If your little startup gets big enough, you will need a city business license and a state business/sales tax license. It will all differ, depending on what you do.

Around here, one of the most lucrative jobs around is being a housekeeper, hiring out to do housework. You are fortunate indeed to find someone who will do housework for $15/hr. These women do not pay taxes, they work for cash, and often use your cleaning supplies. So they make out like a bandit. The young ones with kids on welfare usually have a live in male who has a union job, and they are living quite well.

I make them sign a paper that says they are contract work, and they take care of their own social security and industrial insurance and unemployment. That way, I am covered if they get busted for welfare fraud or tax avasion.