First off, you don't have to register as a PC, that costs a TON of money!! But you should get a biz licence from your state before selling anything at all. I did mine online here in PA, it was quick adn didn't cost anything. Also, I'd suggest getting biz insurance (most WAHMs have it through RLI http://www.rli.com
) I wouldn't even consider selling before having insurance.
Not sure what you're referring to for "that site" and costing $500 to set up, so can you clarify?
As for taxes, if you are doing internet commerce, the only time you have to pay sales taxes on what you sell is if you sell to someone in your state. OTherwise, internet sales are considered interstate commerce and aren't taxable. you will, however, have to pay income tax on them at the end of the year, but you'll also be able to claim business deductions (like inventory, ad expenses, etc). As for paying taxes when you spend money out of your biz account, I'm a bit confused there as well. Naturally, when you spend money you'll pay sales taxes, but that's unavoidable. As far as I know, though, there aren't any special taxes for spending business profit, perhaps I'm just unaware? If you set up as a sole proprieter (the easiest way for a small biz) then all profits are yours to spend, basically. It's not like capital gains, or having to distribute salary with a corporation.