I must know dozens of people who would happily start small businesses out of their homes but don’t want to run afoul of a dozen different regulatory agencies and IRS.
I looked into “legally” starting a small engine repair business. It would cost me more than I would make and if I were successful and hired a few employees I’d just run into another wall of regulation.
Hell, just start doing it. Damned the regulations. Around my area, if we want to do something, we just do it. Do it on a cash only basis if you can.