So I rec'd some great replies a while ago about the process for starting a home based cupcake biz. Can anyone answer this one though.....since I expect to start REALLY slow...as in a 'on the side' biz where I really only expect 1-2 orders per month MAX, can I get licensed and insured, create a website/biz name, but hold on the whole inspection thing as I want to really wait and see how it goes before commiting 100%? Also, at what point do you need to let the IRS know that you are a biz? Right away, or do you have to bring in a certain amount of $? I guess what I am trying to convey is that this is going to be a very small home based thing on the side and not sure what the minimum amount of things I HAVE to do to be legit/legal.....

I think it is totally going to depend on where you are, what the regulations are for your area, etc. Talk to the licensing people. I doubt you can get licensed or insured without being inspected.

Licensing is generally a *result* of the inspection. They are two separate activites, but totally connected.