Yesterday I posted the topic about contacting my local health department (in oklahoma) and they told me that it is not legal to sell food that is prepared out of a residential kitchen. Well, I talked to him again and told him that I'm not looking to start a business or open a full-time bakery, but that I just wanted to do a few cakes a month and I asked for clarification on this because there was just no way I could justify spending that much money to build a new kitchen for something that is just a hobby. He told me that there was a way around it and that was just not to tell him. 
He said as long as I am just baking on request for people that I know and not advertising or setting up displays, then I should be fine. And the way to get around the money aspect of it was to just say they are paying for the supplies and then they gave me a tip for doing the cake.
I did ask him if I was opening myself up to some legal trouble if someone said that they got sick from one of my cakes and he said yes, but if I just do it for people I know and trust, then I should be fine. But, if I start taking orders from strangers, then I am opening myself up to possibly having some problems.
This makes me so happy! Yesterday I was so down because I thought I wouldn't be able to do cakes for anybody, but now I can do exactly what I was wanting to do! 
That jives with what my health department told me -- friends and family only, no strangers or "friends of friends". I have a license now but I will be dropping it at the end of the year and going back to family and friends only. They keep me pretty busy anyway 
Glad you got some reassurance! Happy caking
Good for you for getting more clarification!
And I'm so glad you got someone who was willing to talk to you on a "realistic" level!
Have fun baking!!
I've heard that same thing before in my area, and I just don't see how that can be possible. If you are receiving $$ for a product/service you are a business regardless of if they are your friends or not. Plus, there is the whole tax issue as well (sales tax and income tax).
Just be careful - a friend may not be a friend if they get sick from your baking (not likely but a possibility). And that health dept rep will never stand by what he told you over the phone. You will be on your own.
When I called my health dept. she said I could bake for family, friends, and friends of friends. Then she said, "just be careful who you take your money from, it could be one of us".
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