To begin with, you have to go online to your state's department of licensing, there you will need to fill out a business license application. Don't forget that even if you only plan on selling online, like Ebay or Etsy, or your own webpage, you must still have a business license! Basically, if you sell your products anywhere, you will need to always file your earnings (or losses), plus taxes paid by customers, with the IRS, and if it applies, your state of residency.
There are quite a few different types of business licenses; Corporation, Limited Liability Company, Limited Liability Partnership, Limited Partnership, Sole Proprietorship, or General Proprietorship. We suggest you research these different business structures so that you can make the best and most educated decision as to which application to file!
Keep in mind that you need to start out with a plan for your business. Making a plan sounds harder than it really is. If you need to acquire a loan for this venture, banks or lending institutions may need a more detailed plan than if you are going to finance this venture on your own. So the easiest way to do this is by writing this all out!
You will need to consider:
All businesses hiring employees are required to register for worker's compensation and unemployment insurance. By completing the Business License Application, you'll be registered for workers' compensation at the Department of Labor and Industries and unemployment insurance at the Employment Security Department. After filing your application, the Department of Labor and Industries and the Employment Security Department will send you information about employee quarterly report forms.
You will also need to apply for city licenses at the same time you apply for state licenses and registrations. Most city licenses are also available online. Some states include city license applications with their Business Licensing Services.