Ali I would imagine dealing with the IRS is not as bad as you think Now I have not done this for cakes but I do for my Family childcare,



Getting Your EIN takes around 5 minutes in the place you mark why we checked other and wrote privacy so I do not need to give out my SS# to parents but since you do not need to give out the tax # You can still use you SS# unless you have employees


I get around not paying quarterly taxes by having extra taken out of my husband check each week. ....... now if I were to start doing my cakes I would do estimated taxes just because it would be harder to estimate income as it would vary guess it would depend on sales starting out my method would work

if your a small business in tx ....you can be aproved to file your sales taxes yearly....thats what i did for my photography business

I have a few questions:

Does anyone rent a kitchen in Maryland??

How do you go about renting a kitchen? I mean, what do you say when you call people up? I live close to a place that sells cakes and cake supplies, but I feel like I shouldn't ask them to rent their kitchen because they might think I'd be stealing their custumers.... Any thoughts????

Thank you!!!!!

I have made arrangements to rent a food safe kitchen in a church for $10. per hour. I haven't used it yet infact I am going through it tomorrow with the health inspector it's just a formality since it is already a food safe kitchen. Only a block from home. So check with your local churches and see which ones have a safe kitchen it was easy to find in fact it was the first one I checked out.
Good Luck

Does calling the Health Dept. raise any questions? I'd be afraid to give them my address to mail info! My luck they'd be knocking at my door!

I still don't know what to say when calling churches and bakeries..." Hi! Do you rent your kitchen!?" Wouldn't that sound crazy??
Anyway, I haven't even had my first order yet and I'm already thinking about renting a kitchen...I'm just trying to stay out of trouble...

Sorry this is long: I just introduced myself gave them my co name and a card told them what I need the kitchen for and asked if they rent out there kitchen and is it a food safe one. Then they will tell you that they need to check with the pastor or etc. I didn,t call I went directly to them and talk with the receptionist. They may even tell you about another church that they know of and already has been inspected by the health dept. You will be supprised at how many are out there and are willing to rent them. You should also check with your health dept to make sure its allowed in your area in fact they were the ones that suggested it. Don,t be affraid to contact your health dept your just inquiring I was worried that they wanted my name but never asked me for it. I went back when I was ready and made the nessasary arrangements with them and got my business licience. I'm all set to go just need the orders and I can advertise know without any worries. Hope this helps Sharon

FOR ALIMONKEY: I'm in Texas, too. I assume you already have a DBA. (If not, you need to register your company name at the county clerk's office by getting a DBA (doing business as) to declare your business name legal.) If you are a sole proprietor without employees, your EIN (employee identification number or tax ID) is the same as your social security number. So, when you file your personal taxes, you also fill out a Schedule C form for small businesses.

The sales tax rules are tricky and vary by county, so I would call and ask. When I first started my business, I was very confused when they told me that I couldn't charge sales tax. I made them give me a print out with all the Texas food sales tax rules. Here's the link to that:

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_115.html

Basically, they told me that I didn't charge tax unless I gave them utensils or a place to sit. If you make gift baskets, etc., you do not charge tax unless it contains non-food products like candles, etc.
Hope that helps!

If you are going to operate as a sole proprietorship, you can use your social security number and you will file a Schedule C on your Form 1040. You should set up a separate checking account for you business. Not at all trying to sound like an alarmist at all - but I'm a tax accountant "by day" - and the IRS has increased their audits of Schedule C filers and one thing that comes up again and again is the mingling of personal and business funds. If you keep a separate checking account and good records, you are doing great.

If you are doing a good deal of business you should consider setting up a business entity such as an S-Corp or LLC (depending on your state) as this can offer some liability protection as well. As a sole properietor you are totally liable if someone files suit against you and they can go after your personal assets (like your home) - as an S-Corp or LLC you get liability protection and they can only pursue business assets (there are a few exceptions to that, but not common). I myself am setting up an S-Corp for my business because there are some tax savings by doing that as opposed to Schedule C filing.

I've found a kitchen to rent as well and I'm very excited. I'm going to be moonlighting for some time but hope in the future to leave the number crunching for dough mixing!!

I am thinking about renting from a church, but I was wondeing about the storage. How or where do you leave the cakes and such to make sure no one messes with them or eats it? I'd be afraid of finishing a wedding cake on Friday night and going to pick it up the next morning and finding some one has poked or bumped it or worse. (Even the unfinished cakes.) My church does not have an aproved kitchen so I'd have to find another. At my church people are always in and out of our little kitchen and eating anything in there. I am so afraid of something happening while I'm gone. How do you guys work this out?

Thank you Sharon!
I'll try and get all the info I need.
Thanks!!

If I have a finished wedding cake I bring it home for delivery on the next day I won't leave it there unless I know it is locked up in a safe place.

Thanks for the reply. I wish I could do that, but I am not supposed to take it home. I would have to bake one night and decorate the next, so even leaving it undecorated makes me nervouse. Where you able to get your own corner for storage, or anything like that?

I am in Maryland and although it does vary on whether you need to take the sanitation course or not, the entire state requires you to cook in a commercial ktichen and obtain your own license. That is where the procedures start to vary. Even the fees are different. If you live on a farm you may operate in a domestic kitchen but the lady at my health department said the requirements are very stringent.

I rent from a church that has a commercially licensed kitchen. i pay a reduced rate because I am just starting out and they are just starting to rent. I pay rent like for a house on the 1st of th month. I pay x $ per hour. We have worked out that I can arrange to use it more if I ask. Also, if there is a weather issue or sick kids I can try to reschedule my time. but i still need to pay for it.

The one thing they said they like the most when I went in was that I already had an isurance quote for Liability insurance. They are going to want protection in case you have an accident, burn it down, or get sued. Check fire halls, grange halls, churches, etc. Bakeries keep early and long hours...so they may be less liekly to rent to you.

Also, last thing. If you are a sole proprietorship you can lose you personal assets (ie your house) along with your business assets if you get sued. If you have an LLC (single member or otherwise) your personal assests are protected other than the amount you invested in the LLC. Also, you need a sales and use tax license in MD b/c you have to charge sales tax on all things sold to people in MD.

Good Luck,

Julia

Julia,
Great info!!!
Thank you so much!!!

Do you think it's worth to go through all this if you're starting? What if you don't have a clientele!?

Oh! What county do you live in (if you don't mind me asking)??

Thanks!!!!

I am in Frederick county....you??

Well, I guess it depends on the amount you have to invest in starting. It is $190 to register the LLC, the $75 for the trade name registration, then the EIN and the MD sales and Use are free (I guess they figure they'll get it back soon anyway ), next you have the $150+ Health dept inspection (varies by county). Then of course, there is the insurance...mine is $350 a year for $2 mil Liability. Then you have to figure in the Rent as well. Plus I pay an accountant b/c I can't begin to figure out the taxes.

SO...I guess you have to see if it is worth it to you. I would definately advise having a couple months expenses set aside to begin.

I wish you luck and let me know if you need anything else. I am happy to share info. I was so lost and honestly a bit afraid when I started. This is a big step and I did not know who to ask. Now that I have found CC I feel a lot less alone on my own. At least it is a starting point!!

Thanks,
Julia

Hi Julia,

I'm in Anne Arundel County.

Well, your information was very helpful... thank you so much for everything!!
I guess I'll wait a little before starting...I have been baking for family only and I don't charge them, but I do think about baking for others, but I don't want to get in trouble...
Anyway, thank you so much!!!

Marcia

I skimmed through the posts and didn't see anyone mention craigslist so I thought I would

If you go to www.craigslist.org and find a city near you on the right hand side, then under housing click on "office/commerical" and type in commerical kitchen you may be able to find some places. You'll have to sift through the results to see which is just a kitchen for rent and not a whole building, etc.

In the past I have posted on craiglist "Wanted: Commerical Kitchen Space" and asked that it be a kitchen that has been inspected and approved by the local Health Department. I got a few responses but decided to stick with my website for now until we move.

Other options for kitchen rental space:

• 
  Community Church
  Community Hall
  Some city's have space they rent for adult school classes that have a kitchen they use for culinary classes
  Local Bar (some have kitchen space that isn't used and since most bars don't open until early evening so you have it to yourself)
  

Good luck,

Rochelle