Gawd, Oregon is easy.
All that's needed here is an inspector to come and evaluate your kitchen... be it a separate building, second kitchen, or - lucky me - your only kitchen. Got to meet sanitation requirements, which are basic, and maintain a second fridge/cabinet for bakery-only storage, which can be in a garage as long as there's no contamination risk from pesticides/chemicals.
And, under $5k in profits, the license is only $75 per year.
Let's see... Oregon doesn't do sales tax/tax ID licenses/resale license #s, only business licenses if you're operating underneath an assumed name. If you're not, then you don't need one, oddly enough. Oregon has a standing exemption - here, if you're dealing with a company that says that they need a resale ID #, they can kiss off 'cause we don't have them here.
All you have to do is report income to state if it's over something like $3k. I don't know, I haven't had to file taxes in years, being unemployed and then a student and all.
Of course, (insert generic disclaimer here), so take my $0.02 with a grain of salt.