I'm starting up a home-based online web design business with me as the sole owner. I basically plan on operating as a sole proprietorship with my assumed business name. All my designs are sent to my customers electronically so there is no tangible products and I operate in the state if Minnesota. I'm wondering if I would need to get a state and federal tax id and if I would need to do quarterly taxes? Or if I would just claim the income on my annual tax return? What all do I need to make sure I'm operating my business legally? So far I just have my assumed business name registered with the state.
