You can start a home baking business with the home cooking laws that many states have, but your capacity will be limited by your home oven and refrigerator.
If you plan to produce in large quantities, or if your bakery uses potentially hazardous ingredients, you will need to produce in a commercial kitchen.
You can build and equip a kitchen for baking from scratch, but you'll save money on start-up costs if you can find a licensed dedicated kitchen for rent, at least temporarily.
Assess Your Needs
Before you start looking for commercial kitchens to rent, check how much space and time your bakery may need. Calculate how much product you'll need to achieve the sales volume that will bring you a profit, and consider how much counter, oven, and fridge space you'll need to bake that amount and how long it will take. Also, predict how much income it makes sense to spend on renting a commercial kitchen.
Find a Place
If you know other bakers in your area, ask if they know of a shared kitchen you can rent. Some cities have incubator kitchens specifically designed to rent out space for start-up food businesses. If there is an incubator kitchen available in your area, you may also be able to find other services available through the organization that runs it, such as support in small business planning.
Commercial Kitchen Rental Licensing Requirements
Contact your local health department and ask about licensing requirements for a commercial kitchen rental. Don't assume that, because the kitchen is licensed by a different business, the permit will cover your baking operation as well. Research licensing requirements for the type of sales you plan, such as wholesale, retail, or direct retail sales at farmers' markets.