Start a home business is a lot less complicated, as long as you are going to be the sole owner and employee. If you are going to have people working for you, it will be necessary to follow the state and local laws for establishing your business, paying payroll taxes, and all of the legal issues you will have to consider. Even if you are simply working for yourself, you may want to consider getting an LLC license, to establish your business name and deal with income tax issues. You will also have to check into paying taxes quarterly, instead of once a year. Moreover, you must be very careful about claiming part of your house as a tax deduction.