The last thing you want to do is spend several hundred if not thousand dollars on setting up a catering business in your home or commercial location only to find out your city will not allow it.
Certainly many small caterers do not have health permits or business licenses. Although I do not recommend this, what you do is your own business. If you do choose this route please think it through.
Do you have a homeowners association or nosey neighbor who may complain about you running a business out of your home to the authorities? If you plan on making this your full time income, is it worth lying awake at night worrying if the city is going to close you down.
Another consideration is do you have assets you do not want to lose. Unless you are completely legal most insurance policies will not cover you if you cause damage or someone becomes sick from one of your caterings.
Following is information you must know to make intelligent decisions about setting up your catering business; whether in your home or in a commercial space.

• Requirements for a Health Permit
• Requirements for a Business License
• Insurance Requirements
• Legal Protection
• Tax Liabilities
• Payroll Tax Liabilities
• Water Department polices.
• Subdivision Policies
• Landlord Restrictions
• Electrical Availability