The first thing you should consider is choosing an appropriate form of business. From a legal point of view, there are four types of businesses: 1.Sole proprietorships (This is simplest form of business. A sole proprietor directly owns business and is directly responsible for its debts.) 2.Partnerships (A form of business entity in which 2 or more co-owners engage in business for profit. For most part, partners own business assets together and are personally liable for business debts.) 3.Corporations (A corporation is a legal entity that is separate from its owners, shareholders. No shareholder of a corporation is personally liable for debts, obligations or acts of corporation.) 4.Co-operatives. (A co-operative is a corporation organized and controlled by its members, who pool resources to provide themselves and their patrons with goods, services, or other benefits.) I think in most home business cases most suitable is sole proprietorship.

A sole proprietorship is a business entity owned and managed by one person. The sole proprietorship can be organized very informally, is not subject to much federal or state regulation, and is relatively simple to manage and control.

REGISTERING YOUR SOLE PROPRIETORSHIP