In my area of NYS it is not allowed anymore, even baking to give to the food pantry or a charity is not legal anymore. Charity baking has to be done in a church or school kitchen that has been inspected and licensed.
The folks that do bake or can at home do it on a don't ask don't tell basis.
If I was starting out I think I would look for an organization, church or saloon that has a kitchen that is not used much and see if I could rent the space. If your business does not work out you will have nothing invested.