In Florida you actually can sell cakes without a license made in your home. You have to mark the packaging with “Made in a cottage food operation that is not subject to Florida’s food safety regulations.” Only certain foods are permitted for sake in this way. I don’t know if this is allowed in all 50 states and DC, but I know more than FL has this type of law. Nothing is really stopping me from opening a business except my own laziness or more than anything being risk aversive. Risking investment money, or risking any liability if I screw something up for a customer. If I started a business it would start with just me as an employee probably, maybe my husband too, so at the start wages wouldn’t be a problem. Business license is fairly cheap. If I have to charge sales tax, filing that is a pain, but I did it for my previous business. If I want to set up a corporation or LLC it’s not extremely expensive, but it is stressful for me any time I need to worry about doing things right for the government. I’m a rule follower, and I don’t want to worry about being compliant, it stresses me out. When I had questions the local government was always very helpful, which I was grateful for.