Could you please give me your advice on what I need to do next? So far I've been steadily building an inventory of baking and decorating supplies. I have a small, but very loyal list of clients. And I have secured part-time use of a commercial kitchen. What else do I need to do to legally sell cakes? Do I have to have any special insurance, permits, etc? Or does the commercial kitchen I use cover those type of things? What would be your advice on how to move forward?
I really appreciate your help. My husband lost his job a few months ago and started a new job not to long ago. It was a great career move and we are definitely blessed and thankful for it, but we are going to have to adjust to a major pay cut for a year or two while he "moves up the ladder." With five kids, that will be challenging, so if I could make some extra cash here and there from cakes, it would help at least pay for some groceries (and allow me to do something I truly enjoy!)
Thanks in advance!
You probably need to get licensed as a busienss, so that depends on how your state handles it. You'll probably need to collect sales tax, so that requires a business license and/or a federal tax ID. Again, depends on how your state handles it.
Your homeowners insurance company will probably be able to write an additional policy for your business. Don't assume that the insurance at the place you're using to bake will cover you. I just rented office space to do consultations, and my insurance provider needed to add the space onto my insurance. My insurance covers personal injury in case someone slips and falls while they have an appointment with me, and also product insurance, in case someone says they got sick from a cake.
You'll also need to look into how to pay income taxes on your business income. You should be able to find books and pamphlets about that from the IRS.
Am I missing anything?
Shouldn't the permits and all the legality be the first things to take care of ?
Thanks so much for all the advice costumeczar. I'll call my insurance agent today to get more information. It just seems like a long, complicated process for me to sell a couple of cakes every week. But I want to make sure I do it the legal and right way