Cooking business from home...

[newbee]

Hi all,
Just after some advice...
I am looking at starting up a business supplying home baked food to a cafe (i have met with them and looking to commence in the new year).
A couple things that I'm uncertain about...
1. As I would be cooking from my home, do I need to have a food handling course certificate?
2. What kind of insurance would I or the Cafe need in the (hopefully never happens) case of someone falling ill from the food?
3. It wouldn't be massive earnings, how much can you earn before you have to declare it, or do you have to declare it even if it's only like a couple hundred profit? (I was told anything under 4k is classed as a hobby?????)

Thanks heaps...
Newbee

[v2Media]

Hi newbee. Welcome aboard.

1. The laws change from state to state, country to country. Start with the state government website in your country.
2. As above.
3. There's no simple answer. In Australia, the ATO helps you to answer this question here: http://www.ato.gov.au/youth/content....tent/66884.htm

It would help a lot if you made it known where you're from and which country/state you'd operate the business in.

[JakeThomas]

Mark is right with 1 & 2 - this varies state to state.

With the third, my understanding is it's based on your intent with the business. Do you plan on running a hobby or a business? If the latter, then I believe everything must be declared.

[v2Media]

Unfortunately it's not that simple Jake. My wife spends 30hrs a week running her business. She has an abn, stationary, the whole 9 yards. But because her business doesn't generate more than 20K, it has been assessed as a hobby. Each year her business financials are handed over to the accountants, and each year her business doesn't qualify.

It really is a case by case scenario with no abc 123 answers.

[JakeThomas]

Ahh, thats interesting to note - I remember when I started one of my current businesses a few years ago, I was speaking to the ATO and they said it relies on intent. Thanks for clarifying.

[newbee]

Thanx for the replys...
I am in Adelaide SA
I don't think itd be classed as a business as I'm only going to be supplying cooked goodies to one small cafe... The earnings won't be much...

[v2Media]

Earnings are beside the point really. Your sales or gross incomings are what matters. If you do 30K in sales and your overheads are 35K, you loose 5K but are still classed as a business.

[v2Media]

Public liability insurance for speciality foods probably what you're looking for. There's certainly policies that cover what you need.

You may want to consider renting a space in a shared commercial kitchen instead of operating from home. Getting approval is probably a lot harder at a residential kitchen than a commercial one that the safety inspectors are familiar with.

You may also have to do a govt. approved food safety course.

[AshleyWhiteBusiness]

Yeah. I have heard about that public liability insurance. There are lots of things to be settled specially if you wanted a business about food. The government are strict about it.

[OhMyGosh]

Thanx for the replys...
I am in Adelaide SA
I don't think itd be classed as a business as I'm only going to be supplying cooked goodies to one small cafe... The earnings won't be much...

I'm also in Adelaide, and in the process of looking for a commercial kitchen. You will need to abide by local council health & safety guidelines, and trust me when I say that working out of your own kitchen probably won't be encouraged, if my experience is anything to go by. We actually bought a new house, with the intention of using the kitchen solely as a commercial kitchen for upto 12 months until we got going.....council stopped us dead in our tracks, despite being happy work within their guidelines. Not sure why, but they did actually threaten legal action, etc, etc.
I'm actually new to these forums, but am tossing around the idea of sharing kitchen space if conditions/times etc are conducive. Not sure if it would be against forum guidelines, but I am happy for you to contact me if you think it might be an idea you may be interested in, depending on location ofcourse.