Ok its another long one so bare with me. I started making and selling cakes before I did all my research and found out I was doing it illegally. So I decided to stop taking new orders and just fill the ones I already had. Well I still have some cakes due at the end of Nov and in Dec but I really don't want to do them. I feel that every cake I do is just asking for trouble. So what do I do, if I cancel on them they should have more than enough time to find another baker, I'll even forward my designs to the new baker. They are b-day cakes, 20-40 servings so not wedding cakes or anything to huge. I'm just paranoid and don't want to get in trouble.So should I cancel or just bite the bullet and do them?
Also I removed all the pricing info and anything that might indicate that I was selling my cakes but yet people still email me , 6-10 a day requesting cakes, which if I was legal would be great , but I'm not. So what do I tell the people that want a cake, I plan on getting legal within the next year so I don't want to spread the word around town that I'm not. Should I just tell people I am not excepting any orders at the time? My mom said that would suggest that I am selling cakes, just not at the moment and that could get me in trouble . I don't want to cancel my site I am proud of my work and I don't think there is anything wrong with wanting to show it off.

I would post on your website a "coming soon" sign with a simple explanation that you are in the process of becoming licensed and will take orders when that process is complete.
As far as the orders you already took...since they are little ones, I'd call them to let them know that your license is not complete and that you will have to cancel their order. If they were big Wedding Cakes, my answer may have been different, just because that is a little last minute to cancel on a Bride (since Wedding Cake orders are usually done with more notice). JMHO

i agree with hsmomma. post something on the website saying you are in the process of becoming licensed, and you will post a notice when you are. for your current orders, i would call some local bakers first and ask if they mind you passing on customers, if they have the time to take more orders (you don't want to tell your customer to go there only to find out they're booked solid). then recommend your currently booked cake customers go to the other place. sorry you had this set back!! good luck on getting legal and licensed!

Another option for your website is to put "booked until (date)". You wouldn't have to fulfill any orders during this time, but it will give the impression that you are high in demand, which is a good selling point once you do become licensed. No one has to know that you aren't licensed, especially if you won't be filling orders anyway.
Good luck to you on the licensing process...I will be there one day, but until then...well I won't say