If you’re building a wedding cake business, one of the biggest questions you’ll face early on is where to bake. Should you operate from your home kitchen under cottage food laws, or invest in a commercial kitchen space? The answer depends on your local regulations, your goals, and how you want your business to grow.
In this post, we’ll explore the key differences between home bakeries and commercial kitchens, and help you decide what setup is best for your wedding cake business.
What Counts as a Home Bakery vs. Commercial Kitchen?
Home Bakery
A home bakery typically means baking from your personal kitchen. In the U.S., this is usually governed by cottage food laws, which vary by state. Some places require permits or inspections; others don’t allow home-based cake businesses at all.
Typical features:
- Operates under cottage food law or similar regulations
- Limited to approved recipes (no fresh cream, cream cheese, etc.)
- Often capped by income or sales limits
- Lower startup and overhead costs
- Ideal for smaller-scale or part-time businesses
Commercial Kitchen
A commercial kitchen is a licensed, inspected facility designed for food production. It can be a shared rental space, a kitchen you own, or part of a storefront setup. Some cake artists even have a private studio space attached.
Typical features:
- Fully licensed and certified by health authorities
- Allows use of a wider range of ingredients
- Can handle higher volume and larger wedding orders
- Often required by venues for food safety compliance
- More expensive to operate
Key Differences to Consider
Legal and Regulatory Requirements
This is the most important starting point. Not every state or country allows home-based baking businesses, especially for wedding cakes. If you live somewhere that doesn’t permit it, your only option is a commercial kitchen.
In the U.S., cottage food laws vary widely. Some states allow unlimited income; others set strict caps. For example, when I lived in Florida, the annual limit was $1,000 at the time. In Illinois, there was no cottage food law at all, so I had to rent a commercial kitchen. Now in South Carolina, I can legally run my wedding cake business from home, with the right permits and insurance.
Production Capacity and Equipment
Home kitchens are great for smaller projects, but wedding cakes often require more space, larger fridges, and professional equipment. Commercial kitchens can offer that, but at a price. If you’re renting, make sure there’s enough cold storage and workspace for your needs, and clarify what equipment you’re allowed to use.
Costs and Overhead
Baking from home typically means lower expenses. No rent, fewer utilities, and less financial pressure. But commercial kitchens come with higher overhead, whether you’re renting hourly or monthly.
If you’re not yet bringing in consistent, high-paying orders, those extra costs can be hard to justify. But once your business is steady and you’re booking larger weddings, the investment in a commercial kitchen can pay off.
Flexibility and Lifestyle
One of the biggest perks of a home bakery is the flexibility. You can work around your family’s schedule, avoid commuting, and create a workflow that fits your lifestyle.
For example, I work from home under South Carolina’s cottage food laws, which allow me to use real butter and pasteurized egg whites—perfect for making Swiss meringue buttercream. I’ve set up a dedicated storage space, I only take delivery orders (no pickups), and I make most of my wafer paper flowers at home. It’s efficient, comfortable, and works well for my current business model.
Read more: How to store wafer paper in the fridge without damaging it
That said, not everyone wants to keep their business inside their home long-term. A commercial kitchen can help create separation, offer more space, and provide a more professional environment, especially as your client base grows or if you need to meet with couples in person.
How It Impacts Your Wedding Cake Business
Booking and Client Perception
Some venues won’t accept cakes from unlicensed home bakers, especially for weddings. If you’re working under cottage food laws, it’s essential to have all your permits and documentation in place. This isn’t just about staying legal—it’s about trust. Clients feel more confident booking when they know you’re fully licensed, insured, and able to deliver directly to the venue without complications. A clear, professional setup goes a long way in building credibility, especially for high-budget weddings.
Pricing and Profit Margins
Home kitchens have lower overhead, which means better margins. But commercial spaces add legitimacy and may justify higher prices. Just remember, if you’re paying rent and storage, you need to price accordingly or risk eating the cost.
Scalability and Growth Potential
Home setups work great at first, but as you grow, fridge space and baking hours get tight. A commercial kitchen gives you room to scale, whether it’s booking multiple weddings a weekend, hiring help, or prepping bigger orders without stress.
What’s Right for Your Wedding Cake Business?
There’s no one-size-fits-all answer, what’s right for your business depends on your goals, your local laws, and the stage you’re in. A home bakery can offer low overhead and flexibility, especially if your state’s cottage food laws are business-friendly (like in South Carolina). But if you’re aiming for higher-end weddings, want to scale, or need to meet venue requirements, a commercial kitchen might be the better fit.
Whichever path you choose, make sure it supports the kind of wedding cake business you actually want to run. And if you need help setting it up right from the start, you’ll find contracts, pricing tools, portfolio templates, and more inside the Cake Business Blueprint.
