know if you can be successful at this business if you don't test the waters. You don't decide over night that I like making cakes and I am going to open a shop. If I am not making money at it on the side then I definately won't be trying to invest all of my time and money opening a professional shop. I don't think anyone is trying to step on anyone's toes here, but it is what it is. Just because people say they like your cakes doesn't me you can be successful at it. I would think most people started out selling cakes to friends and family and word of mouth before they became who they are. I know if someone asks me to make a cake for them I am charging them for my time and ingredients. I don't by any means think that it is stealing, people have all types of talents and they don't have to be licensed to do them on the side. I think this all boils down to the laws, why is this illegal. If I know how to sew well, that's extra income for my family.
Agree with you. I was spending around $200 a month giving cakes and cupcakes away. Now I just ask people to cover the cost of the cake (and only make things for very close family and a few very close friends).
I'm having the 2nd kitchen in my dad's house inspected next month so I can become "legal", though.
I have always wondered how so many people on Etsy get away with selling homemade food items on the site.
My husband is a forensic accountant, the tax laws regarding this kind of thing aren't so black and white.
To determine whether your baking is a hobby or a business ask yourself a few things...
Does your livelihood depend on the income made (if any) from this activity?
Do you make more money than what you spend on this activity?
If you are charging cost and not making any money, it's considered a hobby.
But, if your kitchen isn't legal, then you should probably stick to only baking for very close family and friends. We live in a sue happy society, people are always looking to point the finger at someone else.
Honestly, I have a hard time speaking down to someone who may be breaking the law, when I break the law almost every day...How many of you people speed? And by speed I mean go even one mile an hour over the speed limit. Law is law right?
Caking is one of my hobbies and I've been following this thread with great interest. This morning I went to church and, afterward, was pulled aside by a parishioner whose granddaughter is getting married in July. The parishioner asked if I'd please make the wedding cake.
OMG.
I'm not licensed, I'm not legal, I have a husband and family whose way of life be put at risk if someone were to get sick from my cake. I'm happily surprised and secretly pleased that she asked, and I am certainly capable of making the wedding cake, but I'm worried about all the what-if's. I think I'll call her tomorrow and say thanks but no thanks.
However, I think I did manage to talk her out of the bride's original plan: "My granddaughter just wants a simple two-tier for her and her groom, and sheet cakes for the guests." I told her that that might be a great cost-cutting idea, but the guests would look at the two types of cakes and think that two-tier equals Fancy Bakery and the sheet cakes equal Costco. I pointed out that her guests would feel slighted if they were forced to eat the sheet cakes while watching the happy couple eat the Fancy Cake.
The more I think about it, the more I think I'll have to turn this one down. I just hope they don't end up getting those sheet cakes!
Honestly, I have a hard time speaking down to someone who may be breaking the law, when I break the law almost every day...How many of you people speed? And by speed I mean go even one mile an hour over the speed limit. Law is law right?
IMO the bigger issue is how much unnecessary risk you expose yourself to by breaking the law. Running an illegal food business is more akin to driving without car insurance and a driver's license than speeding. After all, you keep your car clean and drive safely, so why do you need a piece of paper from the government telling you that you can drive on public roads? 
The answer to the OP's question "How legal should I be?" is...
100%.
BRAVO!!!!!!!!! 
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