Selling meat questions

DMDon · Oct 20, 2008

I know this has been discussed in the past, but I wasn't able to locate what I wanted on the seach. I've done some small cooking gigs for friends, family and coworkers. Basically I have always done them for my costs, just to practice and because I enjoy cooking. Now I am to the point where I am getting more and more requests. I limit it to just meat, they are on their own for sides and drinks etc. I am going to buy the meat, cook what they want and then sell it by the pound, but now it will be for profit. It won't be alot, maybe a couple times a month. What I really need to know is, to limit my risks what do I need to have in place? Can I do this out of my home? I not catering, but rather selling cooked meat. Do I need to have the health department involved? What types of insurances should I have in place? And at what time does someone incorporate or form an LLC. Any information on items I should as think about, that I am forgetting, would also be appreciated.

drsmoke · Oct 20, 2008

I hate to tell you this but there are many hoops to jump thru if you want to cater. Your local health dept. will fill you in.

bbqbull · Oct 20, 2008

drsmoke said:
I hate to tell you this but there are many hoops to jump thru if you want to cater. Your local health dept. will fill you in.

Also check with your insurance agent about risks and liabialities.

DMDon · Oct 20, 2008

drsmoke said:
I hate to tell you this but there are many hoops to jump thru if you want to cater. Your local health dept. will fill you in.

So, is this considered catering? If someone wants me to cook them 12 lbs of brisket for a tailgate, I make two weeks ahead of time, freeze it and they come pick it up and pay me $100. I know teams that sent out emails advertising specials or packages they have. The people preorder and then they come pick it up on a certain day and pay for it. Is this considered catering? I'm not looking to avoid the insurances needed and will report the net profit to the IRS. But I would like to keep the health department out of this if I can. Mainly because someone told me you can't do this out of your home, I would need a seperate location. Is this true? Its like the lady that makes the wedding and birthday cakes out of her home.

Bossmanbbq · Oct 20, 2008

DMDon said:
So, is this considered catering? If someone wants me to cook them 12 lbs of brisket for a tailgate, I make two weeks ahead of time, freeze it and they come pick it up and pay me $100. I know teams that sent out emails advertising specials or packages they have. The people preorder and then they come pick it up on a certain day and pay for it. Is this considered catering? I'm not looking to avoid the insurances needed and will report the net profit to the IRS. But I would like to keep the health department out of this if I can. Mainly because someone told me you can't do this out of your home, I would need a seperate location. Is this true? Its like the lady that makes the wedding and birthday cakes out of her home.

No offense Bro, but I think you already know the answer....Bottom line if you want to do it LEGAL your catering and need to follow your health department guidlines so your not in trouble.
Its frustrating to me as well, I have friends doing catering jobs out of their homes under the "Personal Chef" blanket and here I am playing the game the way I'm supposed to while they try short cutting and making money.Bottom line all that needs to happen is one person get sick and sue or some competition in your area finds out that your moving in on their clients/business and they turn you in.
Its not worth the trouble doing it without being legit and wait for the MAN to come knocking on the door. Karma is a real thing and it will bite you in the A$$ everytime.
If its worth doing and your making scratch from it do it right and sleep well at night not worrying about getting in trouble for a couple of pounds of BBQ meat, just my thoughts

Mitch · Oct 20, 2008

Yup! Your catering. 1) Liability insurance. 2) Follow the health Code. 3) Don't freeze food your going to sell unless you have a commercial walkin that you can use chill pans to cool stuff fast and freeze fast.

WineMaster · Oct 20, 2008

Dont forget the Tax Man

Any thing sold for profit can be Un Reported earnings.

Desert Dweller · Oct 20, 2008

Unless you're gonna make a real living at this, it looks like a real pain in the arse to be legit. And you don't even want to contemplate the outcome of not being legit...

BBQ_Mayor · Oct 21, 2008

I've thought about this too Don but didn't want to go through all the hoops.
You might want to check on your home owners insurance. Since you are cooking out of your house you may be able to just increase your liabiltiy coverage for the catering thing.
As far as taxes, I wouldn't bother unless your making a ton of money. I think you can make up to $600 without claiming it as income, might be higher now.
After buying the meat, spices, pellets, sauces, labor, electricity,knives sharpened,gas,cleaning agents. Wheres the profit?

Smokin Turkey · Oct 21, 2008

WineMaster said:
Dont forget the Tax Man

Any thing sold for profit can be Un Reported earnings.

under $600 is non-reportable.

I can tell you a few things about starting a business as I did this in May of this year. I can tell you to get as many of your ducks in a row as possible. The more you plan and work at planning, you will align yourself to answer your own questions as they arise. You will know off the bat what you need to charge to cover all your expenses. You should always make conservative projections. (ie-figure you will over pay for materials, figure you will sell less or even get only partial payment from a customer) Over estimating what you will need to pay for will help you to become a success in the future.

My area has a small business incubator where they meet with you, help you to develop a sound business plan, do research into the venture, help find the start-up capital, and offer advice while you operate. This is free to the community and staffs some of the best minds in business.

As for becoming an LLC, I say do it before you do anything else. Register the name, get your paperwork (it takes an hour online and $250 for PA) you can't open a bank account in the business name without it. You also will need an EIN. Check out THIS WEBSITE it has some good info. I also recommend getting good business insurance. The general minimum to get coverage is $1million. Sounds like a scary number but it has been the minimum to show up at most any event.

That's allot to digest already. It truely is allot to do. It took me 2 years of research before I took the plunge but to be honest, I was on so much adrenaline, I didn't sleep for 2 weeks (maybe 2 hours), I worked at it 20 hours a day 7 days a week for 3 months before I took a day off and I still work at least 6 days aweek. It's what you need to be prepared to do for at least a year to get a base and pay the bills.

To quote myself in a recent newspaper interview, "Starting a business has been one of the scariest, most aggravating and thrilling things I have ever done...” And I have been to war and been enlisted in 2 branches of the military.

Good luck in whatever you decide.

Selling meat questions

DMDon

Full Fledged Farker

drsmoke

Guest

bbqbull

Watching over us.

DMDon

Full Fledged Farker

Bossmanbbq

is Blowin Smoke!

Mitch

is Blowin Smoke!

WineMaster

Babbling Farker

Desert Dweller

Babbling Farker

BBQ_Mayor

is Blowin Smoke!

Smokin Turkey

is Blowin Smoke!

Similar threads