You merely report your income and expenses from your sole proprietorship on Schedule C Form 1040, Profit or Loss From Business, or on Schedule C-EZ Form 1040, Net Profit From Business. If you use part of your home in your business, you should complete Form 8829. This is a growing concern on the Internet. While I am sure that you would want to avoid legal entanglements as possible, getting trademarks and copyrights for your business are your best way to protect yourself. As for the process, the best thing is to visit your county government office and ask them for their requirements.
Laws differ from state to state, from country to country.
You just need to throw in a little effort in researching the legal requirements for small businesses in your area, and be willing to shell out a few bucks. The few hours that you are going to spend trying to get a formal identity for your business will surely go a long way. Check in with your lawyer or accountant what the best recourse of action for your type of business and personal circumstances. All rights reserved. All rights reserved.