[jyl]

Thanks everyone. I will be consulting a CPA and have already contacted a business attorney.

Another interesting wrinkle - RWebb hit on this. I live in city of Portland OR which has a city business tax (2.2% of profit) and county of Multnomah which has a county business tax (1.4% of profit). Business attorney suggests locating my business outside of Portland/Multnomah for this reason. I could go to a neighboring county or over the river to Vancouver WA, neither have a comparable business tax. The commute to either place is not much. I don't really want to work from home - prefer to separate home life from work life.

My "location" can, at least initially, simply be a co-working/shared services sort of place (e.g. a WeWork). All I need is a private/lockable office with fast/reliable internet (I will figure out necessary data security) and use of reception/conference room/mail. This can be located almost anywhere and costs around $1K/mo.

Obviously I am over my depth. I'm going to bring my business model/projections to CPA to see what sort of corporate structure is worth doing.