I am a former restaurant / bakery owner from a rural area in NC. I was inspected by our local health department and they did sign off on my entire operation since both operations were combined in a single kitchen. Legally, my baking operation should have been inspected by USDA if I were to have followed the letter of the law to the fullest extent.... There are areas in NC where many times enforement is lax on some laws... Im not saying it's right or wrong, but that's how it is....