If you are just making a cake for someone but charge them the cost of the products to make it, is it still considered a business? I make cakes for friends and family but I am starting to get more and more request for cakes and cant afford to keep giving them away but I love to help out and I dont want to charge anything more then the cost.
So what should I do, or can I do???
Thanks,
Ft. Bragg NC

If you exchange money for a cake, regardless of what you call it, it is a sale of food and generally requires a license. Many small decorators continue to sell cakes on the quiet.

The risks:
if someone is mad at you, they can file a complaint
if someone decides to sue you have no protection
the fine for illegal sales can be huge

That said, many decorators continue without problems. DO NOT advertise in any way. Health departments keep a lookout for that.

I dont know if this will work but just ask them to donate the cost of the supplies, and not for your time?????/

What if I tell them to bring me .... say 3 cakemixs this this and this and I will make it for you..... so there is no money envolved at all???? would that cause problems... I dont want to make cakes for as a business at all. Its like a craft project for me, but I have alot of family starting to ask me for birthday cakes ect......
If say someone gets mad at me and tries to sue me, would I still be in trouble for just baking it? I didnt charge anything?

If you ask for the supplies and just bake it as a favor i dont think that is illegal especially if they bring you all the stuff....with that said i would ask for everything you need.....not just the mix....as your right it does get expensive after a while......
eggs, butter, vanilla extract or what whatever it adds up.........

I thought of going to the store and buying the items,,.... and then giving them the receipt, but that is hard to do as well being that some items you only need one of or whatever, but I also tend to use the tops of pizza boxs covered in foil or something similiar so I guess some things will just be in my house and the cost covered......

Its hard to have hobbies in todays world.. lol sue happy people and state regulations. (but I wouldnt want to eat cakes out of some peoples kitchens either LOL) So regulations again are good at times.

I was reading over some of the replies and comments and was amazed at what all is involved legally. When I decided to take the cake classes at Michael's over the summer, it was just for fun. Of course, when rumor spreads that you've taken the classes, you will just about always have someone wanting a cake. After reading the comments, I've become very cautious about making them. I looked online last night for about an hour for laws governing bakeries or making food from home. To my surprise there was not that much stated. I'm in Charlotte, NC where they govern everything down to requiring you to have a permit for a yard sale! I'm really surprised at what can happen when you really start out with good intentions and are not trying to make it a "full-time" career.

I'm in California and I called the health department with the same question. They said that if I charged only for the supplies and they got a complaint about me then they would not get involved, since there was no profit made.

ml

thanks for all the replies, I guess I will just call and find out about the supplies thing from the state.

As for the North Carolina rules I read online last night and the most I could really get out of it that you could work out of home with an inspection and license,..... and you CAN'T have a pet indoors, bugs, ect lol.
I just do hobby cakes but if I ever buy my own home I may consider starting the actual business...... Make sure if you are going to start your own bakery business you talk with a tax advisor first before making any purchuses.. They are super super helpful with telling you what everything is, how to file, what is deductable, HOW to file for loss's if someone doesnt pay you. Everything, I do photography on a full time passes and when I first got here I looked into doing that and talked to a tax advisor... and she was great but then I didnt go through with the business for having to move again in a year : (

Good Luck to anyone out there.

I know this is an old post...and I haven’t yet delved into any of the other umpteen many other posts...all tabbed on my computer until dinners done and the kids are in bed lol. But does anyone know or have insight on mecklenburg county? Definitely not ready and don’t think I’m (honestly) good enough to sell cakes-definitely not fondant cakeslol-or other goodies just yet. But DHs coworker was asking how much I’d charge for a cake the other day (when I sent him in with leftovers to work so they wouldn’t go bad). So it got me thinking about all the rules and regulations. We have indoor pets-a dog and a cat-so definitely NOT ready. Just pondering...if anyone has any updated information.

The laws/rules go by county to county here in the US - in fact they can go by city/town to town :(  Many states now have what are called 'cottage' laws and state laws usually surpass any local ones.  You would have to look into your county, then further research your very local (town, city etc) to see what they might have.        Yrs ago I lived in a county that allowed cottage work but the city would not allow me to have classes (EXCEPT panio) in my home *because there would be excess traffic in the neighberhood!* I asked if I could have a Bible study or have a party with 50 people - "Oh yes - no proiblem" but I could not have 5 or 10 people come to my home for cake decorating lessons??  Of course the answer was NO - no lessons.  And the reason panio lessons were o.k.?  The wife of one of the council members taught panio! 

Youre always so helpful kakeladi. <3 

I knew it varied state to state and figured county by county. City to city is hit or miss for me I guess-i know sometimes with permits its like that in MI (where Im originally from) depending on what youre doing.  But geez... you could have a party of 5- people but not have a class of 5 people unless it was piano?! Grr...