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How to Start a Baking Business from Home

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You love baking. You love creating delicious treats and seeing your recipes come to life. And the more you bake and share your passion with others, you begin to realize, “maybe I could make this a business.”

So, do you find yourself asking that question? Are you ready to take the leap? Are you ready to start your very own baking business from home?

You have the passion, you have the mouth-watering recipes, but where do you start? They say starting is sometimes the hardest part, that is why we have created a step by step guide on how to start your very own baking business from home. From legalities to bakers insurance, we have you covered in our guide.


  1. Research the laws and regulations associated with a home-based baking business

    If there’s one thing that we have learned from the past year, it’s that working from home is a very feasible (and sometimes more affordable) option for business owners. However, home-based businesses face unique challenges. It is important to understand the laws and regulations surrounding your business.

  2. Obtain the licenses and permits needed to operate your business

    When starting your baking business, the last thing you want to do is forget all the important legal details. That could cost you time and money. If you don’t know where to start the licensing and permit process, try giving your local city or county offices a call. This may not be the funnest or most exciting aspect of starting your business but it will save you a lot of stress in the long run.

  3. Obtain a sales tax permit

    Do you plan on selling your delicious confectionaries? Do you need to collect sales tax on your desserts? Well, if you are, obtaining a sales tax permit should be at the top of your to do list.

  4. Create an LLC

    What is an LLC you may ask? Well, an LLC, or business entity, protects your business from a lawsuit if something happens to go wrong. It allows you to own and operate your business.

  5. What treats do you want to sell?

    Now here is the fun part! What treats do you want to sell? Do you specialize in intricately decorated cupcakes? Or do you dabble in a bit of everything and bake up a storm of cookies, cakes, and brownies?

  6. Purchase separate cooking supplies

    You’ll be whipping up a flurry of desserts, so it is important to have supplies and equipment that can keep up! And for tax purposes, it’ll help to have business-only designated baking equipment.

  7. Protect your business with Bakers Insurance

    You have your business all set up. The treats are baked and you are an incredible business owner, bringing joy to your customers through your delicious treats. Business is going great until boom! Someone gets sick from your baking! Or, oh no! Your brand new hand mixer just broke and you have orders that need to be filled!

    With so many things that could go wrong, bakers insurance should be the first item to be checked off your list. Don’t wait a second more and protect your business. It can sometimes feel overwhelming, but this business is your life and passion project and it is so incredibly important to protect it.

    Here at FLIP we offer low cost insurance that protects your baking business from the hazards of everyday business. Our coverages include general liability, product liability, inland marine, damage to rented premises, cyber liability, and workers compensation insurance.

    Common insurance claims can include a customer getting food poisoning, stolen or broken equipment, or a cyber security breach. Claims can happen at any moment and it is important to be prepared for when they do.


If you’ve been thinking about starting your at home baking business, now is the perfect time to take that leap! You have a passion and your baked goods are delicious. It’s time to share that with the world!

So, protect your business with baking insurance and start living your dream today!
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