I applaud your guerrilla tactics, but home baking for money is a cardinal sin. Plenty of discussions on that in this forum.
Your formulas cost <$0.60 pp?
There are more licenses then health licenses. Remember all those kids' lemonade stands that got shut down in PA because they didn't have a business license? That could be you, especially if one of those people you're undercutting tips them off. Also you may have to collect sales tax depending on your jurisdiction. Sales taxes are trust fund taxes, and it is seriously bad to mess around with those. There are also local business taxes. In my town, there is an exemption for the first US$500,000 in cash receipts, but if you don't file the paperwork properly, you lose the exemption and are stuck with the minimum tax.
Additionally, I think at this stage at your career, your skill and career development would be better served with a job working for someone else. Even if it's on the savory side.
Thanks for the great advice, you guys are very helpful. I will stick to handing out baked goodies for no profit to get to know the neighbors, and be social, seeing as we do not have anything to sell at the garage sale. Again, thank you for letting me know the red tape, I appreciate it. Sounds like a bit too much of a hassle for a block party.