I am just wondering if anyone can sell cakes.. Can you just put ads out and make cakes for anyone or are you going to get the government after you? I would like to start selling cakes sometime, but I'm scared to start because I dont know if I"ll get it trouble for it! Do you have to get your kitchen inspected? I see so many people on here selling cakes and I'm asuming they dont all have the stainless steel countertops and such...
You need to check with your state and city to see what the requirements are to sell baked goods.
Here is a link to get you started, look for your state:
http://www.cakecentral.com/article57-US-Wanting-to-start-a-Cake-Decorating-Business-but-where-do-I-begin.html
Regulations vary depending on the state you live in and sometimes even the county. Unfortunately, according to my records, Wisconsin is not a state that allows you to sell home-baked goods. Call your county's health department for more specific information. They could tell you that it's all right to bake for friends and family and word of mouth, or they can help you find out what you need to do to become licensed.
Every state has different laws re: home bakeries.
This thread might be helpful for you:
http://forum.cakecentral.com/cake-decorating-ftopict-32550-wisconsin.html+kitchen
That being said, many many people bake and sell without being "legal".
Depends on where you live and the law there, check the state agricultural site for your state. I'm in Ohio and we are allowed under something called the cottage law as long as it doesn't need refridgeration. We can post flyers, adds in papers now I checked into putting up a sign in my yard and I live rural and the county doesn't want it commercial so they say no sign in the front yard. Poo, how can people in the woods know I'm here without a sign? Anyway , my flyer at Drugmart seems to be working fine. Good luck!!!
My state says I can put up a sign "attatched to my house," no bigger than 4 squarefeet. I think there was a $25 sign permit fee. (I could be wrong about that, I talked to so many people about so many different things all in one day, kept getting transfered too!) No signs in the yard. Keep diggin' you'll find answers!!! 
Be sure to call/contact all those listed above. Another place you may be able to find out more is the Planning and Zoning Dept.
Don't give up, it takes a little bit of time to research!
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