Hello-

I think I need some help. I am new to cake decorating. However, I would like to build a clientel. I know that word of mouth is definitely the first way. However, I think I'm getting confused with all of the posts in the Busness forum.

- What determines if you need a license or not?
- What determines if you can have a business card or not?
- What determines if you choose a name like "Bunchy's Cakes" or just put "Cake Decorator" on a card?
- When can you create a brochure that includes prices and the types of cake, etc that you can offer?
- When can/can't you publicize prices?
- Why do I see prices that people charge for character cakes, but it's against the law (copyright infringement) according to the forum?
- When can I charge for a character cake (if at all)?
- Should you publicize that you can do a character cake if it's copyright infringement?

I just think I'm confused about all of this. It seems like everything is a potential legal issue.

I have a buddy locally who wants to start an event planning business and she wants me to be her primary person for cakes. However, after reading the forums, I'm scared to say yes. I know her next question is.. she'll need a price list and how much for what types of cakes, including character cakes... premium flavors, etc.

Any help is greatly appreciated.


Thanks-

Bunchy

Everything except the copyright stuff will depend on your state and city health and/or agriculture department. I'm generalizing on most of the stuff, so you'll need to check on specific requirements for your location.

I think all states require a business license to operate out of your home, but most of them will not allow a food business out of a home kitchen. Some states you can put a kitchen in your garage or basement, some you need a completely separate entrance and not accessible from the house, some you can't do it at all. Almost all have stringent requirements regarding equipment, etc.

Getting a business name with the county clerk (or equivalent) is usually pretty easy and it doesn't really mean anything except that nobody else can use it. If you use somebody else's business name they will have legal recourse against you.

You can pretty much do what you like as far as business cards, flyers, brochures, pricing, etc. I don't think (could be wrong) that any of it is actually illegal, it would just be potential arrow pointing the health authorities in your direction, and prices would be definite evidence that you sell your cakes rather than doing them for fun. Every piece of paper with your name & number and occupation multiplies the risk of getting caught.

You see people charging for copyrighted character cakes mostly because they don't realize there's a law against it, or because they're willing to take the risk for the business they get from them.

The only time you can charge for a character cake is if the only copyrighted stuff on them is licensed figures or trinkets that you've purchased. I personally would never put out a price list for character cakes.

As for your friend's event planning business, I don't know what to tell you. Maybe you could give her a price list if she promises to keep it confidential and not share it with clients.

To summarize - Yes, if you're operating an illegal business out of your home, EVERYTHING is a legal issue. If you make enough money at it, you're also breaking federal tax laws by not paying income tax. It's a risk that many many of us take. I'm a big chicken so as soon as I have enough saved, I will be getting a license and using a rent-a-kitchen for my baking, but that will still be a little while. I've done 1 character cake (it was my first paid cake) but won't do anymore. I like my house.

Good luck on all your endeavors!

Bunchy:

To answer your questions you need to call and find out what is needed in your state. They will send you a packet of information of the laws.

THANK YOU, THANK YOU, THANK YOU Both! I really appreciate you taking the time out of your busy schedule to help answer my questions. I will investigate this further in my state.

I swear, it's always something out there that seems to suck the fun right out of things.


.. Bunchy

Just a quick note about cards, brochures, and flyers... In my state that's consittered advertising and it's illegal, unless you're liscensed. It's a quick way to get yourself in hot water.

Boy everyone gave you great info here. The only thing I wanted to add is to what peacockplace said. I have heard of some people making "calling cards" with your name and phone number. Not that your a cake decorator or anything about a business. That way you can have something to give people but you aren't advertising your business. Also, do not underestimate the power of word of mouth. If you truly want to operate your "business" then get the word out there through friends and family!

WOW! Thanks everyone for your feedback. It is very valuable feedback and greatly appreciated. I was beginning to get nervous about the entire venture.


Bunchy

Ditto to everything already stated. I just wanted to add an idea about the business or "calling" cards...if you choose to go with just your name & phone #, I'd add a picture of a cake on there....so that should the person forget just what it is they have your card for, since there wouldn't be a business name (i.e. "Bunchy's Cakes") on it...the cake pic would be a reminder.

Thank you.. sounds great.


Bunchy