Ok so here is what is going on. The inspector called and she is coming out next friday and is bringing some papers and will do the inspection. I have to have hot water, a working bathroom, hairnets, and gloves. She said I can do pies, cookies and cakes but not wedding cakes. I dont get that one. Also I cant sell on the internet. I dont know what that means. Does that mean I cant have a website with my pictures and info? Or I cant sell like on a paypal account. I have so many questions. She also said that I will be tax exempt. So I am happy about that. I want to thank all of you oh here. Because of so many debates about being legal I decided to be brave and find out if I could be legal. It was really easy and painless. It only cost me $37! I also have to have labels and packaging ready. BTW the name of my business is A Little Piece of Heaven. What do you guys think?
Good for you!!
and
I love the name...
Going to New York for the first time this fall, after the Bakery Expo! I am very excited.
I mean, what's the diff between a 3-tier birthday cake and a 3-tier wedding cake?
, and so glad it was easy and painless in NY, I only wish CA were like that! 
Oh, and I love the name. Congratulations.
Maybe the wedding cake thing has to do with the larger "exposure", thus the increased risk? It does seem weird, though. But then, again, I live in Louisiana so you'll be hard pressed to tell me something that will surprise me. 
And the internet thing...Huh? As a website content manager I get really frustrated because here were in 2008 and some old school institutions still don't accept it as a mainstream means of communication. Can you sell cakes over the phone, on TV, in the newspaper, on a billboard? To a fox in sox sitting in a box?
I for one am very interested in hearing about why you can't sell on the internet. Grrrrr...
Guess What? The inspector came out today and my housed passed inspection! I am open for business. Well sort of. I can sell, cakes, pies, cupcakes, cookies, sweet breads, brownies, and muffins. I'm so happy. Still can't do wedding cakes. She said it's a new rule and they say no to wedding cakes because they cost so much and that is a whole different market. Oh well I'm happy anyway. Thanks for everyone's support. Now I dont feel so bad about baking out of my home because I'm legal.
Congratulations and good luck!
By the way, any more insight about why you can't advertise on the web?
Congratulations! How exciting! I too am in the process of becoming licensed. I've submitted my paperwork...and am waiting for the call for the inspections. I knwo here in Utah, you cannot sell things interstate online...I wonder if that's what they meant? I can't see how they could tell you not to have a business website for your clients or potential clients to see your work?
As for the wedding cakes...strange. 
Best of luck to you!
Keyshia
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