Originally Posted by deesweets
How else do you know if you can be successful at this business if you don't test the waters. You don't decide over night that I like making cakes and I am going to open a shop. If I am not making money at it on the side then I definately won't be trying to invest all of my time and money opening a professional shop. I don't think anyone is trying to step on anyone's toes here, but it is what it is. Just because people say they like your cakes doesn't me you can be successful at it. I would think most people started out selling cakes to friends and family and word of mouth before they became who they are. I know if someone asks me to make a cake for them I am charging them for my time and ingredients. I don't by any means think that it is stealing, people have all types of talents and they don't have to be licensed to do them on the side. I think this all boils down to the laws, why is this illegal. If I know how to sew well, that's extra income for my family.
Agree with you. I was spending around $200 a month giving cakes and cupcakes away. Now I just ask people to cover the cost of the cake (and only make things for very close family and a few very close friends).
I'm having the 2nd kitchen in my dad's house inspected next month so I can become "legal", though.
I have always wondered how so many people on Etsy get away with selling homemade food items on the site.
My husband is a forensic accountant, the tax laws regarding this kind of thing aren't so black and white.
To determine whether your baking is a hobby or a business ask yourself a few things...
Does your livelihood depend on the income made (if any) from this activity?
Do you make more money than what you spend on this activity?
If you are charging cost and not making any money, it's considered a hobby.
But, if your kitchen isn't legal, then you should probably stick to only baking for very close family and friends. We live in a sue happy society, people are always looking to point the finger at someone else.
Honestly, I have a hard time speaking down to someone who may be breaking the law, when I break the law almost every day...How many of you people speed? And by speed I mean go even one mile an hour over the speed limit. Law is law right?