Calling Va "legal" Home-Based Bakers
Business By formerbuckeye Updated 2 Jun 2013 , 8:58pm by fishykat6
Thanks, Sassy...as you said, "It's going to take you a bit of time to go through the whole thing and gather all the info they want"...that's exactly why I want to get my packet sooner rather than later. I am also not impressed with the way I was told "it's not exactly a high priority"...they may indeed be nice people, but that's not good customer service.
If they're not located in Richmond, why is there a Richmond address listed under the "contact us" link?
Oh I know - trust me I've been in your shoes...lol Don't take it as it came across in post. I was just trying to get ya to calm down a bit don't stress yourself out over this - you've got plenty of that in the future..haha
They are actually located down in VA Beach. I think there is a satellite office up here but the office that actually houses the paperwork and such is located down there. Personally the whole state is screwy!
I called yesterday to the Dept. of Taxation and was told that technically we could go either way with the 2.5% vs 5% tax thingy. The law is to generalized and it all depends on the auditor basically if they consider us a bakery or catering. I explained to her that the bulletin stated bakeries are to charge 2.5% and caterer's 5% and that technically we aren't caterer's in the state of VA because they don't allow home based caterering when you get your license. She agreed that it is not clear and that I should submit for a ruling which I'm going to do. When I eventually get that back I will post the findings for everyone in VA here so maybe we can all have a clearer understanding on this whole thing.
Gotta love politics 
They also have a lot to do recently with all of the foodborne illness junk...I talked to one girl who said that she was going to scream if I said "tomato" to her, ha ha!
To pm on this site just click on the button at the bottom of a post that was written by the person you want to write to. I'm going to send you the guy's email, gateaugirl...
WOW am i glad i found this!!!! My husband, daughter and I will be relocating to Fairfax County within the next few months (hubbi will b a fairfax county sherrif). I just called the dept of agric. and the lady said she would email me the packet. that way i can everything ready to go (paperwork wise) before i get there and then all i have to worry about is the physical stuff!!!!!
Don't forget Sassy, this is a Commonwealth-not a State as I was constantly told when I first moved here in 1992.
If I hear that one more time! And actually there is a difference from common wealth and regular states. This is also a right to work state. The tax and employee laws are set up different from states that aren't. Imagine how shocked I was coming from a state where laws favor the employees not the employers! And now back to our regularly scheduled program.
Wow, this thread is great! I was just wondering if anything has changed in the past few months/years since we've heard any updates, especially in the tax situation!
I'm moving to Fairfax in the next few weeks and am hoping to get my baking business started up there (I've been doing great here in Ohio).
Thanks everyone!
Kristy
This thread is helpful on so many levels...mainly in the sense that I've got about 50 questions swirling in my head that I'd never have thought of. I started looking into getting "legal" with the idea of doing cakes/baked goods for neighbors. Now it's totally snowballed into a business venture out of my home. What was very simple has become quite complicated.
Can we talk logistics a little? How do most of you operate your business day to day? Do you deliver most cakes? Do you charge a delivery fee? If so, how much?
I'm in Culpeper county, where do you purchase boxes?
Does anyone else do other baked goods besides cakes and cookies?
I've been looking at insurance and $1 million seems to be the industry minimum. Is that what most people have?
The business side of things is not my forte. It's all very overwhelming.
Thanks for any advice!
Ok - I'm getting inspected at the end of this week to become "legal" in Central Virginia. I have a millions questions swirling through my head. Here are a couple of them:
1) Did you have to bake a small cake while you were being inspected? Can't remember where I heard this...
2) Do you sanitize your bakeware/utensils after you used them or before you're going to use them?
3) If you have a two basin sink, you wash and rinse in one side and have the sanitizer in the other side, correct?
I know these sound like stupid questions. Think I'm just stressing a little.
Thanks!
SusieGayle
Hello ladies
I am in process of getting licensed and inspected in RiChmond
my questions are
is after I file for tax ID. how do I need to deal with that and how much do you charge for tax? and do you include this in the receipt ?
after I schedule a time with the inspector and pass "are we done at this point or they will visit for inspection randomly during the year?"
what is the tax form I need to file for LLC?
thanks
Hello ladies
I am in process of getting licensed and inspected in RiChmond
my questions are
is after I file for tax ID. how do I need to deal with that and how much do you charge for tax? and do you include this in the receipt ?
after I schedule a time with the inspector and pass "are we done at this point or they will visit for inspection randomly during the year?"
what is the tax form I need to file for LLC?
thanks
When you file for the LLC you'd go down to the business office at the County building (I think it's on Parham Rd?). After you fill out the LLC info you walk over to the tax office where they'll give you a tax ID number, then you go back to the business office and they finish your paperwork. It's all in the same building complex, so you do it at the same time.
As far as sales tax goes, I collect 5%, because the tax on prepared food that will be eaten off-premise is 5%, not the lower one. I'm not taking any chances on having someone fine me and collect back taxes for X number of years just because I chose to believe that the lower rate applies to us!
Once you have your tax ID number you can apply for a tax exemption for your ingredients, but you have to do that store-by-store using your business license and tax ID number. Yoy won't have to pay sales tax on your ingredients or anything else that goes into the production and delivery of the cakes (boards, boxes, anything disposable that goes with the cake when it gets delivered and doesn't come back to you, basically). You still have to pay it on magazines, equipment, etc.
When you collect the sales tax you'll either have to pay it monthly or quarterly depending on how much you're making, they'll tell you how often. I itemize it on the contract, then keep it separate in my ledgers. I pay it once a month to the state, and you can do that online if you set up your account online with the Dept of taxation.
The first inspection will be the most thorough, and they'll ask you the most questions then. After that the inspector comes once a year and they mainly want to make sure that you haven't changed anything in your setup (no additional rooms used, etc.)
Hello ladies
I am in process of getting licensed and inspected in RiChmond
my questions are
is after I file for tax ID. how do I need to deal with that and how much do you charge for tax? and do you include this in the receipt ?
after I schedule a time with the inspector and pass "are we done at this point or they will visit for inspection randomly during the year?"
what is the tax form I need to file for LLC?
thanks
When you file for the LLC you'd go down to the business office at the County building (I think it's on Parham Rd?). After you fill out the LLC info you walk over to the tax office where they'll give you a tax ID number, then you go back to the business office and they finish your paperwork. It's all in the same building complex, so you do it at the same time.
As far as sales tax goes, I collect 5%, because the tax on prepared food that will be eaten off-premise is 5%, not the lower one. I'm not taking any chances on having someone fine me and collect back taxes for X number of years just because I chose to believe that the lower rate applies to us!
Once you have your tax ID number you can apply for a tax exemption for your ingredients, but you have to do that store-by-store using your business license and tax ID number. Yoy won't have to pay sales tax on your ingredients or anything else that goes into the production and delivery of the cakes (boards, boxes, anything disposable that goes with the cake when it gets delivered and doesn't come back to you, basically). You still have to pay it on magazines, equipment, etc.
When you collect the sales tax you'll either have to pay it monthly or quarterly depending on how much you're making, they'll tell you how often. I itemize it on the contract, then keep it separate in my ledgers. I pay it once a month to the state, and you can do that online if you set up your account online with the Dept of taxation.
The first inspection will be the most thorough, and they'll ask you the most questions then. After that the inspector comes once a year and they mainly want to make sure that you haven't changed anything in your setup (no additional rooms used, etc.)
Just a small correction if I may <sorry>. If you are filing for the LLC the State Corporation Commission office is downtown Richmond, 1300 East Main Street, Richmond, VA 23219. Now from there how you get your business license depends on where you are. If you are in Richmond City, your business license will come from Downtown Richmond: Division of license, Assessment and Tax Audit, 900 E. Broad St., Room 103, Richmond, VA 23219. If you are Henrico County then the complex refered to by costumeczar is what you need. This next piece I am not 100% sure of but it is well worth you looking into. If you plan to get an inspection and you can get it before you apply for the business license, it will save you a trip. Because they may or may not sign off on your license for a home bakery if you don't have the inspection yet. With the "guess so" rules for home bakeries in Virginia now, you might meet that type of resistance or you may breeze right through (flip a coin - with Henrico Co. being the toughest of the two). I'm not sure at all about Chesterfield or Hanover. In the end you'll be fine, its just that some officials are easier to work with than others.
Hello ladies
I am in process of getting licensed and inspected in RiChmond
my questions are
is after I file for tax ID. how do I need to deal with that and how much do you charge for tax? and do you include this in the receipt ?
after I schedule a time with the inspector and pass "are we done at this point or they will visit for inspection randomly during the year?"
what is the tax form I need to file for LLC?
thanks
The LLC form you are looking for is Form LLC1011:
http://www.scc.virginia.gov/clk/dom_llc.aspx
even if I don't live in the Richmond area. Yes, No Good Lazy Bum is right (and I enjoy typing that name, by the way, how often do you get to refer to someone like that). I had the LLC papers filed through legalzoom dot com then I took them to Parham Rd to get the new business license. I was remembering it wrong, something I tend to do a lot. Too much paperwork tends to meld together in my head 
Oooh marking this thread. It was exactly what I needed to hear. Yea, there are all those legal docs out there but am loving reading your experiences with it (and happy to hear about other Fairfax County bakers!).
Are we allowed to have pets in the home at all in VA? I am in Prince William County and I was led to believe that I cannot have pets in my home at all but I could not get clear answers. I read through this whole post (I love this thread!) and I remember seeing that pets are allowed but not in the area while baking-is this for all of VA? I already have the packet and maybe I am missing something 
Any help would be greatly appreciated 
Okay, so I called the VA Dept of Food and Dairy and what you all previously stated is still true. I know it seems as though I didn't believe you all but I just wanted to make sure nothing has changed since the thread began (I did not want to have my high hopes deflated!) I am so happy!! I am eternally grateful to everyone here on CC!
I hope it is not rude to ask this but is the paperwork process costly?
It's not costly at all, it's just a pain in the neck. You have to write everything out step by step, do the floorplans, etc. But you only have to do it once at the beginning for your first inspection, and each year after that they just check to see if you have anything to add or change on the papers that you turned in.
This post was started quite a few years ago, but it has helped me immensely! I read the entire thing and feel so much more comfortable with this whole process! I only started making cakes about four months ago and am quickly looking to become "legal." Thank you for all of your help!
Hello Ladies, I live in Loudoun county and got my permit last June. For me it was pretty easy process but time consuming. Here is my step-by-step:
1. File LLC.
2. Obtain EIN (employer ind.number)
3. Register Business Name
4. Obtain local business number
5. Obtain Home occupation permit
6. Obtain Virginia state Taxpayer ID Number
7. Obtain Business insurance
8. Open a business checking account.
From this list I didn`t open business checking account yet. Planing to do it tomorow.
For inspection I send them my kitchen plan, all my recipes. I marked shelf in the fridge and cabinets for cake business. I have double sink and do not have pets.
Hope it helps :)
WOW, what a great thread. Truly informative and helpful! I am an aspiring home baker myself. Just trying to figure out how to maybe make some money out of the passion I have for cake design. And in order to "make it legal" I am quite a bit confused. Firstly I have a cat in my home. No, she doesn't get all over counters and what not-but cats do have fur. Does anyone know if this nixes my legal home-based bakery dreams? I'm in the richmond area and was really only planning referral based business. I'm small potatoes, do you think I need the license? Thanks a lot for your help!
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