As an at home cake decorator, you aren't legally allowed to charge for your cakes right?, but what if instead of "charging" you had a suggested "gift" amount that you accepted?? Would this still get you in trouble? I want to do things legally but I am overwhelmed trying to figure out the process to do so.
Thanks
Christy

the IRS/health department will consider you to be in business if there is an exchange of goods. you give some one a cake in exchange for : money, or supplies, or any other product. thats why having someone buy supplies for you to bake a cake is still not legal. it has to be completely free.

What becca said. "If it walks like a duck . . ."

Most definitely.. you can't even make someone a cake in exchange for them mowing your lawn. You can give them a gift after you pay them, but you can't say I'll bake you a cake if you mow my lawn.. that is a business transaction. They can't bring you supplies and you bake the cake.. it's a business transaction.. they can't buy you the pans and you make the cake.. it's all the same.

Some states make it nearly impossible to be legal without investing tens of thousands of dollars and doing it full time. Some of us can't or don't want to make that sort of commitment. I understand the reasons the laws are there- but I wish that some states (mine) were willing to inspect and license a home bakery. I can't afford to go out and build or buy a commercial kitchen (or even rent one) to do 2 cakes a month.

I guess my question would be is the income you make from 2 cakes a month really worth the risk? If I couldn't do this legally from home I wouldn't. It wouldn't be worth risking the fines.

Well, many careers are impossible to get into without investing tens - or even hundreds - of dollars.

As far as I'm aware, there is no state out there that is SO strict that you have to invest tens of thousands of dollars. MN is one of the most strict, you know what it cost me to get legal?

$77 - inspection/agri license
$160 - Food safety course and exam
$35ish - health licensed

I didn't pay a cent towards my rental kitchen till I got orders (It's hourly, as needed).

It takes money to make money, but in the grand scheme of things.. if you're not willing/able to spend the less than $300 to get yourself legal, and the time, effort, and possibly creativity to find a rental space... why should you be selling cakes?

I'm guessing that getting fined would be more expensive than the <$300 it costs to get legal.

Also, feeding the public is serious business. And with all the cases of food borne illnesses in the papers over the last year or so, the public is more aware of problems, and quicker than ever to point the finger at someone. If you do have a problem, and you are not licensed, then you might as well had over the keys to your car, your house and your bank account. Because it you get sued you have no defense. I would not be willing to put my family at that kind of risk for the income off of a couple of cakes a month.

As I understand it here (Utah) I can't be legal until I have a kitchen. Kitchens are expensive.

I have a health card- but after that there is nothing else I can do until there is a kitchen to inspect.

YOu can certainly use another commercial kitchen if you can find one to rent. Do you have any local restaurants? Perhaps your local church has a licensed kitchen you could use? There is always a way to do it right if you want to.

But even renting a kitchen is jumping in more then I want to I think. If I'm renting hourly for $20 an hour even then I'm coming out making $0. I'd have to be making more then one cake at a time- which I don't do currently.

$20 / hour is what I pay. If you want to be a *business*, then you need to look at your expenses and price yourself accordingly.

If $20/hour for a kitchen and $300 or so in fees is "jumping in" too much for you, then you really should keep it as a hobby.

I would like to be able to sell a small cake or two every week, and perhaps the occasional wedding cake, legally from my home. I strongly feel that every state should have some sort of cottage food law that provides for this, and also protects the public. Cakes and cookies are not high risk food items, as the states with cottage food laws acknowledge.

I have tried two different renting situations and found them completely unworkable, both for sanitary and time issues. The first restaurant I tried to use was filthy such as you have never seen. I came home one day and cried. The second was a rental kitchen which was cleaner than the restaurant, but not as clean as my home. I would have to get there and wash the mixer and wipe the countertops of dead bugs before I could start. Plus, cakes take time to cool and settle, and there was no way I could let a cake settle there overnight and come back and work on it the next day. I paid $10/hr to rent (a bargain, to be sure), plus $200 a year for my food purveyor's license. It was not a workable situation for one cake a week.

I don't think most people here want to "get around" the food laws. They just wish they could make food legally in their own kitchen (as you can in at least 18 states). Not everyone wants to make cakes a full time business - heck, one cake a week is barely even part time. But I would like to do it legally and be fairly compensated for my efforts.

kelleym---thats sooo true...I think a lot of us cake decorators are feeling that way--all of a sudden you have people calling you to get a acake and you cant possibly do it for free...yet you risk the ---dum-dum -dum - **FINES

I completely understand the health dept. rules and all the laws....but i agree with kelleym...


catch22 i guess.

Some states are arbitrary in their laws, and when you call even they aren't clear on the laws. From the way I understand it, in NY I can get a home exemption for my kitchen if I was selling wholesale but not 1 cake to an individual. That's right I can bring 24 muffins to my local deli to sell and it would be legal, or I can bring cupcakes to a farmstand, but if one of those customers asked me to bake them a cake I couldn't do it legally. Even if I used only non perishable fillings. I too have given up. I'd have to rent space at a very high price or open up my own bakery which I would have no idea how to do. I'd love to do it but I can't afford to lose money on every cake I make. That cost of business is just too high for me. I might as well just make them for free now. The money I'd lose on materials would be less than I would lose by renting a space.

Personally, I don't understand the whole thing. I don't want to do this as a business right now. I don't want to rent a kitchen. I don't even make many cakes at all. But, the law wants to come after me because my mom asks me to make her a cake for her Sunday School class and pay me for it? Crazy. What if she likes my lasagne and asks me to make it? She wants to pay because the ingredients are high and it takes a lot of time to make. I just make it better than she does.

Same thing goes if I pay the neighbor kid to mow my lawn. Does that mean he has to have a "business" because I pay him. Actually, I don't, my husband mows the lawn but it could be the same thing.

I know what you guys are saying about being legal, etc., but it's not a business. In my situation, it's doing a favor and someone wants to pay me for my time because they appreciate me doing this. I'll hush now.

tracy, it's what I call "crazy making". If you try to make sense of it logically, you'l go crazy!

Well, why not look at it from another point of view?

There are many of us who invested the time and money to start our *businesses*.. and incur expenses that you wouldn't believe. You know, for our *businesses*.

I have a friend who is operating in an area where she is the only licensed custom cake person (I'm not counting the grocery store), and there is an unlicensed person operating freely - even doing wedding shows! - even though it's completely illegal for her to do so.

Of course, that person is able to charge WAY less than my friend, as she has far less expense.

I don't see why any of us who have invested in our *businesses* should have to compete with illegal hobbyists. Your "building up a client base" and "being paid for a hobby" seriously devalues custom cakes in general.

Well from what I understand--you wont be getting in trouble if someone doesnt complain--I try to keep my cakes going only to friends and family--but Im getting referrals like crazy...now afraid to accept them

I know personally of at least 3 other bakers where i live who have been in biz for 10+ yrs...and have never --ever--even been asked if theyre legal.

Its all very frustrating.

Hear, hear FlowerGirl. I don't mind competing in the maretplace for business, as long as the playing field is even. Some people will like me and my cakes, others won't. :shrugs: But when I've remodeled my kitchen, purchased professional equipment, gone to certification class and paid my annual fees, which of course has to be incorporated into my pricing, and then I have to compete against a hobbyist who has virtually no fees other than ingredients, it is no longer an even playing field.

As I see it though- because of those things you can advertise, go to bridal shows and make more money. You can charge more because you have a business. As a home baker people expect a deal knowing you don't have overhead.

very true amberlicious!

so..wait a second---all of you licensed--legal cakers...none of you took caes on before you were legal? If not, then how did you get started? Hpw did you build your business? Im curious---Im not being sarcastic at all.

In my mind...it seems crazy to start a iz before you have any clients--unless you work under someone. ???

I didn't do any cakes for order before becoming legal. I just did friends bdays, dinner parties, a few wedding cakes as gifts.. really never thought to charge.

I started my business with no clients whatsoever. Why is that crazy? If you've got something good to offer and conduct yourself as a legit business, the clients will come!

Well....I'll throw my personal issue into the mix for your consideration. On top of livng in NY, which makes it difficult to be legal, if I wanted to do so, I'd have to find a rental kitchen (in a very RURAL area) that is wheelchair accessible. I'd venture to guess, not many are and then there'd likely be issues related to having a chair user in the kitchen.

Added to the financial situation, as much as I would like to be legal.....it's not happening for me any time.

Toni Ann

I do plan to "get legal" as soon as I can...

I guess the whole financial part of it---renting a place, advertising, commercial equipment.....is a little overwhelming. But then again...I never thought about renting a church kitchen...

I have heard Nevada laws are crazy in this area...Ive wanted so bad to contact a lady who owns a cake biz here in town...ad just pick her brain...but the fear of getting shot down b/c I could be her "competition" has kept me from making the call....hahaha

I used to be in NV. I was good friends with a caterer/cake decorator there who'd been doing it for years without a commercial kitchen with no problems. She'd even done events FOR THE COUNTY and was upfront with them about her status- they said it was fine as long as she filled out a W-2 so they could take out taxes.