Become a Home Baker

Following certain approved criteria, you may qualify to be a home processor in the State of New York, licensed by the Department of Agriculture.  This means, depending on what you make, how you make it, how you sell it and other requirements/criteria, you may be able to legally start your own baking business out of your home.

All requirements and restrictions are listed on the Department of Agriculture's website.  Once you review and determine that you fit the criteria and are able to operate legally, you will complete the one page registration form and return to the Department of Agriculture.

An assumed name is your business name, your Doing Business As (DBA) name.  For us, it is Kiss Me Cookie.

Once you have your name picked out, you'll complete the linked form below (for residents of Monroe County, NY), and return the form to the County Clerk along with a small fee for the legal right to use that business name.

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States for the purposes of identification.

If you operate as a partnership or LLC, or if you have employees, you will be required to register for an EIN.  If not, you will use your social security number on forms in place of an EIN if you choose not to register for one.

It is recommended you get an EIN, as if you'll want to open a business account, this is likely a required number for you to have.

Visit the IRS website for additional details and registration form.

A business banking account not only allows you to deposit checks made our to your business name, but also provides a place for you to keep your business income separate from your personal funding.  In addition, having a secondary business banking account for depositing sales tax collected is a great way to ensure you don't find yourself with a big sales tax bill without funds to pay for it.

You'll likely need an EIN to apply for a business account at your bank of choice, as well as any other documentation they require.

PRO TIP:  You can print your own checks with a supplier online.  We purchased our checks from Vistaprint, and paid about a third of the amount that the bank would've charge us for checks.  Banks typically have a big mark up on checks, and depending on your bank, and how many checks you're ordering, you may be able to save over $100 on your order of checks.

Cash and Check are easy enough, but if you'd like to accept credit cards, several options exist.

We've found that Square offers a simple, attractive, and easy platform built to charge customers in person, send electronic invoices, and integrate to various sites online.

Once you sign up, you'll receive a free card reader that plugs directly into your phone or tablet.  There are no subscription or annual fees, only a processing fee when you accept payment.

Visit Square for additional information and to sign up.

There are plenty of websites to use to get business cards, shirts, promotional items, etc., all vary by price and quality.

We've used Vistaprint for a number of our items, including business cards, shirts, branded merchandise and more.

We suggest Vistaprint as an "introductory to SWAG" website, until you find product that better suites your needs elsewhere.

There are multiple business structures that you can operate in.  Sole Proprietorships, Partnerships, LLC's and others.  There are pros and cons to each type of structure and you'll need to decide what's right for you.

If you're starting small and testing the waters, a sole proprietorship or partnership (if you're working with a partner) may be right for you.  This is a simple way to start doing business and typically does not require any additional paperwork.  You'll have additional forms to complete when you file your income taxes, showing additional revenue or loss from this business.

If you're concerned about liability, an LLC may the route to go.  As a home processor, you're limited to making foods that are generally considered "food safe", but that doesn't mean that a lawsuit cannot be brought against you.  An LLC is an entity that if sued, is separate from your personal assets.  Forming an LLC requires certain legal documentation that other structures do not require.

There are many companies that will assist you in forming an LLC, or you can file the paperwork yourself with the Department of State.  For more information, see the link below.

As a home baker, you'll be baking products approved by the Department of Agriculture.  As such, you're not likely to make food that is dangerous for consumption.  However, if you are concerned about this, you are able to obtain insurance for small businesses that cover you from damages incurred from situations like these.

Many home bakers use The Hartford Insurance for their insurance provider, but many insurers provide coverage for small businesses as well.