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eWhisper - 8:47 am on Apr 23, 2004 (gmt 0)
In some states, not only are products tax deductible, but so are internet services. So while you'll still pay the income taxes to everyone, you might not have to pay business taxes. Advertising is tax deductible, so its recomended you use a different credit card than your personal to easily seperate out what was a business expense compared to what is a personal expense. A little extra paperwork, and an accountant, can end up saving you quite a bit of money.
Consult your local accountant before assuming this applies to you.