Pros And Cons Of Starting A Licensed Cake Business

Business By lovetofrost Updated 4 Apr 2008 , 7:37pm by yummymummy

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cookieman Posted 25 Mar 2008 , 2:27pm
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The trick was though, that if someone complained to them, they were required by law to "investigate" and at that point they have "cause" and could come to my home.




Here's something to keep in mind: Sometimes people get busted for baking out of their homes not because a customer complains about them, but because an established bakery (HD approved, licensed, etc.) in the area gets wind of the competition and puts a bug in the ear of the right person. It happens.

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ladyonzlake Posted 25 Mar 2008 , 2:31pm
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Here in WA state to see if a business name is taken you can go to https://fortress.wa.gov/dol/dolprod/bpdLicenseQuery/

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justme50 Posted 25 Mar 2008 , 2:33pm
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Originally Posted by cookieman

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The trick was though, that if someone complained to them, they were required by law to "investigate" and at that point they have "cause" and could come to my home.



Here's something to keep in mind: Sometimes people get busted for baking out of their homes not because a customer complains about them, but because an established bakery (HD approved, licensed, etc.) in the area gets wind of the competition and puts a bug in the ear of the right person. It happens.




Oh absolutely!

Here the established brick and mortar bakeries intentionally hunt out unlicensed bakers and turn them in on a regular basis. They do not want the competition and will do whatever they can to stop them.

The baking industry here is the main reason we have such stringent laws regarding home bakeries. They're a powerful group politically and they aren't about to make it easy on anyone who they see as competition.

I'd be much more worried about another bakery or licensed home baker turning me in than I would a customer. Most of my customers couldn't care less if I was licensed or not!

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mommyle Posted 25 Mar 2008 , 2:50pm
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Well, I have 2 little ones, and I am working out of my home under the radar because I want to be at home with them, not somewhere else and leaving the baby in day-care. I'm only doing one or two a month right now anyway.
The other thing is that we have a family pet (shitzu) who is 6 years old, and I'm not about to put down my dog for a couple of cakes. Besides, he's an indoor dog, and doesn't jump up on the counter (hahaha), and I think My DH makes more of a mess than either of my kids AND my dog. He's unbelievable. If I ever get rid of him I'll be fine!!!!!!!

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ctackett Posted 25 Mar 2008 , 2:51pm
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I am in Ohio and and as all of you know, Ohio is more lenient b/c we have a lot of Amish communities. I am doing a couple of cake a week, just by word of mouth and I have been making donations to some organizations. I called our Health Dept in the county I live in. They know nothing. They referred me to the Department of Agriculture site which has a list of rules. Our HD head is a moron.

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Chef_Stef Posted 25 Mar 2008 , 4:08pm
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On the subject of checking your name choice, I think when I registered online with my state and the neighboring state, it asked me to put in my name, and then it searched that as part of the whole process (just statewide, though).

I ran into something AFTER that, though, which has been sort of funny and just a bit of a nuisance: There is a lady who has a shop about 30 minutes from me in the nearest big city (my main market), whose personal first name is the exact same as mine, with the same unusual spelling of that name...her shop has her name in it, as mine does, but our biz names are COMPLETELY unalike, as in: Cakes by Jane vs. Jane's Isn't it Sweet. *I* have a hard time confusing these two names; however, customers frequently call me and thinking I'm HER. I'm like, DUH--you just called a neighboring state area code to reach me, ma'am, why would you think you've reach her?? Or they call me or contact me from MY website (she doesn't have one), which has my name clearly at the top of each page, and still think I'm her! icon_confused.gif To her credit, I'm grateful that she must do great work, because they always call me and say, "You did my daughter's wedding, and it was SO good..." and I have to say, "Um, that wasn't me." Obviously if I know they think they're calling her, I send them back to her.

So be careful with using your first name, even if your biz name is totally different than a competitor's, or you could be forever explaining that you're the "other" Jane.

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lovetofrost Posted 27 Mar 2008 , 3:26pm
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I'm soooooo excited!! I decided to go with everyones advice and jump into the cake decorating business world. I finally got in touch with the health inspector. She came out the next day (today) and passed me and I went down the road to the business license dept and paid $71.65 and got my business license. I am officially owner of Celebration Cakes and Confections. Thanks so much for all your advice and support. Now it is on to advertising and practice. I do have another question. How do you keep up and organize all your expenses and taxes. Thanks again.

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indydebi Posted 27 Mar 2008 , 3:54pm
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Originally Posted by lovetofrost

How do you keep up and organize all your expenses and taxes. Thanks again.



Keep up? icon_confused.gif Organize? icon_eek.gif

Why do you think my accountant is always on my case about getting numbers to him? icon_lol.gif

Organize! Hmmmmm! Now THAT would be something to try! icon_lol.gificon_lol.gif

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step0nmi Posted 28 Mar 2008 , 3:20pm
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good for you lovetofrost! I am actually wondering if getting a kitchen is going to be beneficial for me? I just don't know! I think I may be better off trying to find a catering company that doesn't do cakes yet! Because I certainly don't have the advantage of going out and advertising IF i have to make myself a whole new business....I guess I am not sure what to do yet!

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Mommaskip Posted 4 Apr 2008 , 4:42pm
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does anyone have any information on Pennsylvania. I live in Pa and Im highly interested if anyone else has information to share if they have home bakeries or started businesses...whatever. Thanks.

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yummymummy Posted 4 Apr 2008 , 5:22pm
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Congrats lovetofrost!

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I also have been working under the radar...it really sucks! As far as I know, dept. of Agriculture require CT home bakers to have smooth ceilings. I live in an apartment where they will not allow me to change that. So, I'm afraid to even bother having my kitchen inspected beacuse of that. I have a feeling they would walk in and walk right back out. I can't believe my ceilings matter that much! I don't bake on my ceilings! icon_mad.gif

I was thinking of renting kitchen space from a caterer down the street, but I'm only doing 2-3 cakes a month right now. Would it really be worth my while? How do you go about putting that into your cake prices so it all works out in the end?

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indydebi Posted 4 Apr 2008 , 5:27pm
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Originally Posted by yummymummy

I can't believe my ceilings matter that much! I don't bake on my ceilings! icon_mad.gif




That kind of stuff is very frustrating, but there's actually a logic to it. Most rules pertain to being clean and being EASY to clean. Smooth ceilings don't have little bumps and crevices that can hold dust, dirt, and cobwebs, which can drift down and fall into your foods.

I not only have to have smooth walls, but the walls must be of a special material that makes them easy to clean; repels water (prevents mold) and grease doesn't soak into them (easy to clean, prevents mold).

There really is a logic.

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tastyart Posted 4 Apr 2008 , 6:00pm
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I'm only selling about 4-5 cakes a year. Right now I just consider it a hobby. Is that legal. Where is the cut off to say it has to be licensed?

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indydebi Posted 4 Apr 2008 , 6:13pm
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In general ........ because laws in states may differ ........

If you sell ONE cake, if you receive compensation for goods or service, you're a business.

I'm not aware of any HD or other licensing laws that say you can "kinda" sell "some" cakes without having to follow the rules.

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tastyart Posted 4 Apr 2008 , 6:25pm
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As far as taxes go, you can earn money on a "hobby". You just can't claim deductions without proving that you have a business. You also can't have a business and take a loss more that 3 out of 5 years. Seems like a catch 22 between local and federal gov't.

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lovetofrost Posted 4 Apr 2008 , 7:30pm
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In Georgia, my health inspector made some exceptions such as not having to have the 3 compartment sink. It didn't cost me anything for them to come out even if I hadn't have started my business legally. I know that in Georgia it is illegal to sell any kind of food product without an inspection and license. Technically they are too busy to keep up with all the home bakery business and as long as you don't advertise it isn't probably going to get you into a huge deal of trouble. I had feelings going both ways, but my gut and the way I was raised said to do things the right and honest way and I wouldn't have that burden of having to hide it.

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yummymummy Posted 4 Apr 2008 , 7:37pm
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I so agree w/ you lovestofrost. I just decided to go into business about 3 months ago and it wasn't until after that I realized my states rules. Nothing was happening w/ my business, so I had resorted to just doing it for friends and family when all at once (literally) I got 5 or 6 orders! Now I'm committed to them. I think after these though, I'm going to stop taking orders until I can figure out a way to get licensed some how. icon_cry.gif

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