It might be cheaper (or even free) to set up an LLC via your states official website. Normally
www.(state abbreviation).gov
LLC stands for Limited Liability Company, which protects your personal assets in the event of a lawsuit. Otherwise, you would be operating under your own legal name (regardless of what you called the company) and any lawsuits would be against your legal name resulting in the loss of your personal assets (home, car, etc). But with an LLC, the only things effected in a lawsuit would be the assets owned by the company itself.
If it's an at-home business with you being the only employee, you could use your SSN as the tax id for the business even if it is an LLC. Might not need any other insurance or licenses either then. How much net income you can make before needing to pay business taxes on it will depend on your states laws.
When it comes to renting commercial space, the leaser may want (or need) to know business information, such as business license numbers and insurance policies. Depending on your state laws, renting a commercially zoned kitchen could result in requiring insurance and paying taxes on any income made, as it signifies the business is growing from a small at-home operation to a larger scale and Uncle Sam will want his cut of your income.
If you wish to hire other employees, then you definitely need a separate Tax ID (or EIN, Employer Identification Number) for the business, you will have to file stuff with the IRS regarding employee wages, collect taxes from employee wages, need insurance (to cover employee injuries), and even pay taxes on the business income. Pretty sure this falls back on the money limits though, I mean, if your only making a hundred dollars a month and have a buddy come over to help when your feeling sick, I doubt you would be required by law to make him an officially recognized employee of the company and have the insurance necessary to pay him workman's comp (I could be wrong though).
If you want to rent an actual retail location for customers to visit then you will most likely need a retail license. These can also be free via your states website and they must be displayed at the retail location. If you go into any business accessible to the public (like walmart, gas station, DR office, etc), you can see a bunch of framed documents hanging behind the customer service desk or somewhere near the front. These are retail licenses etc.
All this stuff varies from state to state though.
It's also been a decade since I was looking into setting up my own business, so this stuff may have changed a bit. It's also pretty damn easy to get away with not doing some of the stuff above.
But as an example:
Buddy of mine lives in TX and makes smoked nuts to sell at carnivals etc.
If he makes more then $500 a month, he has to pay taxes on it.
He cannot go into smoked meats or cheeses without a food service license.
Also says he would need a retail license if he wanted to rent a commercial kitchen.
