Home Baking In California

Business By EnglishCakeLady Updated 20 Jan 2012 , 6:22pm by jason_kraft

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jason_kraft Posted 6 Jun 2011 , 2:14am
post #31 of 64
Quote:
Originally Posted by Gerle

Jason, I forgot to mention...if you aren't in his district, you can't send him an email...it won't accept it. I tried, so my next try will be a letter addressed to him as the Chair of the committee and see how that goes.



That's probably better than an email anyway, a phone call to his office would also work. Don't forget to send a copy to your district rep as well, you never know who will take a special interest in this issue and propose a new bill.

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TotTeefers Posted 8 Jun 2011 , 5:01pm
post #32 of 64

I'm new here, so hi! I came looking for information about starting a business because I noticed starting an LLC automatically means you must pay $800 to the FTC each year. icon_eek.gif (Holy cow that's more than I have made in the over a year I've been operating).
Anyway...I live just outside of Sacramento...about 10 minutes from the capital, actually. I would be willing to participate in this shindig as it were. I'm a single stay at home mom, this business is really all I have. I certainly can't afford to fly under the radar if I want to expand my client base, but... the cost of starting all this legally is pretty cost prohibitive right now. Things need to change.

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jason_kraft Posted 8 Jun 2011 , 5:15pm
post #33 of 64
Quote:
Originally Posted by TotTeefers

I'm new here, so hi! I came looking for information about starting a business because I noticed starting an LLC automatically means you must pay $800 to the FTC each year. icon_eek.gif (Holy cow that's more than I have made in the over a year I've been operating).



The LLC fee is actually paid to the CA secretary of state (the FTC is the Federal Trade Commission, our national consumer protection agency). If there's one thing you could skip when starting a legal business I would say it would be the LLC, you can start out as a sole prop and register the LLC later -- it's more of a pain, but at least you save the $800/year. Of course this is assuming you have liability insurance in place (~$500/year) which is your first line of defense.

Looking at startup costs and overhead it actually isn't too bad if you use a rented kitchen, if you leave out the LLC your overhead (not including the rent of course) would only be in the $1500/year range, including liability insurance, business license fees, and inspection fees. Obviously that's out of reach for a more casual business (which is what the CFL would help address) but if you are serious about the business and do 50 cakes a year that's only $30 per cake in overhead ($46 per cake with the LLC).

Also, if you take a loss with your business, you can usually pass that loss through to your income from other jobs and reduce your tax bill.

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TotTeefers Posted 8 Jun 2011 , 5:40pm
post #34 of 64

I actually make cookies and chocolates, but same difference! I haven't looked into all that stuff though icon_sad.gif I don't even quite know what's involved. I've been operating sort of casually for about a year now. I'd like to start doing farmer's markets though and they require you to carry $2 million in liability and work out of a professional kitchen. My church will rent to me for $20 an hour so that's not too bad.
Would you be willing to give me a little more info on sole prop'ship and what kinds of things I'd need to file?

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jason_kraft Posted 8 Jun 2011 , 5:47pm
post #35 of 64

Every area has different requirements, so I would recommend contacting the Sacramento SCORE office, they offer free advising for people thinking about starting a small business.

http://www.sacscore.org/

To start a sole prop you don't need to do anything extra, if you are conducting business you are automatically one. Here's some more info:

http://www.inc.com/guides/2010/10/how-to-start-a-sole-proprietorship.html
http://www.sos.ca.gov/business/be/starting-a-business-types.htm#sole

The most difficult part of starting a business is writing the business plan. Finding a commercial kitchen to rent can also be a challenge, depending on what is available in your area.

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Allie06 Posted 8 Jun 2011 , 6:09pm
post #36 of 64

willing to be an Indian! =)

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TotTeefers Posted 8 Jun 2011 , 6:21pm
post #37 of 64

thanks Jason, I will check those links out!

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Mrs_Cupcake Posted 8 Jun 2011 , 6:35pm
post #38 of 64

I keep reading about fines for being caught but I called my county inspector and asked a 'hypothetical' question of what would happen if I did sell to my family and friends and got caught. He told me nothing, that they would just tell me to stop. He said there is so much illegal food being made in California they pretty much have bigger fish to fry than us small time cakers.

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Allie06 Posted 8 Jun 2011 , 6:42pm
post #39 of 64

Mrs. Cupcake, where are you? So Cal? Jason was saying his inspecters are super duper strict, and he is in Nor Cal. Wonder if its a location thing? I understand most people do what they have to do, but I would LOVE the chance to do what I want with a clear conscience.

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jason_kraft Posted 8 Jun 2011 , 6:49pm
post #40 of 64

I should clarify, inspectors are strict when people have full-fledged home-based baking businesses in CA (i.e. advertising online, not limited to friends and family). If you stay under the radar, severely limit your customer base, and keep your activities quiet, chances are no one will find out what you are doing.

There is a slippery slope problem though. If you are good at what you do, more and more people will want to buy your products. You may start bending the rules and selling cakes to friends of friends, acquaintances, etc., and before you know it people are mentioning your business on Facebook, reviewing you on Yelp, and so on. Once this happens it is easy for the health dept to track you down.

If you set your rules at the beginning that you will not accept money from anyone for your cakes, it will be easier to stay legal.

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Mrs_Cupcake Posted 8 Jun 2011 , 7:17pm
post #41 of 64

I'm in Fresno county, central Cali

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Gerle Posted 8 Jun 2011 , 8:13pm
post #42 of 64

I'm still waiting to hear back from Debi Robarts regarding the petition and what's happening with it right now. She started it and I don't think I can just take it over, but would like to see about getting this going here in CA. I'm working on letters to go to my representatives and would like to attach the petition, but don't want to hijack it from Debi. Ive also placed a message on her facebook. I personally don't use facebook, but am hoping she got at least one of the messages I sent her and that she contacts me soon. Otherwise...I guess I'll hijack her petition!

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itsacake Posted 11 Jun 2011 , 7:47pm
post #43 of 64

Not to be a killjoy, but there are four businesses that share my kitchen in Santa Clara County. Two weeks ago the inspector came and spent over four hours checking every detail. She was very focused on all equipment needing to be NSF (commercially) approved --no consumer stuff allowed. I got cited because one baker had left a bottle of Windex sitting next to the utensils and because the light in the walk-in freezer was out (the electrician was scheduled to come in and fix it the next day.) I was also cited because the pipe from the sink to the floor drain in the prep sink was not 1 inch above the lip of the sink (It is eight inches above the drain, but only 1/4 inch above the lip because of another building code.) She came back a couple of days ago to make sure the fixes were in. Obviously we moved the Windex while she was there the first time, the walk-in light was fixed and she decided, since I had talked to the contractor and there really is no fix, that we could use the veggie sink if we never put anything in it, but always wash things in a bowl or tub.

In the original visit, one of the bakers was cited for having forgotten to take her rings off, another for having chocolate chips and a couple of other things in bags with clips instead of in commercially rated containers.

Do you really think in that kind of environment they are going to OK baking from home? I don't care how many people sign petitions and talk to legislators. I don't think it is going to happen.

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Mrs_Cupcake Posted 11 Jun 2011 , 8:32pm
post #44 of 64

Unfortunately I agree with you itsacake, not in California. Everything is so strictly regulated they will never let us bake at home.

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jason_kraft Posted 11 Jun 2011 , 10:04pm
post #45 of 64
Quote:
Originally Posted by itsacake

Do you really think in that kind of environment they are going to OK baking from home? I don't care how many people sign petitions and talk to legislators. I don't think it is going to happen.



To be fair, the county inspectors have no say in what legislation gets passed at the state level. If the state legislators pass the law, the inspectors would have to follow the new rules (which may forgo inspections altogether for home bakers).

Although I agree that Santa Clara County inspectors can be sticklers...we were dinged for having pH test strips that were too accurate, apparently only Phion strips were acceptable.

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itsacake Posted 11 Jun 2011 , 11:28pm
post #46 of 64

Jason, I agree that if legislation were to pass, the Health Department inspectors would have to abide by it. But that being said, it seems the current health code is as it is because that is what has been legislated by the state, so for them to now turn around and say, just kidding, it's fine to bake in a home kitchen with minimal or no rules is to invalidate all the myriad rules that are already in place. I think the health inspectors would be lobbying hard to make sure that didn't happen.

If it's safe for baker x to bake cake in his/her kitchen on a consumer rated stove with no vent, why did I need an $8,000 hood, for example? And if a non-commercial Kitchen Aid mixer and microwave are OK for a home baker, why are commercially rated ones mandated for me? My volume is probably less than many home bakeries who do tons of little cakes, but that didn't matter-- It's the rules. I haven't ever used my Cricut Cake, but even having it sit in my kitchen was an issue with the inspector--because it may be made for cakes, but it isn't NSF inspected. (I really do have to figure out how it works one of these days--it would work well for a cake I have to do in August)

If this gets momentum and passes, Hey! The more the merrier. I'm much happier with the baking taking place outside my home kitchen so I can live there. (Though I"ll admit it was more convenient to do the sometimes unavoidable all-nighters from home.)

I didn't know there was more than one kind of test strip for the sanitizer. I guess I got the correct ones, since the inspector looked closely and didn't comment. I'll have to pay attention to always get the same ones!

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Larkin121 Posted 11 Jun 2011 , 11:56pm
post #47 of 64

Just happened to pop in...I'm not in CA, but I'm in WA which had just as strict of baking laws (only commercial facilities, no exceptions), and they just passed the cottage law. I was surprised it went through. It doesn't apply to me because I use perishable icings and fillings, but when I was talking to the HD in my process of getting a rental kitchen, I mentioned that new law in passing. They'd never heard of it and were astounded that it had happened. So I don't think they'll lobby against unless someone goes crying them about it. It appears the law went through without the county HDs even hearing about it.

The reason that they are less strict with the home bakers than the commercial bakers (supposedly) is that they put a cap on how much the home bakers can sell and figure that they aren't affecting nearly as many people as a commercial baker. They also aren't allowing anything perishable, so there is less risk over all.

It's worth trying for in CA, if you are someone who doesn't do perishable cakes and you don't plan to have much volume and don't care about a label on your foods stating that your product is from an un-inspected kitchen. (Many of the cottage laws require such a label). Seems like a lot of states who try for a cottage law eventually end up getting one.

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Skirt Posted 12 Jun 2011 , 12:31am
post #48 of 64

We're talking about the state that made silver balls (dragées) illegal....

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jason_kraft Posted 12 Jun 2011 , 12:37am
post #49 of 64
Quote:
Originally Posted by itsacake

But that being said, it seems the current health code is as it is because that is what has been legislated by the state



Much of the current food safety law in individual states is boilerplate from the FDA. Every state has their own variations (including CFLs) but the FDA's food code is pretty strict in it's own right. In practice the issue is more around how aggressive local and county health depts are in enforcing the laws on the books.

http://www.fda.gov/food/foodsafety/retailfoodprotection/foodcode/default.htm

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itsacake Posted 12 Jun 2011 , 1:04am
post #50 of 64
Quote:
Originally Posted by Skirt

We're talking about the state that made silver balls (dragées) illegal....




Actually, though I'm not sure..... I think not. There is just some attorney here who likes to sue people who sell them, so nobody will sell them. I'm pretty sure it isn't a real law. It's a scare tactic. I've had at least one out of state vendor tell me he would ship them to me.

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jason_kraft Posted 12 Jun 2011 , 1:08am
post #51 of 64

Correct, there is no law against dragees in CA, just an overly litigious environmental lawyer who sues anyone who carries them.

http://articles.latimes.com/2005/dec/18/magazine/tm-dragee51

However, CA did make trans fats illegal. Now that I think about it, because of the trans fat ban I doubt there will ever be a CA CFL that does not require home inspection -- a more liberal inspection perhaps, but at the very least they would need to ensure you were not using products with trans fats in saleable items.

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Gerle Posted 13 Jun 2011 , 2:06am
post #52 of 64

You're probably all right -- CA is going to be VERY strict in allowing home bakers if a Cottage Food Law passes. I contacted the Dept of Public Health who indicates that they would have a hand in enforcing this, and she didn't have anything encouraging to say about the possibility. That's probaby why I'm not hearing back from Debi Robarts -- she hit the wall and gave up. As I said before, I don't have the time to "lead" this, but will help out as much as possible, but this time of year I'm gone alot and there's no computer connections or cell phone coverage, so I'm basically unreachable unless I drive some place to make a call. Also, I have no desire to become a licensed baker. I love doing it as a hobby and will continue to do so. Besides, I'm a little on the "old" side to be thinking about tying my life up with a business at this age. I'm enjoying my retirement years and decorating for friends and family. So whatever help I do provide in this area, wouldn't be a benefit for me, but I don't mind helping others who could benefit from the Cottage Food Law.

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cheriej Posted 13 Jun 2011 , 2:27am
post #53 of 64

The three major cake supplies stores in my area do not sell dragees. These store owners also told me that the new thing for lawyers to do is if you do in fact use the gold or silver dragees is to be sued over a chipped tooth (kid bites into a dragee, chips tooth, you get sued to pay for all the dental work). And they go back and also sue wherever you bought the dragees from. I only donate cakes but to me the biggest issue in CA is liability.

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BlessP Posted 16 Jun 2011 , 11:42pm
post #54 of 64

Hello guys,

Do you know of anybody that rents out a commercial kitchen in the Tri-Valley area? I have emailed gourmade and she is currently full right now. I also emailed another one but he have a minimum of 10 hours a month per month and it's $30 per hour. I just don't think that I can consume the 10 hours in a month, since I am still starting.

Where do you guys advertise? I am talking about magazines and stuff for wedding cakes. Please share any information about this matter. Thanks

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lorieleann Posted 17 Jun 2011 , 11:40pm
post #55 of 64
Quote:
Originally Posted by itsacake

Jason, I agree that if legislation were to pass, the Health Department inspectors would have to abide by it. But that being said, it seems the current health code is as it is because that is what has been legislated by the state, so for them to now turn around and say, just kidding, it's fine to bake in a home kitchen with minimal or no rules is to invalidate all the myriad rules that are already in place. I think the health inspectors would be lobbying hard to make sure that didn't happen.

If it's safe for baker x to bake cake in his/her kitchen on a consumer rated stove with no vent, why did I need an $8,000 hood, for example? And if a non-commercial Kitchen Aid mixer and microwave are OK for a home baker, why are commercially rated ones mandated for me? My volume is probably less than many home bakeries who do tons of little cakes, but that didn't matter-- It's the rules. I haven't ever used my Cake, but even having it sit in my kitchen was an issue with the inspector--because it may be made for cakes, but it isn't NSF inspected. (I really do have to figure out how it works one of these days--it would work well for a cake I have to do in August)




this is pretty much what happened in AZ. Some counties are super strict and follow the FDA code to the letter (from what i'm told, Maricopa?), while others are slightly less strict (Pima), and others are more relaxed in enforcing. Now people are going by the new state law and the local inspectors don't have a plan in place on how to handle it. I really think that instead of providing the people with income opportunities, the state is just relieving the county health inspectors (and their budgets) of one area to oversee because the overall risk of danger is less. When i was getting inspected, our inspectors said that they'd rather go after the tamale vendors in the parking lots rather than a child's birthday cake maker. They also said that there is no way that they could inspect or want to inspect home kitchens due to the safety but also because of the incongruities of something being illegal in a commercial kitchen but okay in a home.

AZ's Cottage food provision doesn't do anything but ask for a food safety class (that is designed for restaurants passing inspection, not on how to sanitize equipment in a home sink), registering on a state list, and labeling food as home produced. I would feel a lot better if there were actual inspections of kitchens, a rule against allowing animals in the kitchen, and appropriate sanitizing procedures for the home kitchen. Right now, non-hazardous production seems to be on the honor system and there will be no oversight or follow up for food safety. I think that by basically exempting baked goods from the health code, in the long term it will hurt the credibility of the cottage baker, because God knows what happens in some cottages that makes you not wanting to be eat from their kitchen. I think there is a big difference in being an inspected home kitchen compared to it being a free for all.

Of course I'd really like the opportunity to bake at home and will probably register in addition to my rental kitchen, but I wish that there were measures in place in the law to provide some standard of quality and safety. I think there is a happy medium out there. I hope CA can find it thumbs_up.gif

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jason_kraft Posted 22 Jun 2011 , 3:12pm
post #56 of 64

CA Rep Bob Wieckowski is hosting an event with local business leaders to discuss how to create jobs in California, the event is Wed, June 29th at 10am in Fremont.

If you live in the 20th District (Fremont, Union City, Newark, Milpitas, parts of Castro Valley, Hayward, and Pleasanton) you can fill out a survey and RSVP for the event. If you don't live in the district you may be able to contact Rep Wieckowski's office and ask about it.

http://www.examiner.com/education-in-san-jose/can-legislators-create-jobs-for-california
http://www.asmdc.org/members/a20/made-in-california/item/2660-2011-business-summit

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cakenewbe Posted 11 Jul 2011 , 2:44am
post #57 of 64

Hello all,

I am most definitely willing to help in getting the cottage food law passed in california. I have done some research and read many articles, but i am still not sure exactly how to go about it.

I live in southern california, Los angeles county to be exact.

Are there any updates? Does anyone know who we can contact in my area?

I am willing to help with just about anything.

I do think that CA is quite strict when it comes to the health department and health codes/rules/laws, but i think that with several states passing the cottage law here recently now is probably the best time to get involved and get this passed in California.

There are many people from California here on CC and some that are not, that bake as a hobby, or operate under the radar because it is not legal, so i think that if we all start speaking out our voices will be quite loud and heard.

Thanks

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Normita Posted 11 Jul 2011 , 3:21am
post #58 of 64

Hi everybody!! I'm legal here in California, but definitely would love to be able to do this from home legally. I sure don't think I can take this on myself but I certainly can help...I live close to the capital...about 40 minutes.

Let's get this state legal!!

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cakeladyatLA Posted 11 Jul 2011 , 7:04am
post #59 of 64

I think that maybe Kelley (from the cakeboss software) might be able to help, she organized for the law to pass in Texas, so maybe she would give us some pointers.

Patty*

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uhezay Posted 2 Dec 2011 , 3:36am
post #60 of 64

This is now being pursued by the Sustainable Economies Law Center.

See http://www.theselc.org/cottage-food-laws/ and sign the petition here: http://www.change.org/petitions/california-state-legislature-enact-a-cottage-food-law-in-california

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