is it sensible to consider yourself a business?

It doesnt make any sense to me to go thru the entire inspections and regulations and stuff, if I'm only making a few cakes for people I know....what level of production makes sense to be considered a professional bakery?

I know there are bakers on here that are working "under the table", and I wonder how they decided to go that route?

i was wonderin this myself

We decided it because the licensing process is not very small business friendly. Texas is really hard to get a business license in if you are a cook/caterer/baker. The outlay of money is what makes it more difficult.

I decided to do it until I can afford to build out a kitchen in my house or rent a location. Once I have enough clientele to sustain me, then I'll go into a store front.

from what I am finding out, I wuold have to have a completely separate area to do the cakes/cookies...complete new kitchen and food storage areas. Entirely separate cooling/freezing facilities.

I'm NOT currently at a level of production that even BEGINS to make that make sense....

So, are those of you working without a license or permit just counting on your customers asking if it is important to them, and going to carry on until/unless someone complains?

Do most boards just then ask you to comply from that point on?

If you are caught -- there is a fine. I've never had a customer ask or make any comments about doing it out of my home. I don't think it enters their mind that we have to be licensed to do this.

isn't it a bit nerve wracking?

do you pay taxes on your income, and if you do, doesn't that "cross reference" you to the licencing people?

You only pay taxes if you report your income. You only report your income if you are licensed.

Ok...LOL, so I'm being far too consiencious and most likely going to cost myself a heap of unnecessary money? LOL....I mean, small business doesn't even begin to describe how "low level" I am....

What about advertising?

I advertise in small local papers, school pto newsletters and I have magnetic signs on the side of my van. I am a registered dba and pay the taxes & etc. I'm just not licensed with the health department so I guess that answers the question about cross-referencing from one agency to the other. I've been in business for over a year now. Most of my business is word of mouth. I wouldn't worry about it. The licensing is more trouble than its really worth for the small business.

dba?

Designated Business Address. It's the name I'm doing business as. "Events From the Heart" I do everything from catering, cakes, decorating and anything else to help you put on your event.

gilson you must attend the DOS when we have it here in bryan/college station after the new year. i havent decided on a specific date yet but it will not be till after the new year. we are about 1 1/2 hours from you.

What is DOS?

Day of Sharing

Please let me know when. I would love to come.

great i am still working on a date at this time but i will post soon with a definite date.

I'm new to Cake Central and have enjoyed the information that I have acess to and the support and friendship you all show for one another - I certainly don't want to come across as a 'cake nazi' but....

I think whether or not you call yourself a business is a matter of not only legality but of ethics also

many of us have put the time, effort and $$$ into building a small business that we are trying to make a living from - I have gone to the hard work and expense of building a commercial kitchen and meeting all my state and city codes....I believe that if a person expects to profit from thier efforts - then they should jump the same hoops I did - while earning the income to supply my own ktchen - I 'borrowed' a kitchen and was licensed through thier location until I finished my own...

we all work very hard at what we do - and we love it - or we wouldn't be doing it - only you can answer whether or not you are conducting business in a fair and ethical manner...

I would not suggest advertising or registering a business name if you are not going to report income. Sounds a wee bit dangerous.

I think maybe you misunderstood what I said -- I am registered and I do report my income under my name that is registered. I am not licensed through the county/state because the outlay of money is more than I could afford. It would have cost close to $20,000 - $30,000 for me to set my self up in a building that would be licensed by the state/county. I don't have that kind of money. I live in a small city outside of Houston where there are not the facilities that you can rent kitchen space. We tried that with a company and it didn't work out. They wanted more rent than would be justified for the little space they would allow us. I think most of us are just waiting till we have a customer base and support to actually go out on the limb and spend the money it would take. My husband is not very supportive of my business and would not agree to fund anything until it was a profitable venture.

Whew! Glad you explained that one. I was thinking that one po'd neighbor and you'd be up the creek. 20-30K is a huge investment and I can understand why dh would be hesitant.

I don't know the laws here, but no one advertises that who is baking from home. If they did, then the State would fine them and shut them down. I don't know anyone who makes as many cakes as the people on this board. I haven't figured out how ya'll ever have time to use your kitchens to cook dinner.

I think it really depends on the laws in your state. Many states like TN allow you to sell baked goods (sweets) including cakes from your home. At what point you become an official business? IMHO it's when you're operating legally whether it be from your home or anywhere else.