rental kitchen, startup costs

I became legit, got a kitchen and started doing some farmer's markets however the kitchen rental is $25/hour, that on top of ingredients and theoretically paying myself there is no way I can make enough and have reasonable prices without having crazy high prices. A cottage license would have been a beter way to go, but I have a dog. A friend of mine in DC (I'm in Oregon) said the way she and a lot of other people get started is to rent a kitchen for a few hours a month but do most of the making at home. I have a dog, or else I would have gone the cottage route. Her suggestion was to do it at home to start and just keep the dog out of the kitchen while I'm chocolating and use the kitchen for a few hours each month for appearances. I don't like breaking rules/laws... Any thoughts? I have a plan to propose a partnership with a local bakery/candy shop, but I need to make some samples before I meet with the owner...