How to Start a Catering Business in Maryland
The catering business can be quite lucrative for an entrepreneur who has a passion for food. For events ranging from weddings to company picnics to retirement parties to traditional crab bakes, a quality caterer can find many business opportunities in the state of Maryland.
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Instructions
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Navigating the Corporate Law Menu
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Forming a corporation allows a business owner to keep a separate set of books apart from their personal finances. Some of the advantages to forming a Maryland corporation include: limited personal liability if the corporation is sued, the ability to deduct large amounts of equipment and food costs against the business rather than personal assets, and paying only a 15 percent tax rate on the first $50,000 of profit that the business shows in a fiscal year.
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Obtain a business license from the state of Maryland that will allow you to operate a catering business there. Application can be made online, by visiting the Business License Information System on the state of Maryland's official website (see Resources below). Some of the information required in order to obtain the license include registering the name of your business (which can't be the same as another business within the state), providing personal property tax information, and checking county and town zone requirements to make sure the new catering business will meet their ordinances.
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Obtain a liquor license from the state (and locality, if required). Many catering companies make a large profit on the alcohol they serve to their guests. The cost is relatively cheap and the mark-up is high. Part of the application process will include giving personal information, such as social security numbers of the partners, the federal ID number for the business, and the business location
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Rent commercial kitchen space that will give you enough room and equipment to fulfill your catering assignments. Commercial real estate agents can help you find suitable space. Negotiate favorable terms such as low overheard and a short rental agreement as you get the business off the ground.
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Buy commercial kitchen equipment and food supplies. Work with commercial kitchen equipment distributers and food suppliers within the state of Maryland so that you can conveniently stock your kitchen and pantry shelves.
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Hire capable and trustworthy culinary staff to fill positions such as chefs, waitstaff, bartenders, decorators, and cleaners. o operate the catering company. Contact culinary schools in Maryland to find staff who are trained in the field and who are eager to have a successful career in the food industry.
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Advertise your Maryland based catering business. Because catering is usually provided by a local company, hire a Maryland based public-relations agency who will help you advertise in area magazines and radio and television, and advise you on new media like websites or social-networking sites. Also attend bridal shows and job fairs to let potential clients know about the Maryland based catering business you just opened.
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References
Resources
- Photo Credit shellfish image by Mat Hayward from Fotolia.com
