What to do about a buisness that happenned over night?

Epicfail is right. The first thing you need is a session with a good business accountant. Before you hire him to do all your taxes, sign up for an hour of his time at going rates and ask all the question you can think of. He can help you determine how to take deductions and what receipts/records you need to keep. For example, most freelancers can deduct mileage but need to write down mileage in a log book when they drive to a job. Nearly all self-employed people start out not keeping enough records. It is amazing how much you can deduct IF you have the documentation to back it up. Home office deductions, equiptment deductions, mileage deductions, etc Get an overview of what you should be doing and see how well you like the guy. Depending on how much you are making, you probably should be paying taxes quarterly. Get some help before the IRS decides they don't like something you are doing. Alos, a local accountant can probably give you an idea what kind of general business licenses are needed in your town or county. Good luck!