Home office = No rent + Great tax benefits.
If you live in one of the municipalities where operating a home cookie business is legal, there are many potential tax benefits. However, to maintain your professional image and your tax status as a business, not a hobby, you should treat your cookie business like any other job, maintaining a professional image. When getting started with a cookie business, there are so many things to remember and so many documents to keep organized. Be sure to set aside space in your house in addition to your kitchen, specifically for running the business. If you are unable to use your own kitchen to bake your cookies, you can still work from home for all of the day-to-day business activities that are required. Research, sales calls, packaging bookkeeping, ordering supplies, invoicing, marketing, tax preparation are all activities you can conduct in your home office
The tax advantages may be significant when operating a home office. A home office does not have to be glamorous, but it does need to be exclusively used for business and it does need to be comfortable. The IRS typically looks at home office deductions very carefully and you may want to consult with a tax advisor regarding such deductions.
A cookie business does not require a storefront to be successful. There are many sales venues to consider as I discuss in my forthcoming book in the chapter: MARKETING YOUR PRODUCT. In the initial stages, you are still testing and revising to determine the demand, the most successful sales channels and the best product lineup. If it is as all possible to start your business at home, that is the safest way to go. Remember, even if the product is not produced in your home, you can still run the business from home. As you grow, you can make the decision to move to a storefront or wholesale operation (or a combination).