Thank you for the great advice!

1,103
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Joined Jun 14, 2002
Lol, U trollin'?

I applaud your guerrilla tactics, but home baking for money is a cardinal sin. Plenty of discussions on that in this forum.

Your formulas cost <$0.60 pp?

There are more licenses then health licenses. Remember all those kids' lemonade stands that got shut down in PA because they didn't have a business license? That could be you, especially if one of those people you're undercutting tips them off. Also you may have to collect sales tax depending on your jurisdiction. Sales taxes are trust fund taxes, and it is seriously bad to mess around with those. There are also local business taxes. In my town, there is an exemption for the first US$500,000 in cash receipts, but if you don't file the paperwork properly, you lose the exemption and are stuck with the minimum tax.

Additionally, I think at this stage at your career, your skill and career development would be better served with a job working for someone else. Even if it's on the savory side.
 
5,192
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Joined Jul 28, 2001
NJB,

I would charge very little over cost so as to bring the customers back. You overhead is nill, I'm expecting. Maybe even give some away at the garage sale.

You will make more on the first few orders then you will for the whole garage sale.

Please make sure you have everything in place before selling.

Make sure you have some sort of liability insurance.

Health permits and sales tax certificates available.

Your product stored in an approved container.

I've learned a little about cottage laws in different states.

I'm pretty sure that your state alows gross annual sale no more then 12,000.

Please seek some tax guidance.

You will be considered self-employeed. You must file federal income tax on any income over 400. annually

You'll owe Federal, Medicare, and Social Security. You will have to set up an account on line with the Federal website.

There you attach a bank account and then you just transfer over tax payments on line if you might owe.There is also Federal Unemployment which is small and may not effect you.

Something to watch. A tax person may tell you, you are a dependent and won't owe taxes until you exceed 5-6000.

If you have put your name any of your legal documents ie. sales tax, healt permit etc. You might get nailed. I don't know how they get the info but I know it;s happened.

If you are blogging and website etc. Copy all yor permits and lic and put them in a folder when ever you do a public function like this. You might be surprised what competition is capable of.

I know I didn't answer your question but I just wanted to look out for you.

Good Luck,

Jeff
 
3,401
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Joined Sep 18, 2008
If you don't want to do what Jeff said, for goodness sake do NOT blog, write, or tell ANYONE!

If you put anything on the internet, whoops, you already did! Better follow Jeff's advice, the "powers to be " are already aware of your activities.
 
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Joined Feb 17, 2010
Don't mess with good 'ol Gov Gregoire....she's going to want her 8.some odd % sales tax.....
 
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Joined Jun 16, 2011
Thanks for the great advice, you guys are very helpful. I will stick to handing out baked goodies for no profit to get to know the neighbors, and be social, seeing as we do not have anything to sell at the garage sale. Again, thank you for letting me know the red tape, I appreciate it. Sounds like a bit too much of a hassle for a block party. 
 

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