From Delaware's Food Establishment Regulatory Requirements (
http://www.dhss.delaware.gov/dhss/dph/hsp/files/feplanreview0603.pdf ):
OPERATIONS THAT DO NOT REQUIRE A FOOD ESTABLISHMENT PERMIT
1. An establishment that offers only pre-packaged foods that are not potentially hazardous;
2. A produce stand that only offers whole, uncut fresh fruits and vegetables;
3. A food processing plant;
4. A kitchen in a private home if only food that is not potentially hazardous is prepared for sale or service
at a function such as a religious or charitable organization's bake sale if allowed by law and if the
consumer is informed by a clearly visible placard at the sales or service location that the food is
prepared in a kitchen that is not subject to regulation and inspection by the Division of Public Health;
5. An area where food that is prepared as specified immediately above is sold or offered for human
consumption;
6. A kitchen in a private home such as a small family day-care provider; or a bed-and-breakfast operation
that prepares and offers food to guests if the home is owner occupied, the number of available guest
bedrooms does not exceed 6, breakfast is the only meal offered, the number of guests served does not
exceed 18, and the consumer is informed by statements contained in published advertisements, mailed
brochures, and placards posted at the registration area that the food is prepared in a kitchen that is not
regulated and inspected by the Division of Public Health; or
7. A private home that receives catered or home-delivered food; or a private home in which an individual
is hired to prepare foods for personal consumption.
Not real clear, but I think I can sell cookies (not potentially hazardous) on Etsy.