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The unrealistic client - Page 5

post #61 of 157
K8memphos is exactly right. I know it's hard. There is a huge leap from friends & family to a business. It's hard to raise the capital.

Just remember that each & every time you do something illegal, you run the risk of the consequences.

Thankfully, cottage food laws have narrowed the leap. There is no way I would be able to afford a full brick & mortar bakery in my town without first being able to operate under the cottage food law. In ever so grateful.

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It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

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www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
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post #62 of 157
Quote:
Originally Posted by klhoward42 View Post

So my options are starting a business, which I am not able to do, or stop selling my cakes?

Why are you not able to start a business?
post #63 of 157
Quote:
Originally Posted by klhoward42 View Post

Your professional definition works "on paper" but not in real life! Thanks for the help and understanding you have been truly professional , you actually sound insecure and worried about a little SAHM decorator in the middle of nowhere Georgia!!!

Whoa there...Nobody's afraid of little SAHMs, I'm a little SAHM who runs a legal business out of her home. You can be a SAHM and follow the laws, the two aren't mutually exclusive. It sounds like there's a cottage food law in Georgia now, so you should look into that and get legal. I got a business license before I sold any cakes, so it isn't something that you have to do illegally at all.

post #64 of 157
Quote:
Originally Posted by costumeczar View Post

Whoa there...Nobody's afraid of little SAHMs, I'm a little SAHM who runs a legal business out of her home. You can be a SAHM and follow the laws, the two aren't mutually exclusive. It sounds like there's a cottage food law in Georgia now, so you should look into that and get legal. I got a business license before I sold any cakes, so it isn't something that you have to do illegally at all.

Kara or Jason:

 

If your state has a cottage food law, do you still need a business license? Or does it depend on the state? I am under Texas CFL but in what I have read I haven't seen a requirement for a business license but maybe I'm just not looking in the right place. I am not selling right now.

post #65 of 157
In most areas the city or county govt will require a business license if you are selling anything. This is completely separate from the health dept inspection or cottage food laws. Luckily getting a business license is probably the easiest part of the process, it usually costs in the $50-100 range per year.

Contact your city licensing dept (or county if you are on unincorporated land) to find out the requirements in your area.
post #66 of 157

I am a homeschooling mother of 2, who also helps run my husband's body shop business! I only make 2-3 cakes a month, mostly to family and friends. I know how much time and work it takes to run a small business and I dont have time. I use my cakes to make a little money and to give me a creative outlet! I don't have time to do anymore than what I am doing and the logistics behind a "business" isn't worth it for the little bit I do!

post #67 of 157
If you want to keep things low volume there really isn't that much in the way of additional logistics, especially with a cottage food law. If you spend a few hours doing some market research and get a business license and GA cottage food license ($100/year) then use that information to set realistic prices, you will not only be legal but you will also make more money for the same amount of work. Plus you won't be harming the rest of the businesses in the market.

Situations like yours are one of the main reasons so many people have worked (and continue to work) to get cottage food laws passed: to make it easier for people to legally run food businesses from home.
Edited by jason_kraft - 2/3/13 at 5:59pm
post #68 of 157
Quote:
Originally Posted by ibeeflower View Post

Kara or Jason:

 

If your state has a cottage food law, do you still need a business license? Or does it depend on the state? I am under Texas CFL but in what I have read I haven't seen a requirement for a business license but maybe I'm just not looking in the right place. I am not selling right now.

In Virginia they didn't have the cottage food law until a couple of years ago, but before that you could operate from a home kitchen as long as you were only doing cakes and no catering. If you were doing any kind of catering you had to have a separate commercial kitchen. I got licensed and inspected under the old laws, so when they added the option of the cottage food law I didn't want to give that up. They still give you the option of having a health inspection every year, so the inspector comes to my house and pokes around.

 

Personally, I think it's valuable to have an inspection for a few reasons.  When the inspector comes out I spend a good amount of time talking to him about any changes in the laws since I last talked to him, and you can learn a lot about what's up from them. It's also a good selling point for your clients, because having an inspection certificate is a good thing in most people's eyes. If you have the option to do either cottage food or have an inspection I'd do the inspection route any time. I was lucky that Virginia gave me the option to begin with.

post #69 of 157

A lot of people seem to confuse the definition of a business as selling something to others and the notion of a business being a full blown operation with a shop and employees etc. If you're selling cakes to make a little extra cash, you're operating a business whether its legal or not. The GA cottage food law thankfully makes it very easy for you to continue doing what you are doing and do it legally. If you're only doing 2-3 cakes a month the paperwork would certainly be minimal. 

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post #70 of 157

Jason,

 

I was not aware of needing a business license but I will look into this especially since I am developing a business plan and would like to factor a cost like a business license fee into my overhead.

 

Kara,

I don't think Texas gives the option to do inspection instead of CFL. I do see the benefit of having inspection because it can give some peace of mind and make the business seem more legit. I don't want to be under the CFL to be honest. Texas has come a long way, but there are some changes that we are hoping for. If those changes go through CFL would be more optimal for me.

post #71 of 157
You always have the option of getting a health inspection by using a separate commercial kitchen that's either built on your property or rented at a different site, even if there is a CFL.
post #72 of 157
I don't understand the confusion about not needing a business license. Is it really not required in some cities? Nevermind what's being sold or what cottage law you're operating under, if you're collecting money in exchange for goods, the city will want their cut of it.
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post #73 of 157
Quote:
Originally Posted by jason_kraft View Post

You always have the option of getting a health inspection by using a separate commercial kitchen that's either built on your property or rented at a different site, even if there is a CFL.

I haven't been able to find a commercial kitchen in my area that I could.rent. I do have space for one to be built in front of my home, and I do live in an area that has been zoned for commercial use. 

post #74 of 157
Quote:
Originally Posted by AZCouture View Post

I don't understand the confusion about not needing a business license. Is it really not required in some cities? Nevermind what's being sold or what cottage law you're operating under, if you're collecting money in exchange for goods, the city will want their cut of it.
I've heard of some cities that require a business license only for certain types of businesses, and some cities waive license fees below specific income thresholds. So usually you will need a license, but in some areas you may not.
post #75 of 157
Huh. Can't imagine many cities have budgets to allow for any non taxable businesses, but I don't doubt your statement.
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