Keep Your Home Based Cake Decorating Business Legal

All businesses are subject to certain legal requirements, whether they are a small enterprise like your home cake decorating business, or a large multi-national corporation that operates in a lot of different countries. Different regulations apply to different businesses, so let’s take a brief look at some of the things you need to be aware of and plan for.

The Taxman Whatever type or size of business you run, you will need to deal with the tax department sooner or later. I strongly recommend sooner – it is far better to find out in advance what you need to do regarding tax, instead of having to play catch up, because you can be certain that at some point the taxman will catch up with you. If you are generating income of any kind, it is subject to tax, and although the regulations and requirements are different in every jurisdiction in the world, the basic principle is the same – the government wants their cut, and they will have it.

There is no avoiding this – you may get away with it if you are only doing cakes for the occasional family function – but if you are serious about running this as a legitimate business, it is vital to gather all the relevant information before you start, and adhere to their requirements. It is in your interest in the long term – if you are paying tax on a home based enterprise you will find that many things are tax deductible, like rent or mortgage payments, electricity and telephone costs, and many other things that you may not think of as directly connected to the business.

Believe it or not, most tax departments have people who are only too willing to advise and help you with setting up a business. In my own experience the guy I talked to even told me about a lot of things I was not aware I could claim as deductions. But be warned – most tax agencies have a range of penalties that they will apply ruthlessly if you try to avoid or con them. It is not worth it in the long run – check the bankruptcy notices in your local paper and you will find that a large percentage of these are instigated by the tax department. Who would want that? If you keep accurate and up to date books, even a random, surprise audit should not create any problems or delays in the running of your business.

Health Regulations Cake decorating is part of the food industry, and as such is subject to health department regulations. It is imperative that you find out exactly what you can and cannot do in your home kitchen – the rules vary widely between local, county, state, and national jurisdictions, and these rules are enforced as strictly as tax laws, if not more so, because they pertain to public safety. Broadly speaking, food that is prepared for sale must be prepared in a registered and inspected kitchen, but in the case of cake decoration, you will find that there is quite a lot that falls out the strict definitions.

Some authorities allow certain types of icing to be prepared in a home kitchen, but not some of the more perishable ones, like buttercream for instance. Some will only allow decorating, but not baking, in which case you will need to source your cakes from an established bakery, or rent space in a commercial kitchen if you wish to make them yourself. Like tax regulations, it may seem daunting at first, and a little restrictive, but if you do your research and take advantage of the help provided by these departments before you get started, you will find that a lot of it is just common sense, and with a little experience it will become second nature. The important thing is to work with the system – not against it.

I hope you have found these suggestions helpful, and are not put off by the thought of all the red tape. Modern governmental agencies are usually fairly efficient and helpful nowadays – remember that your success is in their interest too – and keeping on top of this stuff from the beginning will then leave you free to do what you really love – making and decorating cakes that will wow everyone, even the taxman.

Starting a Cake Decorating Business

Children as well as adults just love to have cakes and eat them too especially on special occasions. However, people know that today, they are quite expensive and some would just make it by themselves. Those who have some enterprising spirit may take on this as a cue to think of starting a cake business. People who have some creativity can take baking as well as cake decorating classes before they venture out in the decorating business. The more creative they are, the better it would be for this type of business as people from around the world buy this as gifts and as part of celebrations.

Those who would like to start may get orders from their friends and from their families first in order for them to gain experience and the confidence to offer their products to other people as well. A home decorating business may be a good way to start as it can provide the necessary venue for the preparation of a larger business in case people would really like to get their business rolling.

Materials for Baking and for Decorating Cakes

*Different sizes and shapes of baking pans for cakes


*Cake Mixes or they can also prepare their own


*Cake Decorating Supplies (Rose Nails, Bags for icing, Rose petal or leaf tips, cake boards, boxes and other cake decorations)

These materials are good for those who are starting a small cake decorating business at home. People who would like to do some professional decorating business will need more materials and equipment depending on the type of cakes like wedding cakes as well as the type of customers that they would cater to. Those who would like to build their cake business have to take photos and make descriptions of the cakes that they have baked and decorated. They can make use of these when they start offering their products and their expertise on cake decorating.

The cake decorating business can be a rewarding venture and an excellent way of expressing creativity. People who enjoy such activities will have more chances at succeeding in this business. People may earn a good amount of income even if they would only cater to their family and their friends’ orders. Cake decorators or designers will always have customers especially if other people are satisfied and are happy with the beautifully decorated and delicious cakes that they have ordered.