You are comparing apples to oranges and besides that you can do whatever you please with those tags once you purchase the product. Please tell me that you didn't think it was illegal to remove those?
Diane
ummmm.... Diane *whispers* I was a JOKE!
I agree with Risque on this topic. I am in Texas and it was hard and cost me money to get a legal shop. I have to charge higher prices than home bakers to pay for my legal business......if you are selling from home its illegal and you shouldn't do it. The laws are there for a reason.
I am not legial, but I did call my Health Dept. They said you can make and sell out of you home w/out a permit, as long as you do not pay for any advertising. Free ads are fine. Each Stae, each county in each state is dirrerent! Find out the laws and make the decision based on what works for you.
In my county, I have to have a completly seporate kitchen, I do not have that kind of cash. It is just something I do for fun, being a stay at home mom....
Sometimes I wonder where these states come up with these laws. Just because you don't advertise doesn't mean that your kitchen is sanitary enough to sell cakes out of. As far as you just selling to people you know, that is still competing with the bakeries that are licensed. It doesn't matter if it is people you know or complete strangers.
Please do not take this to mean I think your kitchen is not sanitary. I don't want to be chewed out for saying that. It's just that the law doesn't make sense. JMHO
Diane
so far, for family and friends, I have been giving them a shopping list - having them buy what I need to make their cakes. Then, if they want to tip me, or buy me an extra bag of powdered sugar, that's cool. I would love to get licensed. I am searching for a kitchen. I live in a SMALL town. Michigan does not have a Cottage industry either. But I'm working on getting legal. Until I am, I am basically making things for free...but I am NOT paying for the ingredients...just my time is free right now. Good thing I LOVE to bake!! I understand how frustrating it would be if I jump through the hoops to get legal...and someone moved in and started baking and undercutting me. That would bug me. I wouldn't turn them in though. I'm just not like that. I can't wait for the day I can go to bridal shows etc. But that day will have to wait...at least until I find a kitchen to bake out of. I don't happen to have the extra $60,000 or so to re-model the 40 year old home I live in.
I will be doing 3 wedding cakes as gifts this summer and fall. I know my name will start getting out there...so I'd better get going on the licensing so I can start to take some orders!!
Diane....you are in Missouri too and here they are really strict. I know where you are coming from and when the health dept., manager talked with me....he said people don't realize that doing this the legal way is for OUR PROTECTION more than anything. If our kitchen is not the cleanest or you have animals in your house....lots of other things going on in ones home....then someone has a problem with your cake, they can sue the pants off you. And when I checked the insurance thing out....many wouldn't touch it with a 10 foot pole to insure even my seperate kitchen. I did finally find one that would and it still runs allot more but worth the coverage.
Diane's Cakery
you may take away business as you say, but then is it wrong for me to cook dinner for my friends, because then i am taking away business from the local restaurants?
I don't know. Are you charging them for cooking their dinner? I think this was a petty statement.
Diane
I must be crazy, I don't think the law is there to help the liscensed places out,,,,it is there to suposedly help the consumers.
And, if you are making dinner for friends you aren't charging them a penny, if you start saying hey "for 5 dollars I'll make you dinner for you to take home tonight" then yes, it is competeing with the local restaurants.
I think if you make cakes for friends and family at COST, then you aren't breaking the law, but the minute you make money from it, you are a professional and should be treated as such. If the government treats you like a professional who doesn't have the proper liscensing you should have, then so be it. JMHO. Obviously some states are more concerned than others.
Well in CA ANYONE who makes cakes at home and gets money for them is breaking the law. But as many have said, if you just do a few cakes for friends and family it is not worth the extra cost.
I know I would never want to have my own shop. Then it would turn my hobby into a job and I don't want to get tired of doing cakes or feel like I "have to" do them.
Most of the time I will give my cakes as my gift. But then there are times where I can not afford to do that. But I will let the person pay me whatever they want. I don't ask for any money. So it's more of a thank you gift.
I know some of you are saying it does not matter I'm breaking the law. Ok I guess I could be. But I would ask YOU do you ever speed? That is breaking the law. You don't do it all the time, you know it's breaking the law but at times you do it. Just hope you don't get caught.
As far as taking business away from the "legal" people. Give me a break. I make so few cakes and the people I make them for wouldn't be going to one of those bakeries anyway even if I didn't make it. They would just make it themselves or skip having a cake.
I'm in Wisconsin, where it is illegal to bake or "sell edible products without a commercial kitchen." However, the closest Walmart is 18 miles away, the grocery store in town doesn't sell cakes, and there is only one person who does cakes and no one even knows who it is so I can talk to her to see if she is legal. The Village Hall said I can do "onesies and twosies, as long as you don't have professional equipment, then you'd need a license and tax ID."
Illegal in the state, overlooked by the village, but I won't sell cakes. Why? Because I know there are people who would turn me in. My cakes are ALWAYS gifts, or bartered for babysitting, etc. Although getting known for my cakes, I won't put myself in a position to get in trouble. Instead, I am talking with other artists in the Art Guild and seeing what can be done about getting edible art allowed in the state. Even though gumpaste is nasty to eat, it is edible, so gumpaste flowers or figurines alone would be enough to be illegal, even if done as an art project.
I would say look for a licensed kitchen to use, and get your license. There is a commercial kitchen I will be looking into about 20 miles away, when I am ready to start selling. It's just not worth being illegal.
It is just not worth the risk if you are not legal. Without a license and business insurance you are putting your personal assets at stake. Is it worth losing your home and personal savings over a $40 cake? These days, people dont need much of a reason to sue. Likely, someone will not get sick from something you bake but the possibility is still out there. The risk is too great for me, so for now it's free cake and cookies for all my friends!
I am thrilled to find out that I am "legal" in MA - or at least I will be once I contact my Health Inspector to come check out my kitchen. 
Back in the 80's as a teenager I sold cakes, before anyone really thought about any of this - I can tell you I doubt I made more than my Mom spent for the supplies 
But my brother's played hockey and I made cakes...
I did not sell again for quite some time, and usually it was just for famil/friends paying for ingredients. But lately with the kids in school I have been getting requests from more people and now even a few people I do not even know. No more than a few a month, if that, but I was starting to get worried. I do it as a hobby because I do have another job, but if it is possible to "support my habit" by charging a decent amount that would be great. Very relieved that I can continue to support my habit and have fun doing this.
I do not advertise, and I don't ever see me running a full time kitchen - I guess I am too scared to try that, but I like making my little cakes.
I have to say that this is becoming funny.
A license doesn't make an area sanitary in or out of the home. It just means the day the inspector came you had your act together because you new he was coming.
Believe me I understand the fact that the cost is great for those of you who are fortunate enough to have a space outside of your home, an additional kitchen added to your home to meet code, or are licensed in your area per law, three different levels of cost.
I have been investigating that very same thing and I am trying to figure out how I am going to work a job I have been on for 10 years and open my cafe. Something has got to pay a bill on a steady basis.
It sounds a lot easier than it is, and if many of you think back to your start, you will remember how hard it is.
And yes, some of us, myself included, who only has to worry about labeling due to our Cottage Law, have no blame to hold for different laws in different states, counties, etc. And say everybody (in a perfect world) is licensed from their homes or whatever the law states, you are still so-called losing business. And what is the complaint going to be.
I have been watching this thread in various states of explanation over the last several months and this might (I say might because I do not recall commenting before) be the first time I have just gotten fed up with this holier than thou attitude. How soon we forget from which we came.
I just dont know what else to say and I am sorry if I have an attitude. But if your customers are going to be your customers, and they like what you do, and how you do it, cost is not going to keep them from coming to you.
We tend to pay for what we like as a population in general.
IMVHO
I have to say that this is becoming funny.
A license doesn't make an area sanitary in or out of the home. It just means the day the inspector came you had your act together because you new he was coming.
It sounds a lot easier than it is, and if many of you think back to your start, you will remember how hard it is.
And yes, some of us, myself included, who only has to worry about labeling due to our Cottage Law, have no blame to hold for different laws in different states, counties, etc. And say everybody (in a perfect world) is licensed from their homes or whatever the law states, you are still so-called losing business. And what is the complaint going to be.
I have just gotten fed up with this holier than thou attitude. How soon we forget from which we came.
We tend to pay for what we like as a population in general.
IMVHO
Amen to that. A few of those here who do have their own shops or are licensed got very nasty after they were legal. We all start somewhere, and my guess is that even those who are licensed or legal started out just the opposite. The attitudes about this from those few does get very old. Customers will by from who they want, legal or not. I'm just lucky to be here in Ohio where I can bake from home without any problems. Ohio has only had the cottage rules since 2001 though the way I understand it.
I have to say that this is becoming funny.
A license doesn't make an area sanitary in or out of the home. It just means the day the inspector came you had your act together because you new he was coming.
Believe me I understand the fact that the cost is great for those of you who are fortunate enough to have a space outside of your home, an additional kitchen added to your home to meet code, or are licensed in your area per law, three different levels of cost.
I have been investigating that very same thing and I am trying to figure out how I am going to work a job I have been on for 10 years and open my cafe. Something has got to pay a bill on a steady basis.
It sounds a lot easier than it is, and if many of you think back to your start, you will remember how hard it is.
And yes, some of us, myself included, who only has to worry about labeling due to our Cottage Law, have no blame to hold for different laws in different states, counties, etc. And say everybody (in a perfect world) is licensed from their homes or whatever the law states, you are still so-called losing business. And what is the complaint going to be.
I have been watching this thread in various states of explanation over the last several months and this might (I say might because I do not recall commenting before) be the first time I have just gotten fed up with this holier than thou attitude. How soon we forget from which we came.
I just dont know what else to say and I am sorry if I have an attitude. But if your customers are going to be your customers, and they like what you do, and how you do it, cost is not going to keep them from coming to you.
We tend to pay for what we like as a population in general.
IMVHO
I never respond to these threads either because there is usually a tense undertone but I to peek from under my rock to applaud you. 
I was just going to type about how funny this topic is.....why is it now that people who may have started out as homebakers are legal now are having such a problem with "illega"l bakers. OMG give me a break....all of this is for the Government to make even more money off of the people and if you are only doing a few cakes a month why add more bills to yourself if you don't have to.
Like Ladivacrj said if they like your work and want their party/reception to be a hit they will pay the money to you not matter who may charge less.
Perhaps its important to remember, however, that many people who began as home bakers started their businesses before inspection laws were in place. I don't think (don't crucify for personal opinion) that there is a blanket answer to any of this., not to mention the fact that each state has its own rules and regulations. I'm a hobby baker. I don't sell, don't want to. If you don't like the laws in your state, research why they exist. If that doesn't change your mind, lobby to change the law.
This started off with a good dialogue. I hope it stays that way.
AMEN!!! This is one of the first times I have even added my thoughts to a forum in here....and mainly I did because I know how it feels to be on both ends of the rope here. I had my business without a license for 20 years.....no problems with anyone at all...but when rules started changing with our state, county....I knew I had to set it up the legal way if I wanted to continue to have an income. I applaude all cake decorators out there who start out small and go bigger or do it for a little income.....because they are trying to go with a dream. I just had to share info that might help some who are not doing it legal yet....because we live in a totally different mind frame now days where people, even some who you thought were friends or family.....will take you to the bank if they have a problem. It's not like it used to be. My best advice to anyone doing any cakes....legal or not.....do your homework.....and be safe and careful.
Diane's Cakery
This started off with a good dialogue. I hope it stays that way.
I have yet to see a post on this subject stay good. Once there is a difference of opinion everyone gets snippy. That's when you can hear the lock coming.
Diane
I say MAKE THOSE CAKES!! I have been on both sides of the fence. Yes I used to do cakes "illegally", but now I don't, I was more concerned about getting sued from a customer than being fined by the government, but now I have insurance for that. If you are comfortable doing what you are doing. I hope to save enough money to open a storefront, and I am in the process of doing that also, because I am outgrowing my kitchen. I have 10 cakes to get out this week, and the kitchen is FULL!
I so understand both sides of this "debated" coin and trust me the debate will never end. I so want to be legal and have looked into buying a place (cafe/bakery) that would have meant huge debt and time. I've looked into building a kitchen on my property - not enough land! I've looked into renting a egal church kitchen but at $20 for the first 3 hours and another $20 per hour after that, I'd have to charge alot more than people are willing to pay for a birthday cake of which I only do about 2 a month. I am now looking into leasing a space and getting a small business loan but here is the the catch 22 with this option: DH says you don't make enough cakes to pay the bills so how are you going to be able to lease??? To which I say, "I don't make cakes for other than friends and family because the HD frowns on it and I can't advertise or market my skills or my yummy cakes, so therefore I don't make more $$ than covering my costs. I DON'T KNOW IF I COULD PAY THE BILLS required when having my own little shop and that alone scares me out of trying. For those of you that moved from illegal to legal, how did you do it?? I don't even know if I want the STRESS of a full-time business, but I do WANT to make the 2-4 a month I do now LEGALLY and I'm going batty trying to figure out how I could do it!!
I don't think that you can say things about us "legals" starting somewhere. I can honestly say I sold ONE cake before being legal, and that was because I didn't know any better.
So really, saying that we all start somewhere, is not really true. I started making cakes as gifts, and then I built my shop. It is possible to start and have a successful business without selling cakes "illegally" first. 
I replied to this thread back on page 4....
And SugarBean, I called the bank and they do not give loans (unsecured) for businesses. I have 10 acres to build a shop on and in order to get the funds to do so, I have to have an equity line of credit on my house and use the land as collateral. How can I justify doing all this and not do enough cakes to pay the monthly note? Power bill, advertising, etc.? I've made $125 this year doing cakes.
My question is how many orders a month did you have prior to building your shop? Did you have steady clients that wanted your cakes? How did you get the orders?
99.9% of the cakes I do are "freebies" because I like it or want to try something new that I've seen here or somewhere else - not as an advertising ploy/intent.
mjs....I had to do just what you said....had to get an equity loan on our house....to build my shop in our attached garage. Our house is our collateral. It's a loan sorta like a charge card too....I have a friend who is a loan officer at a local bank....he went to bat for me and was able to get the right loan for me. I made sure my orders were pretty full....before I jumped into the whole loan thing. I know if you are only selling and making $125 for the whole year...you won't be able to justify to get a loan. Right now....I make about 8 to 15 regular cakes per week on top of about 6 wedding cakes a month. My overhead is low though.....no electric bill to pay since it's in with my regular electric with the house, water too. My major costs are supplies, a yellow pages ad, and my seperate phone bill and insurance....and of course my loan payment. But I am making the money too! I am so busy that I don't advertise other than the phone book. I can't....I have to turn down orders as it is.
Diane's Cakery
Maybe to put a better twist on this own thing we should be asking the people like Risque and Sugarbean. When you started a real shop:
How did you just jump out there?
Where did the money come from?
How did you drum up enough business to pay the bills?
How much debt (estimate) do I have to look forward to before I turn a profit?
Where you working another full time job and quit to persue this?
How did you keep your house from belonging to the bank?
And any other questions, that we may have. We may be looking at this the entirely wrong way.
Help us figure it out.
I started in 1976 when my daughter was 1 also. My DH was overseas with the Navy and the allotment checks were not enough. I sold cakes for about a year and the extra money really helped. Then I had one kid behind the other and the other, also with all the moving we did I just stopped. I just started again about 6 months ago. It's not like riding a bike. LOL I'm back in Ca. and now we can't bake from home. My daughter and I hobby bake but we cook for family and friends and only ask for supply money. I guess I sound naive but is that illegal? We had an agreement with a restaurant owner to use her place at night when closed but her pipes froze, busted and during repairs she sold the place- too much trouble. So, I guess we're out again. So close. I'm trying to get legal but it's a struggle Iguess I'll just keep going the way I have been if it's okay. If not, I don't know what I'll do. I have a 10 yo and I can't even bake and take to the school anymore. Anything taken into the school has to be packaged or a receipt showing where it was bought.
Maybe to put a better twist on this own thing we should be asking the people like Risque and Sugarbean. When you started a real shop:
How did you just out there?
I put decals on my van, that brings in ALOT of business, I went to a wedding show and handed out 700 cards, I tell everyone and there dog I have a business, if I notice a "bride" in the grocery store, I ask if they have their cake yet.
Where did the money come from?
I got a Line of Credit from the bank to build a second kitchen in my home. I co-signed with my dad, however he has NO say in how I spend the money, and we had agreement I would pay the loan off as fast as I could.We purposely bought our home to make this work, so the plumbing and power were already in the right places. In my LC I also got enough to pay for all my bills for the 1st year, as well as some MAJOR advertising, wedding shows etc, newspaper adds, etc.
How did you drum up enough business to pay the bills?
See above.
How much dept (estimate) do I have to look forward to before I turn a profit?
I was in debt over $5000 and that was enough to do the reno, by all my supplies, and pay for the first year of advertising. I expect to start to turn a profit 1/2 way through wedding season. I currently have 25 weddings booked as of the end of Feb.
Where you working another full time job and quit to persue this?
I was a full time mom.
How did you keep your house from belonging to the bank?
I co-signed with someone who had better credit than me.
Any other questions??
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