As someone who has never started a small home business, but is considering it, I am curious what must be done to make it all legit. Especially when it comes to paying your taxes. And when I say home business I am refering to selling goods from home via Internet. I’m asking you, the teeming millions, to guide me in the right direction.
Talk to a local accountant. Other than that, you takes you chances with the IRS.
No big deal here; just report your income and expenses, that’s all they ask.
There must be twelve million books at the nearest library that would detail some of the steps of what to dos and what not to dos. I would get a couple of those and read up a bit. Then, when you run into some unique situations or problems come back and get some specific questions answered.
I think your question is a good one, and I wish you the best of luck, but it may be too vague at this point to really net you any good info.
Talk to the people at SCORE; Service Corps of Retired Professionals: http://www.score.org These folks will provide tons of advice and/or counseling; usually on a one to one basis and at no cost to you. They also offer seminars and short courses. These folks are worth your time and trouble.
Take a look at the Small Business Administrations website: http://www.sba.gov Tons of advice and “how-to” papers, all at no cost.
Take a look at the Internal Revenue’s website: http://www.irs.gov All the tax info for small business guys you could ever hope to use. Plus, they offer a tax question answering service via email or telephone.
Your money pays for these government sites; use 'em.