Prerequisites of a Business are Registration of Business Name which will likely be a “Doing Business As” (DBA) or “Fictious Business Name” (FBN). As this process let's your government know the name in which your the business is been operated under.
Federal Taxes; as any business that operates as a corporation or partnership or has employees will need an Employer Identification Number (EIN) from the IRS. An EIN identifies your business for tax purposes.
State and Local Taxes; in addition to federal taxes, independent contractors are also required to pay state and local taxes—self-employment, payroll, income, sales, and property tax.
Business Permits and Licenses; Just like any other business, independent contractors must obtain proper permits and licenses.
Business Laws and Regulations; Even as a small business owner, you’re subject to some of the laws and regulations that apply to large corporations.