Although I have no real plans to make my sole living at it, I have a "woodturning business". I made it official last year, since the shows I wanted to sell my work at required that I have a Seller's Permit. In California, that meant registering a business name, getting a tax ID number (for sales tax), and then getting the Seller's Permit. I still haven't completed this year's taxes, but I don't intend to itemize equipment depreciation like a serious business would. I still need to finish studying the rules, but as I understand things, I shouldn't have any difficulty showing losses and treating the whole woodturning thing as a hobby on my personal taxes. I also need to file separate paperwork to pay the sales tax on my show sales. Yet another thing I still need to fully research, and soon.
As for getting you started, look at the web site for your state's Secretary of State. I found a lot of info on
this site, and perhaps your state has something similar.