Something like this was the subject of an After-shool TV movie. The kid starts selling cow manure. Local business rival gets the local tax man to go after the kid for not paying taxes. In court, kid comes up with his defence. His father had already paid tax for the feed, paying on the manure would be double taxation, or something like that. Silly, I know.
I remember seeing that years ago. Don’t remember the name though. They’re liable to attract attention they don’t really want though.
First off, in a lot of places they’ll be required to carry some form of insurance on any employee. They’ll be required to get some business license of some sort. Then, unless they sell their stuff as some sort of individual novelty item or something there’s a little state agency that deals with weights and measures that usually comes into play at some point.
We had a boss that was involved in several businesses. One business created lots of cedar sawdust. So he’d sell it (people wanted it for some reason) for $1 per 5 gallon bucket. Oregon weights and measures shut that down because selling “by the bucket” wasn’t legal – had to be sold by weight or “standardized” volume somehow (something that would insure that each “bucket” contained identical amount). It ended up being a pain in the butt, so they just burned it – which required a permit too.
That’s the sort of stuff they’ll have to deal with.
That whole story is such a bunch of crap.
Everyone knows the government doesn't tax $#!#. If it did, Congressmen would all be broke instead of millionaires.