Hi,
It varies from country to country.
In some countries, home-based businesses selling home-manufactured products are exempt from the
some of the laws and regulations that apply to businesses with employees in "commercial premises", and so on - sometimes just for their first year or two of trading, and sometimes even permanently.
I think it may help people to answer your question more fully if you specify a location either in your question or in your profile, otherwise we're guessing? (I'm guessing America, myself?
).