Licensed Kitchen And More Question...

Business By psurrette Updated 24 Aug 2006 , 3:04pm by Meagan

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psurrette Posted 24 Aug 2006 , 1:27am
post #1 of 7

For people that have a home kitchen that is licensed through the state do you have a federal ID # too? My accountant discouraged me from getting a federal ID # because I dont make enough cakes to pay for the insurance, self employment taxes etc.....
This to me sounds like I am trying to scam Uncle Sam.....
Anyone out there have some insight to this? I am in MA

6 replies
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Brendansmum Posted 24 Aug 2006 , 2:51am
post #2 of 7

I just got my permit yesterday and I am going to hold off on getting my tax id. I was thinking the same thing, that it wouldn't be worth it right now. I just don't make enough cakes. I would think as long as you are claiming your extra income{on your personal tax form} it's not really cheating. If your accountant told you this maybe he/she knows something you don't? Just my opinion, and a bump! icon_smile.gif

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Pootchi Posted 24 Aug 2006 , 2:55am
post #3 of 7

I'm not fron the USA but I'm in Canada. but here you have to make $30000/year to be required a federal tax ID. But I have a company number so I can buy things from the suppliers that offers dicounts to companies, and also I can deduct more fees (like electricity and so on)

hth even though I'm from another country...

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Meagan Posted 24 Aug 2006 , 2:57am
post #4 of 7

How do I go about getting my kitchen liscenced through the state? I am in Texas, so where would I find that info? Also, does anyone know how much it costs? usaribbon.gif

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JoAnnB Posted 24 Aug 2006 , 3:36am
post #5 of 7

A federal tax id number is not required for most of us. You can have a business and file your taxes under your social security number and report your name and DBA-doing business as

If you have employees, you would be required to file payroll reports and the EIN is essential. Some people also incorporate their business (lots of extra work) and that required a federal ID number.

According to the IRS rule, If you earn $400 you must begin to pay self employment taxes. (social security and medicare) That is $400 after your business deductions.

If you try to fly under the radar, you definitely would not want to get a federal ID.

Your tax ID number can be useful in getting access to certain buying opportunities.

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JoAnnB Posted 24 Aug 2006 , 3:39am
post #6 of 7

Meagan- If you go up to the search button and do a search for texas in the cake decorating business forum, you will find earlier discussions on licensing in Texas.

here is a link to one. It looks like you cannot use your home kitchen to produce cakes for sale, in Texas.

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Meagan Posted 24 Aug 2006 , 3:04pm
post #7 of 7

Thanks so much!

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