You don't mention whether you anticipate having employees. If you do work for corporations or have employees you will need a FEIN. Most corporations and many banks (to open a business account) will no longer accept your Social Security number. The process to get a FEIN is quick and easy and free. If you want to purchase supplies at a reduced rate, you will need a sales tax permit. You would then collect sales tax from your clients when you bill them. Alternatively, you may choose to purchase your supplies at retail and include them in the cost of completing the work rather than itemizing them. In that case, you may not need a sales tax permit. You will need to pay estimated taxes and self-employment taxes on your income. You canfind information about both on the IRS web site. You need to register your business name and entity type with your state. If you register as an LLC or a sole proprietorship, you may be able to report your income and expenses on a Schedule C when you file your personal income taxes. If you register as a corporation, you will need to file a separate business tax return. You may want to visit with a bookkeeper or an accountant and have him/her help you set up your financial records so you are reporting everything properly.

Hi, We have a lot of resources about taxes and getting a tax ID number. One approach that may be useful is talking to a mentor who could offer you specific guidance. Another great resource is SCORE, one of SBA's resource partners. SCORE is a nonprofit association comprised of thousands of volunteer business counselors throughout the country. They are trained to serve as advisors and mentors to aspiring entrepreneurs and business owners-at no cost to you! You can find your local office or set up an online meeting to chat with someone about your questions. Visit SBA Direct to find your local SBA resource partners by entering your zip code.