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Unread 08-26-2013, 11:40 PM   #3
bizznessman
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Join Date: 03-20-09
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Welcome aboard Brother!!!!

1) Work up a business plan detailing all of your expected costs and estimated revenues. Decide what type of service your will offer: onsite cooking, catering, what size of events, minimum orders, etc, etc, etc. Do this before you go any further to see if you believe the business fits your goals and expectations.

1) Contact your HD (Health Dept) to find out what you need in order to be in compliance with food service regs. In KS you will need to prepare all food in a certified commercial kitchen, either your own or one you rent. If you decide to go the route of your own kitchen you will need to obtain a food license. The cost the first year is $400 ($200 application fee + $200 first years fee), and then $200 each year after to renew. If you decide to rent kitchen space/time you can expect a varying amount. Here in our area of KS (Western) it runs about $100/hr.

2) Procure business insurance. a) Food Service Liability Ins: Check with your personal insurance agent to see if their company offers these policies. If not there are a number of insurance companies that specialize in food service liability insurance. Normally around $1K/yr for 1MIL coverage b)General Business Ins: To cover equipment, etc, especially if you end up with a mobile trailer.

3) The LLC approach is a very smart way to go since it offers much of the asset exposure protections similar to a Corporation but allows revenues to flow through at your personal tax rates. This will help to protect your personal assets from any possible legal issues involved with the business. In KS you are looking at around $500 to form an LLC.

4) Obtain a Sales Tax ID for reporting/remitting sales tax to the KDOR.

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The items above are just for starters. Remember, you are starting a business...not a hobby. This link is a good starting place. LINK

We were in the same position as you at one point. Do we expand or not. We decided to go for it. It is a side business for us and it has paid for itself with a little bit left over for "profit".
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Last edited by bizznessman; 08-27-2013 at 12:15 AM..
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