Not Selling A Cake, But Getting Paid For Ingredients, Etc.

Business By SoFloGuy Updated 3 Jun 2012 , 2:02am by jason_kraft

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SoFloGuy Posted 2 Jun 2012 , 4:49pm
post #1 of 10

In a state without cottage laws can you agree to make a cake for someone if they will pay for all the ingredients and packaging and gas money for you to get to the store?

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Jess155 Posted 2 Jun 2012 , 5:16pm
post #2 of 10

I live in a state that doesn't have a cottage law. I know you're trying to find a loophole, but sometimes it's not worth it. Getting paid anything is still illegal.

The other thing is, ingredients are a small cost of the cake. You are putting your time, talent, and energy in for free. At some point, that's not worth it, right? I would urge you to get involved in getting a cottage law passed in your state. Or look into renting a kitchen.

I do a few cakes here and there for birthdays and family get togethers, and for my husband's work. I also do 1 or 2 big ones (4-5 tiers) every year for a friend's wedding or a non-profit fundraising dinner. I do not charge for anything. It's not worth the risk.

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ladyellam Posted 2 Jun 2012 , 5:31pm
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Jess155 gave you some really good advice. It just isn't worth the risk. If you want to practice, why not get some cake dummies, decorate them, take pictures and then try a different technique out?

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Ashleyssweetdesigns Posted 2 Jun 2012 , 6:29pm
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There is nothing wrong with people giving you money to purchase ingredients which is certainly not a small cost in making cakes. Materials, supplies etc are really expensive. Receiving gas money might b a little excessive. If your not making anything out of it monetarily and just love doing it as a hobby more power to you. icon_smile.gif

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jason_kraft Posted 2 Jun 2012 , 6:31pm
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Some states have an exception for personal chef services, so it may be legal in your state to sell the cake if you can make it from start to finish in the customer's kitchen.

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SoFloGuy Posted 2 Jun 2012 , 6:35pm
post #6 of 10
Quote:
Originally Posted by jason_kraft

Some states have an exception for personal chef services, so it may be legal in your state to sell the cake if you can make it from start to finish in the customer's kitchen.




Cool, great info.

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BlakesCakes Posted 3 Jun 2012 , 1:18am
post #7 of 10
Quote:
Originally Posted by jason_kraft

.......so it may be legal in your state to sell the cake if you can make it from start to finish in the customer's kitchen.




It's an interesting idea and I'd sign up for it in a second..........BUT only if the client DID ALL OF THE CLEAN-UP. I'd consider myself the luckiest solo baker in the entire WORLD!

Oh, and if they didn't mind me taking over their entire kitchen for at least an entire day, especially between the hours of 5pm and 6 am---LOL.

Have KA & pans...........will travel !
Rae

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kelleym Posted 3 Jun 2012 , 1:23am
post #8 of 10
Quote:
Originally Posted by Jess155

I live in a state that doesn't have a cottage law. I know you're trying to find a loophole, but sometimes it's not worth it. Getting paid anything is still illegal.



I'm not sure where this information comes from, but every state's laws are different. It's best to call the local Health Department for accurate information regarding laws in your city, county, or municipality.

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Jess155 Posted 3 Jun 2012 , 1:46am
post #9 of 10
Quote:
Originally Posted by kelleym

Quote:
Originally Posted by Jess155

I live in a state that doesn't have a cottage law. I know you're trying to find a loophole, but sometimes it's not worth it. Getting paid anything is still illegal.


I'm not sure where this information comes from, but every state's laws are different. It's best to call the local Health Department for accurate information regarding laws in your city, county, or municipality.




This is, of course, taking into account that your HD provides you with a reliable answer and not the run around my HD gave me.

Also, from these forums I've gathered that it's not the HD that is the big concern (although it is certainly A concern), it's the IRS.

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jason_kraft Posted 3 Jun 2012 , 2:02am
post #10 of 10
Quote:
Originally Posted by Jess155

Also, from these forums I've gathered that it's not the HD that is the big concern (although it is certainly A concern), it's the IRS.



The penalties for tax evasion are usually more serious than noncompliance with health dept rules, but luckily it's much cheaper and easier to comply with the IRS than it is to rent a commercial kitchen and pass a health inspection.

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