You may need a business license to "operate" the business where you are making things and a business license to sell things somewhere else, i.e., a local "peddler's license". We can only guess, since you give no clue as to which municipality you're talking about. Your local business lawyers will be glad to help you.
As mentioned by others (although you didn't ask), there are certainly going to be OTHER licenses involved in making, packaging, labeling and selling food to the pubic, which also vary by location (among other circumstances). For instance, you might make baked goods in a home kitchen for sale at a local farmers' market, within limits, without any "health department" licenses, in some states, and subject to different packaging and labeling rules than if you're selling to other retail distributors.