Just because you are a small, home based business does not mean that you are exempt from the business laws in your state. As a matter of fact, since many of us have so much to potentially lose; it behooves us to know the laws that affect us in our state and to keep up on licensing and other requirements.
The things to remember are that knowledge is powerful and that laws are always changing. It is important to keep up on how your business might be affected. Not only do you need to make sure that you do not need a business license or any other sort of license when you start your business, you need to keep track of the changes in laws to make sure that it does not become necessary to have any sort of licensing later on. Other things to pay attention to on a regular basis include zoning and tax laws. Tax laws, in particular, seem to be constantly shifting so get a good tax consultant to help you keep up on how the changes affect your business operation.
For information on your state laws, you can contact your state government. Find the government web site for your state and peruse the sections that affect you. You can also make a trip to your local library for more resources and information on business laws specific to your state. Make sure that you are gathering the most recent information so you can know the current laws in your state. Keep in mind that the laws that affect you will be influenced by the location of your business, the size (how many people actually work with and for you) and other elements of how you do business. If your business changes and grows, the way you are affected by state law will likely change too.