I live in Nebraska and according to our laws, you can sell cakes (and other baked goods - except cream pies!) at the local farmer's market on Saturdays. But now I'm all scared to try that even because of this site! I was going to try that until I can save up enough money for opening up a business. I am also thinking that we are a state that permits licensing home bakeries without a 2nd kitchen...but then I read all this and I feel guilty about that even...
Why feel guilty? That I don't understand. First start at your city level to evn see if it is allowable. Then go to county HD, then state AG. Find out was is allowable under your state laws.
I would think even at a Farmer's market they would need some kind of license. Even if it is to protect the owner of the market.