text: For both State and Federal, you'll need to pay estimated taxes (paying taxes ahead of April 15th). Here's a link to the IRS site on estimated taxes: http://www.irs.gov/publications/p505/ch02.html\n\nDepending on how you are set up as a business, you might be using Schedule C from the 1040. And you will probably have to pay a Self-Employment Tax.\n\nOther things you may have to pay for are Net Profits depending on if the business is incorporated (if at all) in a city's boundaries, business licenses, etc.\n\nBut first decide if you are going to incorporate and if you are employing others. The easiest is to just be a sole-proprietor. However, you don't have legal protection (if someone sues you) until you incorporate.\n\nThe easiest and simplest form of corporation is the Limited Liability Company (LLC). Further, a single-member LLC is even simpler in that you only get taxed once -- you don't have certain corporation taxes. Basically, it's almost just setting up legal-protection by filling out a few forms. Otherwise, you just fill out Schedule C and you're set.\n\nHere's a link to the IRS's tips on starting a business. http://www.irs.gov/businesses/small/article/0,,id=110417,00.html\n\nThis is just a brief overview and certainly just tips (and not proof for the IRS if they audit you). Best to seek out a small business advisor or read up on the IRS website.\n\nGood luck.