Home cake decorating business: Illegal in many states, but people seem to still do it? How, why?

Question

I would love to start a home-based cake decorating/bakery out of my home since I can't afford a store. I discovered running one is illegal here. But I come across a few people who whip out their cake portfolios and try to sell you their services anyway. I'd like to make birthday cakes for maybe friends of friends and just have them pass the word around that I can bake custom cakes. Would you still do it and try to keep it low-key or just forget your dream?

The reason it's illegal in GA is because it is food, and that they will then require a seperate building w/ a commercial kitchen, then inspect it. But I have ran across several women in the past who just do this out of their own home anyway.

Answer 1

HMMMM. Odd I know two ladies here in my town that make cakes and run a small cake making business out of their homes (in fact one of those ladies has made my kids B-Day cakes for years) . It is like any other home business (I have my own too). However they have to report their income on their taxes. Otherwise, I don't know how it can be illegal. Don't go by what people say, call the BBB and find out what the laws and regulations are. I am sure you can still follow your dream and bake those yummy cakes. obtaining a home business license might solve your problems too. I only had to file for a Tax ID number (for a home business) so I could file at the end of each year and pay my taxes due to the state. Simple as that. Good luck to you.

Answer 2

I'd say do further research with your local and state government on the matter, to be absolutely sure. I'm in NC and there are many home-based (and VERY LEGAL) cake businesses, mine included. In NC, we do have to apply for a license, have our home kitchens inspected by the Dept. of Agriculture, and meet the criteria that they indicate. Once inspection is passed, the license can be granted and we just pay yearly taxes and file on federal tax returns like anyone else. I'd think that other states would have similar laws, but there's no reason for you not to research it, rather than taking someone's word for it.

Answer 3

Under what law or category of law is it illegal? I don't think its illegal to run a cake business...its only illegal to run a business and then not put the income on your tax returns. I bet that's what got the people in trouble.