I think you can call the Dep’ts of Revenue for your state and city to find out about taxes – how to record, how to report, how much will be due. If your business is not incorporated, you report income and expenses with your regular income tax statement. If incorporated, it has to have its own account with the IRS. The IRS will help you figure that out. Whether to incorporate – try one of those books “for Dummies” – you can probably learn what you want to without even leaving Barnes & Noble.