From what I understand, In Georgia, to be legal you have to have a seperate kitchen with a seperate entrance. My uncle converted his shop into a small apartment for his mother-in-law. Its basically three rooms. A bedroom, kitchen/living room area and a bathroom. She passed away about a year ago and its been vacant since then. He knows that I've been wanting to get a business going (all I've done so far is make cakes for family) and has offered for me to use the shop/apartment. He would put in a grease trap and 3 compartment sink for me. Do you think this would be something the health department would approve of?
I'm not sure about GA rules and regulations, but why not just call them and ask what you'd need to do to make a legal/health regulated business? I actually called my health dept the other day and they were very helpful. Just tell them your thinking of starting a business and would like to know what steps/procedures you'd need to follow to be in good standing w/ them.
Call and ask your HD. It may be ok or you may need to convert some things so it is alright. Such as bedroom will be a storage room now and so on.