Home-Based Business - Custom Cakes ??? (Houston, Rule: to rent, homes, wedding)

[revive]

Hello,

My wife, a talented baker & cake decorator, is getting serious with her hobby and now wants to go pro. Basically, she wants to take orders for custom birthday cakes, wedding cakes, cup cakes, etc. Everything will be done at home.

We moved to TX just 2 years and are unfamiliar with local laws.

Can anyone give us an input on how to get a license? What are the requirements?

Is it worth it to form an LLC / LLP, in order to protect our personal assets from any potential liability?

Any input will be appreciated. Thanks!

[Poltracker]

Originally Posted by revive

Hello,

My wife, a talented baker & cake decorator, is getting serious with her hobby and now wants to go pro. Basically, she wants to take orders for custom birthday cakes, wedding cakes, cup cakes, etc. Everything will be done at home.

We moved to TX just 2 years and are unfamiliar with local laws.

Can anyone give us an input on how to get a license? What are the requirements?

Is it worth it to form an LLC / LLP, in order to protect our personal assets from any potential liability?

Any input will be appreciated. Thanks!

I would contact the health department first to determine if you are allowed to do this. You must have a permit to sell prepared foods and your food prep area is subject to inspection. Private homes are not allowed to be used for commercial food preparation. See the rules here:
Food Establishments Group: Rules and Regulations
The specific one on private homes is 25 TAC 229.167(d)(10)

[Texascrude]

I'd set up an LLC if I were doing anything commercial. Our society is far to litigious to just hope that you won't get sued.

Even if they're delicious, someone might sue your friend for eating too many and getting fat!

[chris_ut]

LLCs and S-Corps also have tax benefits should your wife start making any real money. She will need to rent time or space at a commercial kitchen in order to sell her food.

[descovy]

Nope sorry... no legal way to have a home based cake decorating job in Houston. There is a petition going around for a cottage foods law to make it legal... saw it on cakecentral.com awhile back.

So I wouldn't bother about LLCs and S-Corps right now. Enjoy baking for family/friends (often can be offered in liu of presents!) She can also see about making money in other ways... such as lessons. Either by becoming a Wilton Meathod Instructor, or by her own individual lessons.

But no, for cake decorating, the only legal way to do it is in a commercial kitchen. Not that there aren't folks who do it under the table. Just saying...

[revive]

Thanks for the responses... I appreciate it.

Since my wife does not have a steady flow of orders yet, it doesn't make sense to rent a shop / store / kitchen. But one thing comes to mind: we can potentially rent our church's kitchen whenever we have an order.

Is this an acceptable solution? What kind of kitchen equipments does the church must have in order to be considered "commercial kitchen"?

[Poltracker]

Originally Posted by revive

Thanks for the responses... I appreciate it.

Since my wife does not have a steady flow of orders yet, it doesn't make sense to rent a shop / store / kitchen. But one thing comes to mind: we can potentially rent our church's kitchen whenever we have an order.

Is this an acceptable solution? What kind of kitchen equipments does the church must have in order to be considered "commercial kitchen"?

Check out the link to the TFER I listed above. That lists all the rules for food establishments. Wife will also have to attend a Food Manager Training Class.

[City Love]

I'm not sure of the legalities of food preparation, but one thing is for sure, there are LOTS of people doing what you have planned from home.

[descovy]

Originally Posted by City Love

I'm not sure of the legalities of food preparation, but one thing is for sure, there are LOTS of people doing what you have planned from home.

Very true to what City Love has said. but getting big (and attracting attention) will bite you in the butt. Great for a small little thing on the side for mad-money... but be careful getting too big.

Don't count on renting the church kitchen. I don't think that is working for anyone legal either. It likely doesn't have the mandated requirements (code wants a grease trap at the same capacity of a fast-food restaurant!) or even more likely, renting the kitchen out could mess with the church's "non-proffit" tax status.

Not trying to burst your bubble... but if it could be done legally that way a lot of us would. Unfortunately it isn't going to happen in TX. Like I say, many decorators are happy to do it on the DL... by family/friend word of mouth (although that DOES carry risk), do it for the pure sake of hobby (gifting) or paid work in another avenue... either teaching or decorating for a retail bakery. Those are the realities of wanting to be a cake decorator in Houston & surrounding areas.

[pdouglas]

Be careful with the church kitchen. Maybe 6-8 times a year we have church fund raisers in which we prepare "suppers, dinners or fish frys" for donations. Whenever, we do this, the food inspector stops by and inspects our kitchen. It'sa like the man drives around and is constantly watching.