The only other hardware you’ll require for your online start up will be an internal or external modem or an Ethernet card.

Modems

A modem is used when you choose a dial-up connection for your computer and connects your computer, via a modem cable, to your phone jack. It converts data from a computer into sound signals that can then be transmitted over a normal telephone line. It works the opposite way around when receiving information. Your modem should be at least 56Kbps.

What can I deduct as expenses for my business? Expenses that are tax deductible reduce your gross revenue (total revenue) to net income (profit). This, in turn, reduces your taxable income. A cost, or “expense”, is typically written off during the year it is purchased.
Tip: A good rule of thumb is that a cost or expense will generally be deductible if it has a legitimate business purpose.
When an expense, such as a car, has a useful life of more than one year, it is called a capital asset and will be “written off” a little bit at a time; based on its useful life. This is called depreciation. The IRS determines the useful life of capital assets. Be aware that

Self-Employment Tax (SE Tax) is a Social Security and Medicare tax used for those that work for themselves. You determine your SE tax using the IRS Schedule SE (Form 1040). You can deduct half of your SE tax when determining your adjusted gross income, but you cannot deduct your Social Security or Medicare taxes.

The self-employment tax rate in 2010 is 15.3%: 12.4% for social security and 2.9% for Medicare. The Schedule SE for the current year will always give you the up-to-date rate for that year.

To pay SE tax, you must have a Social Security Number (SSN) or an Individual

A sales tax is charged at the point of purchase for certain goods and services. If you have a brick and mortar store, sales tax is easy to determine. You simply charge your customers the sales tax required by your jurisdiction. If you have your store in Ogden, Utah, for example, you will pay the appropriate taxes for that area. These taxes vary from jurisdiction to jurisdiction.
WWW.BUSINESS.GOV/GUIDES/TAXES/STATE.HTML

But how do sales taxes work online? If your business has a physical presence in a state, such as a store, office, or warehouse, then you are required to collect the appropriate state and local taxes for items sold.