First of all, technically do you HAVE to incorporate to start selling frozen bananas at sporting events? No. Now will those sporting venues require you to be incorporated? That's a question you're going to have to find out for yourself. Chances are, the sporting venue probably wouldn't really care if you're incorporated per se because you being incorporated will not give them any more incentive with giving you a spot. In fact they may insist that you sign your contracts with them in your own personal capacity rather than through your corporation or LLC. That being said, being incorporated does make your business appear more legitimate. Someone with a corporation is seen as someone who is more committed and dedicated to the business rather than a sole proprietor who may be just some sort of fly-by-night operation. Perhaps that sporting venue prefers dealing with corporations because they perceive corporate vendors as being more responsible and more reliable.

I would start with your local SBDC - they are free to use - they can help you with all the questiosn you have as well as help you sort through other issue that will come up.

Hello Eric, I think that a good place to start is to file for Tax ID or EID (Employment identification number) with the federal government (you can do it online through IRS web site). Of course you'd need to do the same with your state Dept. of Taxation. I'd also recommend to become a corporation to protect your assets and to separate business from personal finances. To apply for Articles of Incorporation you should contact your state Corporate Commission (there is a filing fee; $75 in VA). You'll also need to get a business license or permit and that could be different in each state and county (or city). So there is a little bit of paperwork at the beginning but it's doable and saves you some headache later on.  And yes, you'll need to pay sales taxes on your frozen bananas, but once you register with the state government, they'll send you an appropriate form that you'll have to fill out each month once your business is in full operation.I think that's pretty close to what you need to do as far as your first steps concern. Good luck Grazyna (If you haven't done so, you might try to contact your local SBA office for further assistance. I'm sure they'll be able to offer a good advice or classes on starting your business)