Most states require that food sold to the public be prepared in a commercial kitchen. You can find out your state's requirements by contacting your local health department. If you must prepare the food in a commercial kitchen, many churches and senior citizens centers have them and will rent out their space. You might also be able to use a caterer's kitchen during their off hours.

It appears laws for this can vary from state to state. I suggest taking a look at this discussion about a home based cake business. I also suggest taking a look at the Food and Beverage Industry pages on Business.gov. I hope these suggestions help! Good luck!