A few people asked how, so here's what I did...

On www.agriculture.state.pa.us there is a "guidance and requirements for home processors". this lists all 10 rules. The upshot is no kids in the kitchen when you are working, no pets (my inspector said keep them out of the kitchen and you are fine), you must have a letter from your town zoning authority saying you can have a home bakery in your town (they take a copy), a seperate place for all your work food, utensils, and pans, and have a check/m.o. for $35.
After I got the zoning letter, I called the the dept. of ag. and scheduled an inspection. the guy came 5 days later (quick service!). he checked my faucet to make sure I have hot and cold water, he used a temp. gauge to check that my fridge and freezer were cold enough, and looked at my baking closet. he spent the most time there. I had just gotten a box from a mail order company, and it was sitting on the floor inside the closet unopened. I was cited on my evaluation for having utensils on the floor and told to remove them within 1 week. so don't have anything, even unopened, touching the floor. we then sat in my kitchen for 45 minutes going over a ton of stuff. he asked me about my goals for the business, where I was going to provide cakes to, and working farmer's markets. I will be re-inspected every 2-2 1/2 years with warning (no surprise inspections). he was really nice and offered to help with anything he could. His area is all of Adams county and parts of York county. His name is Michael Neff, and if anyone needs his contact info. just pm me. he does primarily commercial inspections, and led me to believe that little kitchens like mine are not big on his priority list to bust for little infractions. We are considered wholesale if we work strictly on an order to order basis with no cakes sitting on a shelf waiting to be sold. So that way we don't need the food safety course or the "retail plan review packet".
I put a couple of pictures I took of my pantry in my gallery. I just put up shelves in our coat closet, and voila- a pantry for my business.
Let me know if you need anymore info I can provide.

Congrats on the license!! Your post was really helpful. I wasnt even gonna look into getting licensed beacause I thought you couldnt have ANY animals in your home. I took over our closet too for all my supplies,lol. It looks just like yours! And I like having everything so organized and accesible.

I just had a quick question. Do you have to have a separate fridge/freezer for your perishables? (eggs, milk, etc). I am so close to calling and having in inspector come out, but I want to have everything organized and ready. I have put it off because we have a new puppy and I have been trying to figure out a way to hide him He does not run through the house. He only has a gated area in the front entryway, so he does not have access to the kitchen. I think I'll hide him for the inspection and beat around the bush to see what my inspector has to say about pets. Thanks for your info!

I just had a quick question. Do you have to have a separate fridge/freezer for your perishables? (eggs, milk, etc). I am so close to calling and having in inspector come out, but I want to have everything organized and ready. I have put it off because we have a new puppy and I have been trying to figure out a way to hide him He does not run through the house. He only has a gated area in the front entryway, so he does not have access to the kitchen. I think I'll hide him for the inspection and beat around the bush to see what my inspector has to say about pets. Thanks for your info!

You do not need a seperate fridge/freezer. my inspector asked is I would be making tiers and freezing/refridgerating them till I assembled. I hedged a bit and said "when I make a cake, I put it all together pretty quickly". I am not sure if it makes a difference how long the cakes are in the fridge/freezer. btw- I cleaned off a shelf before he came, so that if asked, i could say that the shelf would be dedicated to business perishables. my guy never asked.
About the dog- you are not supposed to have pets in the house, but my inspector said that as long as they are outside or locked out of the kitchen while you are working, it is fine. To be on the safe side, I would hide yours and all his toys before your inspection. Remember to febreeze or oust so he has no reason to think you have a puppy. Part of the inspection list is about cleanliness of kitchen, odors, and overall appearance.

I'm so jealous! I'm from PA but live in TX now and it is SO hard to get licensed here. Here's another reason to move home! Good luck to you!

Thanks for the info. I am taking my water to be tested tomorrow. We have a well, so I have to pass a total coliform bacteria test. After that, I will be placing a phone call to the local inspector. I already have a floral business and I want to combine it with cake decorating. I've been afraid to update my business cards until I actually have a license. I don't want to put myself in jeopardy by calling attention to the cake decorating without first having a license to do so.