A LOT of answers, and intriguing questions....... thank you.....
Some updates.... I'm checking now, but it doesn't appear that I can lengthen my garage, 24' seems to be the allowable maximum. It would be possible to widen the garage to 24' (currently 14'), but that cost would be prohibitive - $14,000+, as it would require rebuilding the current structure to accommodate the added width.
As to another building, ANYTHING "permanent" will require a full permit, and will cause a reval on the property (tough on the taxes right now).
Permanent - any footing, or poured floor
I had the Tuffshed rep out here, and my current garage is nearly identical to a "Tuffshed Premier Tall Ranch". I could place it behind my garage and it would nearly disappear.
Addressing plumbing, my house is 30' from the back of the garage... no plumbing needed.
Addressing electrical, I don't plan on using 3 phase, at least not here. I currently "only" have 110V in the garage, but I am planning on running 220, to be better able to handle the load.
Addressing heating: The garage was never heated and it did cause some issues in very cold weather. A smaller enclosed space, should be heat-able with 2 or 3 5000w ceramic based space heaters (about 10" cube each). they can be mounted on the walls for convenience.
Speaking about code: As long as the new building is considered temporary, and is 200 square feet or less, there is no code to speak of. It is perfectly legal to electrify the shed, as long as the box is in the garage(permanent structure).
The Tuffshed @ 14'x14' with a proper door, 2 - 2'x3' windows, and a gable vent, fully painted, installed would be $6000.
One other interesting point... since the tuffshed is not on a foundation... it can be moved.... They mount jacks to the corner posts and then put it on big wheeled dollies. So if the biz does improve, and I want a more permanent structure, I can move it to another area, and build behind the garage.
As to running a biz from my home.... I do not know any specifics(I'll look into it more), but I've been doing it in the garage with the main door open(60% of the time) for the better part of 6 years now... admittedly, that doesn't make it legal... but I've never had a complaint.