How do I start a Graphic Design Website?

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Hi Mylotters! I've been maintaining two websites for the past 2 years and having a lot of fun with it. I'm an elementary music teacher, and I've maintained a school website for my students and parents. I also have a website for my family. I'm tossing around the idea of starting my own Graphics website. I want to design graphics and graphic packages for musicians. I have a pretty good knowledge of HTML basics and webpage design. I'm also a little knowledgeable about copyrighting my designs and protecting them. I plan to use paypal for all of the transactions on my website. I'm just lacking the knowledge on the business side. If I start my own website, do I have to charge sales tax for each transaction? Do I have to register my business if I do? Also, how do I report my income when it comes to tax time? What happens if I create my website (using a webhost like Blue host or something) without filing with the local tax revenue agency. Also, how would this apply if someone overseas wants to buy my designs? If anyone can help me get a good start on this I would really appreciate it!