PrintIf your home-based business is a sole proprietorship, meaning you're not in partnership with anyone else and you have not incorporated your business, you don't need to do much to start operating.
If the name you choose for your business is more than an extension of your name (for example John Doe Enterprises), you'll need to file a fictitious business-name statement with your local or state public office. If you haven't already done so, consider trademarking the names of your products and then register these trademarks with the U.S. Patent and Trademark Office.
Depending on the rules of your city or county, you'll probably need to obtain a business license. This is a good idea regardless of whether or not you're legally required to have one. You may also need to obtain some sort of special home-business permit depending on local zoning rules. If you sell taxable products, you'll need to get a seller's permit from your state sales-tax department.
As a sole proprietor, you do not need to apply for an Employer Identification Number (EIN) to start your business or file your taxes — you simply use your Social Security number. You'll need an EIN if you pay wages to one or more employees or if you file pension or excise-tax returns.
There may be other requirements for making your business 100 percent legal — these are just the basics. Check with your state and local government officials to see what other requirements might apply to your business.