To start with your business’ legitimacy, you must provide employer’s ID number if you have employees or in a partnership settings. You must also get a federal license if it is being covered by federal laws.
Your home business must also obtain trademarks, copyrights or patents so that you can protect your products or services. This is important especially if you are creating your own products or services.
You must also find out if your home business requires sales tax. If it is, then you must register it with an institution which is responsible for the tax collection. If your business has a name, it is also important that you must register it.
It is indeed a requirement for you to determine the legalities of your business. You must consult a lawyer or approach the right government agencies to ensure that you are managing a legitimate home business.