Ok am instested in what is needed to start up ie: business lic. tax id etc. Or is it a free for all due to the fact the net has no taxes. also how bad to taxes hit you when you are selfemployed (ie: running a WH biz. )

Much of this is local, and you may not need anything if you are running the business under your own name. A DBA (doing business as) is usually required if you are running the biz under another name, and things like taxes vary depending on how the business is set up. I'd spend the money on a visit to a decent CPA and explain your situation and get some advice as to what's best for you.

also look into becoming a member of your local chamber of commerce
we have found it very valuable

costs may be high 3-800 a year
but the benifits are great

we get a set number of hours a year for legal consulation and legal services/finance managers/accounting/ and other things

also your workmans comp and other payouts will be slightly lower and there is also a tax break

=)