Tips for a new internet only business (selling video content)

Hi all,

We are looking to start an online business that will deliver streaming videos and tutorials for students for a set price each quarter or specific X-month period. All of us live in different states and out sales will be all online, we have a few questions before we proceed:

1. Given we all live in three different states (California, Maryland, and Arkansas) and we would like to incorporate - can you give us some advise on where to incorporate?
   I am personally leaning towards Wyoming as it seems to give us sufficient protection at a low cost. I found more information here - http://www.small-business-forum.net/starting-your-business/3427-best-structure-state-online-business.html

2. Can you recommend a specific web-host for streaming video merchants?
  All I found was - I would have to get a web-host and a video host (vzaar.com) to store the videos (embed the videos in our code). Can you confirm if that's the best way? Are there other options that are better?

3. Do we need to get a business license for this type of sales (video/content sales)?

4. We are planning to use resources such as rentacoder and freelancer to build our site. Are these safe? I.e. can we trust the developers to set up the payment processing information properly?

We are all newbies so thanks for your patience in answering our questions!

Frank