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Not selling a cake, but getting paid for ingredients, etc.

post #1 of 10
6/2/12 at 9:49am
Thread Starter 
In a state without cottage laws can you agree to make a cake for someone if they will pay for all the ingredients and packaging and gas money for you to get to the store?
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post #2 of 10
6/2/12 at 10:16am
I live in a state that doesn't have a cottage law. I know you're trying to find a loophole, but sometimes it's not worth it. Getting paid anything is still illegal.

The other thing is, ingredients are a small cost of the cake. You are putting your time, talent, and energy in for free. At some point, that's not worth it, right? I would urge you to get involved in getting a cottage law passed in your state. Or look into renting a kitchen.

I do a few cakes here and there for birthdays and family get togethers, and for my husband's work. I also do 1 or 2 big ones (4-5 tiers) every year for a friend's wedding or a non-profit fundraising dinner. I do not charge for anything. It's not worth the risk.

I homeschool because I've seen the village and I don't want it raising my children.

 

http://whynotethiopia.blogspot.com/

 

 

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I homeschool because I've seen the village and I don't want it raising my children.

 

http://whynotethiopia.blogspot.com/

 

 

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post #3 of 10
6/2/12 at 10:31am
Jess155 gave you some really good advice. It just isn't worth the risk. If you want to practice, why not get some cake dummies, decorate them, take pictures and then try a different technique out?
Kathy
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Kathy
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post #4 of 10
6/2/12 at 11:29am
There is nothing wrong with people giving you money to purchase ingredients which is certainly not a small cost in making cakes. Materials, supplies etc are really expensive. Receiving gas money might b a little excessive. If your not making anything out of it monetarily and just love doing it as a hobby more power to you. icon_smile.gif
Mommy1st Cake Decorator 2nd.........
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Mommy1st Cake Decorator 2nd.........
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post #5 of 10
6/2/12 at 11:31am
Some states have an exception for personal chef services, so it may be legal in your state to sell the cake if you can make it from start to finish in the customer's kitchen.
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post #6 of 10
6/2/12 at 11:35am
Thread Starter 
Quote:
Originally Posted by jason_kraft

Some states have an exception for personal chef services, so it may be legal in your state to sell the cake if you can make it from start to finish in the customer's kitchen.



Cool, great info.
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post #7 of 10
6/2/12 at 6:18pm
Quote:
Originally Posted by jason_kraft

.......so it may be legal in your state to sell the cake if you can make it from start to finish in the customer's kitchen.



It's an interesting idea and I'd sign up for it in a second..........BUT only if the client DID ALL OF THE CLEAN-UP. I'd consider myself the luckiest solo baker in the entire WORLD!

Oh, and if they didn't mind me taking over their entire kitchen for at least an entire day, especially between the hours of 5pm and 6 am---LOL.

Have KA & pans...........will travel !
Rae
I love you, but your emergency is not my crisis!

They say that a little knowledge is a dangerous thing, but it is not one half so bad as a lot of ignorance.--Terry Pratchett (b.194
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I love you, but your emergency is not my crisis!

They say that a little knowledge is a dangerous thing, but it is not one half so bad as a lot of ignorance.--Terry Pratchett (b.194
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post #8 of 10
6/2/12 at 6:23pm
Quote:
Originally Posted by Jess155

I live in a state that doesn't have a cottage law. I know you're trying to find a loophole, but sometimes it's not worth it. Getting paid anything is still illegal.


I'm not sure where this information comes from, but every state's laws are different. It's best to call the local Health Department for accurate information regarding laws in your city, county, or municipality.
How to Price Your Cakes
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How to Price Your Cakes
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post #9 of 10
6/2/12 at 6:46pm
Quote:
Originally Posted by kelleym

Quote:
Originally Posted by Jess155

I live in a state that doesn't have a cottage law. I know you're trying to find a loophole, but sometimes it's not worth it. Getting paid anything is still illegal.


I'm not sure where this information comes from, but every state's laws are different. It's best to call the local Health Department for accurate information regarding laws in your city, county, or municipality.



This is, of course, taking into account that your HD provides you with a reliable answer and not the run around my HD gave me.

Also, from these forums I've gathered that it's not the HD that is the big concern (although it is certainly A concern), it's the IRS.

I homeschool because I've seen the village and I don't want it raising my children.

 

http://whynotethiopia.blogspot.com/

 

 

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I homeschool because I've seen the village and I don't want it raising my children.

 

http://whynotethiopia.blogspot.com/

 

 

Reply
post #10 of 10
6/2/12 at 7:02pm
Quote:
Originally Posted by Jess155

Also, from these forums I've gathered that it's not the HD that is the big concern (although it is certainly A concern), it's the IRS.


The penalties for tax evasion are usually more serious than noncompliance with health dept rules, but luckily it's much cheaper and easier to comply with the IRS than it is to rent a commercial kitchen and pass a health inspection.
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