I did a search a few months ago on Maryland, and I'm pretty sure you could not sell cakes from your home. However, now I can't find that information, so I could be wrong. Here are a couple links that may help, though.
http://www.blis.state.md.us/faq.aspx
http://www.blis.state.md.us/whoshouldicall.aspx
Good luck!
According to the site below (which is by no means authoritative), DE does not allow commercial home baking, and a MD bill that would have allowed it died in last year's session.
http://www.texascottagefoodlaw.com/Facts.htm
I found this quote on the University of Maryland's Website for food processing regulations:
FDA and USDA food safety regulations apply to baked goods. Baked goods may be considered hazardous or non-hazardous depending upon specific ingredients. Licenses may restrict recipes, or conversely, specific recipes may require specific licenses Bakeries are food processing facilities licensed by DHMH. The license may be restricted to processing only certain types of foods based on the facility capacity, equipment, and design. Home kitchens and on-farm processors may produce only non-potentially hazardous baked goods include baked cakes, muffins, or cookies with a water activity of .85 or less, and fruit pies with an equilibrated pH of 4.6 or less. Baked goods produced in a home kitchen may be sold only at farmers' markets. Baked goods produced under an on-farm home processing license may be sold at any venue in the state.
http://mredc.umd.edu/FPRulesForSpecificFoods.html
Apparently, if you're a farmer, you can sell from your home kitchen:
On Farm Home Processing License: License issued by MD Department of Health and Mental
Hygiene (DHMH). Must be a farmer and sales must be less than $40,000.00 annually. Allows the
processing of some products in a home kitchen. Cost - $30.00
http://mredc.umd.edu/Documents/Value%20Added%20Products/ProcessingAndSellingVAFinMD.pdf
I have the FDA licensing information in front of me now. FDA approval is required for international shipping, etc. Their requirements are similar to the local health dept. FDA information in Maryland is obtained through the state dept of health. I live in Maryland and West Virginia. It is my understanding that you can have a kitchen, but it must be a separate structure. I am approved in Maryland by providing them with my WV licenses because that is where production take place. I am subject to inspections by MD, WV, and FDA. When I sell in Maryland, I must comply with all of their additional rules. WV required me to go through full commercial kitchen certification, just like a new restaurant. Maryland added additional packaging, labeling, and transporting requirements. I have all contact names for all Maryland certification if you want them.
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