Blogger Articles: You are also limited when it comes to getting business. You cannot advertise such a business. Most states and municipalities have health codes when it comes to selling food from your home. You will need to have a license and, in most cases, a separate kitchen where the cakes are made. The kitchen will be subjected to health inspections periodically.
If you want to have a large cake decorating business and see yourself as a true artist, you can work outside of your home. You may begin with selling cakes to neighbors, but then add a kitchen so that you can bake in your home with a license. You will also have to make sure that your municipality will allow you to work a business out of your home.
Once you have a business license, the next thing you should do is incorporate your business. People rarely get violently ill from cakes, but butter cream, if left out of the refrigerator, can cause salmonella. You do not want to risk someone suing you and taking your home, so incorporate your business. A corporation is a separate entity. As long as you practice your business under the corporation, you cannot be sued personally if something goes wrong.