This is a topic that has been discussed many times on several forums, which is why perhaps you haven't received many replies yet. I am also in NYC, the Bronx to be exact. Unfortunately our laws vary by county but generally if you live anywhere within the 5 boroughs home baking is not allowed if you intend to sell to the general public. This would require a 20-C lisence along with a commercial kitchen complete with proper venting, sinks, grease traps etc... However if you would like to start with selling at farmers markets, or to grocery stores, or other businesses The Dept of Agriculture would control this. The good news is, if this is what you intend to do then you can get a home food processors exemption, here's the link for more info.
You would need proper labeling and a kitchen inspection but you would be 1 step closer to your 20-C.
Once you have enough capital you could consider renting a commercial kitchen to help you get fully licensed and insured. I know all my info may not be a complete list but it really is a run around when you are in NYC due to zoning laws etc...
Here's what I found in another thread and pretty much the same info...
"After many discussions with the dept. of agriculture inspector and the Depot. of Health inspector this is the info I received.
NO HOME BAKERY IN NEW YORK CITY.
Home processors in NYC don't need a license as long as you are selling to markets, deli's or supermarkets, grocery stores. You need nutritional labeling, UPC barcoding and your kitchen has to be inspected by the Dept. of agriculture and you need to be zoned correctly. You must use your own equipment. No seperate kitchen necessary. You will also need approved packaging. You need to get a food safety certificate. No making of creams or custards of any kind.
You cannot sell directly to the public.
Selling directly to the public is classified as a bakery.
This is classified as a bakery even if you don't have a store front.
In order to sell directly to your customer who wants a birthday cake or custom made wedding cake you need a article 20-C license, food safety certificate, general liability insurance, register your business as a DBA and you have to rent a commercial kitchen. If you are a sole proprietor your SS# is your tax ID. You must file taxes at the end of the year."
Good luck and I hope this helps