How legal should I be? - Page 3  

Off the topic, but ryannrochelle, marijuana (to smoke) is legal in CA, if you have a medicinal M card. Indeydebi, you can move here !

cakes sold from an unlicensed kitchen are illegal, subject to fines and other legal "reprimands", just like pot, or hooking, or doing home repairs without a contractors license.

Driving is not illegal .... unless you don't have a license.
Selling cakes is not illegal ... unless you don't have a license.

Lots of things that are not illegal have little rules that go along with them, which is the part that makes them NOT illegal.

Sorry, I just can't get my head around the idea of being able to pick and choose which laws we should follow under the pretense defense of "just trying to make a little money". Anything can be justified with that argument.

I'm just sorry for those who just don't want to hear it.

And for the record, I can totally understand being frustrated and even angry at discovering these laws. I found CC when I was trying to find info on being able to sell from home. I have physical issues that prevent me from being able to commute and lift heavy things, so a rental kitchen is out and I thought baking from home would a great solution...'till I learned I couldn't here. But I also learned about a great CC member working hard to change that for my state. Maybe see if there is already a movement in your state or start one yourself. Other states do already have cottage food laws that permit selling home baked items - maybe one day, it can be permitted in all.

actually, according to the IRS, even if you make 1$ doing anything, you must report it...granted, you are expected to report the expenses incurred making that 1$ thus perhaps no taxes would be warranted...but there is no state that allows a "minimum amount" of income before you have to report it. Granted, most people aren't going to go to this extreme to report earning one buck...but the IRS certainly is expecting each of us to report it. I just wanted to clear up anyone's confusion about "earnings less than X amount of dollars per year" not having to be reportable....I've heard that before from others but it's simply not true.
BTW...MB20fan.... (I'm now, literally eating popcorn at my desk, just waiting for the next scathing remark, )

back to the OP, i've found hobby caking can still be incredibly enjoyable though not profitable. the downside is that it, like my other hobbies, i have to pay for them. i can't afford to buy movies or books every day, and i can't afford to do cakes every day. pick and choose your "battles" and always do cakes with love, cuz that's free!

So many people have the attitude of "It's not fair that I want to make some extra money but can't afford to do it legally by building a state-approved kitchen and being approved, carrying insurance, and all the other legal stuff! It's not my fault that I can't afford this! This is my dream and how dare they say I can't follow my dream by not being able to afford to do it the legal way! It's just selling some cakes. It's not a big deal!"

This attitude chaps my hide. When my hubby wanted to go back to school to "follow his dream", we couldn't afford it outright. We had to make that tough decision of making it happen financially. Wouldn't it be great if he could have just walked into the school he wanted and said, "Hey, it's not fair that you are telling me I can't follow my dream of getting my degree from this school because I can't afford it. You can't tell me that. It's my right to follow my dream regardless of if I can pay for it or not." That's just not how it works people. When I decided to follow my dream of opening my own cake business, it was hard! It took me over 18 months of hard work, thousands of dollars, and numerous sacrifices to do it the right way. No, I didn't have a huge amount of money just waiting in a bank account for me. I had to prioritize my finances, get a loan for what I needed, and bust my tail to get it up and running.

Just because you really want something and can't afford it, uh....that's life peeps!

Lol...from another site that I frequent. This topic never gets old...

tootie0809,

+1 for your most excellent post.

Best answer ever!

And there is not a lot of negativity here. What is here is a lot of what others do not want to hear. Once you let it sink in, then you can breathe and see that others are speaking the truth.

I find it interesting that this topic comes up from newbies all the time. If you go search the archives, if it works, you will find the same consistent answer all the time. The newer ones don't like it and defend it. The older members know the laws and state the truth. It never changes. So the only negativity are the ones that start the comparison of speeding and mechanics and babysitting and other such nonsense.

Go ahead, keep going as you are, get caught and then try to use the defense that others speed in their cars and that's illegal so I should be able to bake from my home illegally too.

Personally, I love this law. I have seen some commercial kitchens that I won't eat at the establishment anymore after seeing them. I can't imagine how an unregulated kitchen may look like if there were not these laws in place.

http://www.cbsnews.com/8301-504083_162-20012899-504083.html

Love the last line in the article

http://www.cbsnews.com/stories/2010/08/09/ap/strange/main6758706.shtml

I hope she paid her taxes before she went on that trip

I am giving myself 10 months to prepare all of my paperwork and take business courses (not required but something I feel is important) so I can become legal. I don't plan to bring in a lot of money but I know that even selling a cake for $20 is illegal and I don't want to break the law. It doesn't matter to me that I may not get caught because I know it is against the law. Making cakes can be expensive but for right now, I will only make cakes for the people I don't mind spending the money on (as gifts) and turn everyone else down until I can legally accept payment for my services. I need the practice anyway. A lot of people love my cakes but I am not even close to having the decorating skills you CCers have! Hence, no photos posted! I am determined to make money legally. I read this entire post and I found it very informative. I did not get a negative vibe at all. Thank you CC for all of your priceless insight.

I am a "newbie" as you would put it. I've always looked at this site with amazement at all the wonderful work you ladies (and gentlemen!) do. While I don't think there is any negativity in this thread, I think there is an awful lot of snarky comments. A lot of looking down upon others. I thought this site was here for people who share a passion for cakes to help and inspire one another.
We own a business having nothing to do with cakes at all, but it is a small business and I know small business laws. What I don't know are the laws pertaining to the food industry which was why I clicked on this link out of pure curiousity. My cakes are simply a hobby for me. I make cakes for my family because it makes me happy. If I had come here to ask this question, as apparently so many had, I would be seriously saddened by a couple of the responses but thankful for the ones that gave good info MINUS the snarky attitude. Yes, those of you that are liscensed and 100% legal are at a higher level then most, but don't treat someone like they're stupid or a child when they honestly ask for advice.
I found the pot comment to be a tad overboard. I get that you were trying to hammer home a point, but it is not the same. Pot has caused A LOT of problems for someone very close to me and someone I love dearly (WITH a perscription). It is an addictive DRUG that can ruin lives. My point, and I do have one, is just to think before responding to someone. Be kinder. The world would be a better place. Hope I haven't offended anyone.

Her parents would still have to declare the income (either on a separate tax return for her or on their own taxes), but since her income was less than the standard deduction she would not have to pay any income tax.

Depending on the state/local laws she may owe sales tax, but the amount due is probably not worth the time and negative publicity. The IRS, on the other hand, has no such qualms about negative publicity.

http://www.fairmark.com/college/kidtax/standard.htm

Here's a thought.........How about being legal just because it's the right thing to do? Just my opinion......

I just wanted to add something. Actually the IRS says the following about filling taxes.
Table 1-1.2010 Filing Requirements for Most Taxpayers

You DO NOT have to file taxes if you income was below the following amounts.

Single   under 65   $9,350  
   65 or older   $10,750  
Married filing jointly***  under 65 (both spouses)  $18,700  
   65 or older (one spouse)  $19,800  
   65 or older (both spouses)  $20,900  
Married filing separately  any age  $3,650  
head of household   under 65  $12,050  
   65 or older  $13,450  
qualifying widow(er) with  under 65  $15,050  
dependent child   65 or older  $16,150