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post #76 of 112
Thread Starter 
Quote:
Originally Posted by -K8memphis View Post

i mean what is she bringing to the table that an employee could not do (if you even needed an employee at this point.)

you can buy accounting software and cake stuff software like cake boss.-go through your learning curve with that stuff and all you basically gotta do is plug in numbers etc.

even just an accounting service would work for you if you wanted. i had a quickbooks pro help me set up the books for one of my businesses and then she was there when I had questions.

just a thought.

since she seems to be being considered as a partner--why? put her on the short list for part time help when the need arises

i don't thin k you need a liquid plot twist at this time but that's just my observation.

Good idea as well, never really thought about that. Can you message me with more information. Id just hate to put all of my trust in someone that could potentially screw me over. You never know with people nowa days. I mean she's wonderful why can't she just be my assistant and not partner? Any advice for that anyone?
post #77 of 112
Thread Starter 
I put my photo up lol!
post #78 of 112
You need to do what is best for you.We are all undividuals and there is so much great advice. K8 has given some great advice too.It would help with exactly what you need without any ownership being turned over.I myself use Quicken for the financial.

It is all awesome advice , question is what fits you best?
post #79 of 112
I may have missed it, but do you have a business license? In Alabama, you have to have a business license, FEIN, as well as other city and county licensing. If you don't, you are operating illegally and can (and probably eventually will!) go to jail for tax fraud since you are not paying state and city tax. Also, if you don't have the proper licensing, by handing out business cards and advertising anywhere (even Facebook) is illegal. You might could get away with Facebook if you plainly stated that your cakes are free since you can't legally charge even one penny.

My advice is if you're not already doing things by the book, stop selling cakes whether you have an inspected church kitchen or not and get legal.
post #80 of 112
Thread Starter 
Quote:
Originally Posted by tykesmommy View Post

I may have missed it, but do you have a business license? In Alabama, you have to have a business license, FEIN, as well as other city and county licensing. If you don't, you are operating illegally and can (and probably eventually will!) go to jail for tax fraud since you are not paying state and city tax. Also, if you don't have the proper licensing, by handing out business cards and advertising anywhere (even Facebook) is illegal. You might could get away with Facebook if you plainly stated that your cakes are free since you can't legally charge even one penny.
My advice is if you're not already doing things by the book, stop selling cakes whether you have an inspected church kitchen or not and get legal.

Actually yes I do have one as of three weeks ago if that.. I have been making them for almost free for years i made NO profit and they ONLY paid for ingredients. I just need to take a few classes for. marketing and such as stated by other members. Trust me I know all of the rules and do not plan on doing anything illegal.
post #81 of 112
Thread Starter 
Quote:
Originally Posted by Izzy Sweet View Post

You need to do what is best for you.We are all undividuals and there is so much great advice. K8 has given some great advice too.It would help with exactly what you need without any ownership being turned over.I myself use Quicken for the financial.
It is all awesome advice , question is what fits you best?

For me I honestly like the ideal of having a assistant. That way I do not have to sweat the worries of partner ship. She has agreed to being my assistant not with baking just marketing and such she's wonderful so far! icon_smile.gif
post #82 of 112
Quote:
Originally Posted by CuteCakes1234 View Post

Your last statement that is what I am afraid of, someone I do not know "turning" on me. She already knows more then she should, nothing horrible.
If she is a sociopath and plans on trashing you with lies, it doesn't really matter what you tell her. Talking to her associates should give you a pretty accurate picture of who she is and how far you can trust her.
post #83 of 112
Quote:
Originally Posted by -K8memphis View Post

i mean what is she bringing to the table that an employee could not do (if you even needed an employee at this point.)
If all she's contributing is the accounting I would agree with you. In my experience the most time-consuming task at startup was business planning and a strategy for procurement and marketing, while on an ongoing basis sales and customer service tend to take up the most time. If she is willing to do all that as a part-time employee (and she agrees to defer her pay until you get off the ground) she is either very generous or not as savvy as you think.
post #84 of 112
Quote:
Originally Posted by CuteCakes1234 View Post

Actually yes I do have one as of three weeks ago if that.. I have been making them for almost free for years i made NO profit and they ONLY paid for ingredients. I just need to take a few classes for. marketing and such as stated by other members. Trust me I know all of the rules and do not plan on doing anything illegal.

Even someone paying for only ingredients means it isn't free. Just making sure you knew!
post #85 of 112
Thread Starter 
Quote:
Originally Posted by tykesmommy View Post

Even someone paying for only ingredients means it isn't free. Just making sure you knew!

Yes I sure do know thanks.
25-50.00 for a three tier cake. I'm not sure of how much jail time I can do for that? Hmm lol! Well I am licensed now what's done is done.. I didn't make a simple penny, its more like someone loaning me a couple bucks.. Also the fact that I only made maybe 10 cakes a year. icon_smile.gif
post #86 of 112
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

If all she's contributing is the accounting I would agree with you. In my experience the most time-consuming task at startup was business planning and a strategy for procurement and marketing, while on an ongoing basis sales and customer service tend to take up the most time. If she is willing to do all that as a part-time employee (and she agrees to defer her pay until you get off the ground) she is either very generous or not as savvy as you think.


We talked about pay, she wants me to "pay" her in cupcakes lol! That works for me, but I also told her I will buy all of my chocolate from her (Lindt) so for now its kind of a fair triad. Let's say if she where to bring in five clients for me. I would for certain give her a small percentage until I can afford to pay her part time. Make sense? Good idea? If she is indeed a nut basket then it will be a learning lesson. But for now I will put my trust in her she really seems like a good person but you never know nowa days right!
post #87 of 112
Quote:
Originally Posted by CuteCakes1234 View Post

We talked about pay, she wants me to "pay" her in cupcakes lol! That works for me, but I also told her I will buy all of my chocolate from her (Lindt) so for now its kind of a fair triad. Let's say if she where to bring in five clients for me. I would for certain give her a small percentage until I can afford to pay her part time. Make sense? Good idea? If she is indeed a nut basket then it will be a learning lesson. But for now I will put my trust in her she really seems like a good person but you never know nowa days right!
You really need to work out how she will be compensated in writing, up front, before she starts helping you. If she wants to be paid in cupcakes that's great, but if she expects to be your exclusive provider of chocolate that should be in writing as well. If her Lindt business is MLM that could be a warning sign, in fact she might just be doing this to gain another MLM customer and the hard sell to become a distributor under her could be next.

Remember that this person is creating critical components of your business, and if she has no stake in your business she could leave at any time and take her knowledge with her. To me that is the riskiest part of this deal, but it can be alleviated by having her teach you what she's doing (assuming you have the inclination and the time available to learn).
Edited by jason_kraft - 1/1/13 at 7:04pm
post #88 of 112
Quote:
Originally Posted by CuteCakes1234 View Post

Yes I sure do know thanks.
25-50.00 for a three tier cake. I'm not sure of how much jail time I can do for that? Hmm lol! Well I am licensed now what's done is done.. I didn't make a simple penny, its more like someone loaning me a couple bucks.. Also the fact that I only made maybe 10 cakes a year. icon_smile.gif
You may have to record this income on your tax return. Hopefully you kept receipts of your expenses so the net income will be zero, but if you don't have the records of your expenses you may owe income tax (there are also rules limiting hobby expenses based on your AGI so this may also add to your tax bill). This type of income is usually considered "hobby" income (1040 line 21). The IRS doesn't mess around so you should talk to your accountant to get the final word and not rely on the advice of strangers on the internet.

You won't go to jail for this, but if you are audited you could be fined if you failed to report this income.
Edited by jason_kraft - 1/1/13 at 7:41pm
post #89 of 112
A single mother selling 10 cakes a year isn't going to owe income tax unless she makes at least $14 an hour at her day job, and that is for one kid. In any state.
Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
post #90 of 112
Quote:
Originally Posted by Annabakescakes View Post

A single mother selling 10 cakes a year isn't going to owe income tax unless she makes at least $14 an hour at her day job, and that is for one kid. In any state.

 

yes and op did not gain income

 

truly she lost income on the cake projects

 

in my mind she did not sell the cakes either

 

she willingly spun straw (ingredient money) into gold (pretty cakes) for friends & family 

 

that's not income to me nor to the irs

 

for example if she painted 10 houses for friends and they bought the paint there is no income to report there

 

maybe report her to a psychologist to get her head examined for painting for free but no just kidding icon_biggrin.gif

 

on one hand we are encouraging her to be professional and foresee not only the ins and outs but also the extremes of a new venture while trying to hold her  accountable for trying to gain some experience by working for free

 

how's a girl 'sposed ta get ahead

one baker's never ever do is the next baker's 'i swear by this'
one baker's never ever do is the next baker's 'i swear by this'
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