GUIDE · 7 min read · March 2026

Home-Based Business: Licenses & Tax Basics

LLC vs sole prop, EIN, separate accounts, and quarterly taxes — plain English.

Start simple

Most founders start as sole proprietors, then form an LLC once revenue is consistent. Get a free EIN from the IRS in minutes.

Separate bank account from day one. Track every expense — software, mileage, home-office %. This is educational info, not tax advice.

Check your city/county business license plus state rules for food, trades, and childcare. Links live on each idea roadmap.