Is This Illegal?

Business By ape Updated 27 Mar 2006 , 3:46pm by ape

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ape Posted 23 Mar 2006 , 2:26pm
post #1 of 39

OK...so now I'm completely confused. Does anyone have any links to the LAW in Texas. Is it illegal to bake and sell cakes out of your home without a license?

I've checked out the state departments website and have found information on getting licensed, but that's not what I want to know. If it is illegal to make cakes out of your home and sell them, is it illegal to make them and give them away? Does it become illegal only if money changes hands?

Please help! I'm so confused! icon_cry.gif

38 replies
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mmdd Posted 23 Mar 2006 , 2:32pm
post #2 of 39

I don't live in Texas, so sorry I can't help you much, but here's a bump!

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cakesbyallison Posted 23 Mar 2006 , 2:37pm
post #3 of 39

Unless you have a commercial kitchen in your home, it is illegal to sell cakes out of it (if you were to get busted by the health department, I think they'd give you a firm "warning")... A commercial kitchen must be seperate from your family kitchen and their are certain requirements (i.e., free standing sink, etc) and must be certified by the health department. I wouldn't think giving cakes away (as gifts) would be an issue... ?!

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ape Posted 23 Mar 2006 , 2:40pm
post #4 of 39

That's what I think the rules are too......what if you just had people reimburse you for supplies? I want to make cakes for people, but I'm definitely not independently wealthy......how can I do this & not break the law?

Does anyone have any links to the actual law?

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CarolAnn Posted 23 Mar 2006 , 2:56pm
post #5 of 39

So I wonder, could you make cakes in your home and give them away but accept a donation? I wouldn't think it'd be unlawful to make and give away cakes. If that were the case you couldn't make them for your kids even. I'm not in TX though.

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ape Posted 23 Mar 2006 , 2:59pm
post #6 of 39

That's kind of what I was thinking too....maybe even just make cakes and give a detailed list of supplies and get reimbursed....then if they give you more it would be like a donation/bonus.

It's not like a make even one cake a month....but I do have people that want me to make cakes for them and now I don't know what to do!

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MariaLovesCakes Posted 23 Mar 2006 , 3:00pm
post #7 of 39
Quote:
Originally Posted by ape

That's what I think the rules are too......what if you just had people reimburse you for supplies? I want to make cakes for people, but I'm definitely not independently wealthy......how can I do this & not break the law?

Does anyone have any links to the actual law?




Hello, this is not related to your post but I noticed the picture under your name.... Is that from the new movie Pride and Prejudice? How did you like it? I didn't get to see it.

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bdziewit Posted 23 Mar 2006 , 3:11pm
post #8 of 39

I live in TX and checked with various agencies here. It is illegal to bake a product in your home and sell it. You have to be licensed and be baking in a legal facility. You are allowed to bake in a church, restaurant, etc as long as your are licensed. You can make a deal with a restaurat, churh in your area to "rent" time and space. Hope this helps.

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ape Posted 23 Mar 2006 , 3:29pm
post #9 of 39

bdziewit....thanks for the info....that's what I'm finding out pretty quickly. But if you are just having people reimburse you for supplies, you are not making any money. I still want to make cakes, but can't necessarily afford to just make them without being reimbursed for supplies.

marialovescakes.....BEST MOVIE EVER! It is now my favorite as well as my husband's favorite movie. I've seen it about 8 times and it's been out on video 2 weeks (plus we saw it at the theaters).

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sweetcakes Posted 23 Mar 2006 , 3:39pm
post #10 of 39

take a look at http://www.tdh.state.tx.us/bfds/retail/tfer.html
this is the Texas Food Establishment Regulations, this might help you.

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parismom Posted 23 Mar 2006 , 4:09pm
post #11 of 39

How discouraging. It takes money to make money so unless you can build a commercial kitchen seperate from your house....you start to feel like, what is the point. I wish laws weren't so strict and SO many when it comes to this - cakes. I may not have 2 kitchens but my house is immaculately clean, and still it would not be allowed. It is hard to do anything, even stuff that seems so stay-at-home- mom. Oh well, what can you do.

It just gets me very upset.

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MomLittr Posted 23 Mar 2006 , 4:31pm
post #12 of 39

I thought if you baked and sold "privately" that you would be under no regulations - say baking for friends, relatives & co-workers. As long as you don't put an ad in the local paper where the authorities will see it, you should be ok.

deb

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bakers2 Posted 23 Mar 2006 , 4:44pm
post #13 of 39
Quote:
Quote:

But if you are just having people reimburse you for supplies, you are not making any money




Does the law state that you are not aloud to be "paid for cakes" or "profit from cakes? There could be a difference.

my advice - do what you think is ethical and within the scope of the law.

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sweetcakes Posted 23 Mar 2006 , 5:01pm
post #14 of 39

parismom, i agree, it is very disappointing, especially when shows like Oprah, and on the food network talk about people starting their own bakery businesses at home and then expanding into retail space, we all know they started off illegally too. we all have to start somewhere.

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Lazy_Susan Posted 23 Mar 2006 , 5:10pm
post #15 of 39

I agree... We all have to start somewhere! I mean, it's not like I can go open a corner bakery and expect to have clients the very next day. Gee whiz, it takes money and I don't know about y'all but my money is all taken up in bills. If I had the money to open a bakery I would.

Lazy_Susan

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gilson6 Posted 23 Mar 2006 , 5:15pm
post #16 of 39

There was a post on CC not too long ago about a woman that had put an ad in her small community newspaper. The next day there was a knock on the door from the health inspector. She was fined $15,000.00. I do cake decorating and do sell but it is by word of mouth.

As far as having being given a donation on top of reimbursement - a donation would only be considered a donation if you were a non-profit organization.

I think it is up to each of us individually what we think is ethical. The laws in Texas are very discouraging for those of us that want to use our skills to help us make a little extra money. From what I understand - it is not the same in every state. Also, check the county that you are living in. Some counties in Texas have different rules and regulations for this type of business.

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ape Posted 23 Mar 2006 , 5:31pm
post #17 of 39

My husband has since talked to a lady at the STATE health dept. who said if I was receiving "compensation" it would be illegal. She told him to talk to the county health department to further clarify the law.

I think it should be OK if people are just reimbursing me for supplies, or buying the supplies themselves and then having me make their cakes. Obviously, I would not be doing any large orders (wedding/quincinera) unless they were really close friends.

Morally, I will not do something if I know it is illegal....even if the chances are that I won't get caught. How can I teach my kids to obey laws including God's laws when I choose to easily overlook them?

Most of my friends would probably give me something over and above the cost of supplies.....what to do with that?

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tanyap Posted 23 Mar 2006 , 5:44pm
post #18 of 39

if your friends/family give you above and beyond the cost you could ask them to give it to you in the form of gift cards to various stores (like Michaels or Hobby Lobby!) ...that way it wouldn't be construed as profit on the cake.

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ape Posted 23 Mar 2006 , 5:48pm
post #19 of 39

I was kind of thinking the same thing....just taking gift cards. If you want to come right down to it, I could have people buy the supplies and bring them to me.....but how can you ask someone to buy a package of dowel rods when you only need 2?

It's just so crazy and frustrating. I really do understand the purpose of the law....it's to protect people, but it's not helping my frustration at all!

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lisamarie182 Posted 23 Mar 2006 , 6:03pm
post #20 of 39

This is such a frustrating topic. I guess the moral of the story is, if you advertise and expect to make baking/decorating a thriving business, then treat it as such by renting space and paying your taxes. If friends and family, and the friends of friends and family, ask you to make them a cake, then you are doing them a FAVOR, not a SERVICE. And because of the GIFT of this FAVOR, they can feel free to give you a monetary GIFT; a mere token of their appreciation. Does the Health Dept. crack down on Bake Sales at churches and schools....NO. Do they chase after the little old lady who bakes goodies for my local coffee shop...NO. Do they search out the little roadside stands in front of farmhouses and fine them for selling fruit pies....NO. I wouldn't sweat it, as long as it's not a huge 7 day a week cake business. If business is THAT good, I'm sure you could afford rental kitchen space or your own storefront. Otherwise, just continue making people smile, one cake at a time! thumbs_up.gif

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ape Posted 23 Mar 2006 , 6:06pm
post #21 of 39

Good point lisamarie.....I'm not trying to make this into a business right now....I have a 4 year old, 3 year old and an 18 month old. I so enjoy making cakes...and the extra $20 every now and then is nice, but definitely not worth building a $15,000 kitchen.

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ape Posted 23 Mar 2006 , 6:09pm
post #22 of 39

AND...I actually do report my profits as hobby income!

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Debicakes Posted 23 Mar 2006 , 6:24pm
post #23 of 39

Hi, I'm new to writing in a forum and I don't know alot about computers. Ijust sent a message to I thought this forum, Lord only knows where it went.
I do know about making cakes and getting turned in to the health department and parish tax office!!
Thats what happened to me recently. I to was helping friends out only asking to be reimbursed.
When I got the letter from the tax office they wanted me to register my business and pay taxes on the money I had received. I called and told them I didn't have a business and that my friends only reimbursed me. They said "no money can exchange hands". I called the health department and they were very helpful. You can not cook in your home and sell food. You have to have a separate kitchen. I'm now turning my garage into a new kitchen. I have been approved by the city inspector. My homeowners insurance will not allow me to advertise. It will be strickly word of mouth.
I'm going to make cakes and take to the hospitals, banks,school teachers, etc... free for now.
Anyone can give you a cash donation or gift. Just never take a check! Have your friends go and buy ingredients. You can be reimbursed, this is America!
Just always get it in cash. Debicakes

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ape Posted 23 Mar 2006 , 6:30pm
post #24 of 39

Are you in Louisianna Debi? The reason I ask is because you said "parish" tax office! That's very interesting....even being reimbursed could get you in trouble!

Sometimes I wished I played the lottery!

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yacbutrfly05 Posted 23 Mar 2006 , 6:42pm
post #25 of 39

I have a friend who calls herself a personal chef and that is how she can get around the situation. You may want to check that out.

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doitallmom Posted 23 Mar 2006 , 6:55pm
post #26 of 39

I ALSO MAKE CAKES FOR FRIENDS AND FAMILY. I DON'T DO IT AS OFTEN AS I WOULD LIKE TO AND WHAT I'M PAID IS HARDLY ENOUGH TO PAY TAXES ON. THAT IS MOSTLY DUE TO THE FACT THAT I HAVE 8 CHILDREN AND JUST DON'T HAVE THE TIME TO BAKE AND DECORATE AS MUCH AS I'D LIKE. I REALLY WOULD LIKE TO MAKE IT A CAREER WHEN ALL THE KIDS ARE IN SCHOOL; ANYONE HAVE ANY INFO ON HOW I CAN GET A JUMSTART (WITH LEGAL PAPERWORK,GRANTS,GENERAL KNOWLEDGE,ETC.)?

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prettycake Posted 23 Mar 2006 , 7:03pm
post #27 of 39

I am in California. Last month I spoke to someone at the Business Licensing Agency, and they told me I cannot sell any food (incl cake) that is prepared in my home . It has to be prepared in a Commercial Kitchen..that is why I gave my cakes away to friends, family, co-workers, neighbors, schools and churches... without accepting any money..that way, they cannot complain..not that someone ever did..
icon_smile.gificon_smile.gif

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Euphoriabakery Posted 23 Mar 2006 , 7:11pm
post #28 of 39

I am also in California and when I talked to the buisness license office they said the same thing. However when I talked to the health department they said that as long as I am not selling my product at an organized city, or county in my case, event that it is considered a private sale and is not regulated at all. A buisness license has nothing to do with wether you sell food or not. You can get a buisness lisence for a home based buisness. Regulations are done throught he health department of your city or county, depending on where you are zoned. Some are more strict than others, but mine is pretty relaxed and seem to turn the other way to this kind of sale because there are no current regulations on this kind of buisness.

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vetty Posted 23 Mar 2006 , 7:16pm
post #29 of 39

Euphoriabakery, I live in San Diego, California. Where did you find this info at? I bake out of my home and I'd rather stop than get a hefty fine. Thank you.

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tobycat Posted 23 Mar 2006 , 7:17pm
post #30 of 39

I'm in CA too, and this is really discouraging! I've gotten paid for a few cakes (not actually making anything if you include the time I took on them), and have thought about starting a business when the kids are older. But this is just too much! I wonder though, Debicakes, how they found out about you???? Did you report your income? A lot of cake makers would be in serious trouble if they checked over this site where people talk about pricing, etc! I agree about the bake sales, etc. They never go fining them. I think as long as you're handling things by word of mouth and aren't doint in 24-7 then things should be okay. It's not really a business then -- it's a hobby and your friends and family are simply being respectful of your time and the cost by reimbursing you and showing their appreciation by giving you a little extra.

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