I am trying to start my own small business. What do I need to make the business legal, and what grants are available?

In Ohio (since you are listed as being from Ansonia), you will first need to decide on what form of business you intend to create:

1) Sole Proprietor;
2) Partnership;
3) Limited Liability Company;
4) Corporation.

Or some hybrid of one of the above like the Sub-S Corporation.

What format? I don't know - that is a question for you, an attorney, and your accountant to determine. Don't go online and grab the first "incorporate yourself" link and set up a "corporation"; don't set up a Sub-S because the brother-in-law did; don't do an LLC because a guy at work said it is the best. You should review your decision with competent professionals who understand your plan.

Once an appropriate entity is chosen, you file certain forms with the Ohio Secretary of State, depending on what business format you have chosen. The forms are online (i.e., you don't need to pay an online site to get them) and your counsel will know the correct form to use.

One area I see a lot of Ohio business people do incorrectly is their business name. If you use a name other than the exact llc or corporation name, then you need a fictitious name filing or trade name. So, that may be a filing you need to do at the start up. Again, counsel can advise you.

Filing fees (paid to the state) run about $150 to $250, depending what you need to file.

You will then want to create an operating agreement, partnership agreement, corporate bylaws, membership agreement, depending on your business format, to govern operation of the business.

If you have employees, then you will need to apply for workers' compensation insurance.

You should get a federal tax ID number because you will need it relatively quickly. Speaking of IRS, if you do not know what self-employment tax is, then you should go to the IRS website and read up and educate yourself as to small business tax issues. In my practice, lack of compliance with IRS tax rules, lack of self-employment tax estimated payments destroys more businesses quickly than any other compliance issue.

You need business insurance because it is smart, is usually a requirement of any lease, and your homeowner's insurance probably will not cover home business operations.

If you use a vehicle, you will need commercial auto insurance.

NOW, as to grants... None. What you may be thinking of is Small Business Administration loans. These are not grants and are secured personally or after three years of commercial activity their may be some other loan options available. Some technology companies may give start up capital to a really good idea backed by a solid business plan. But, again that is not a grant. There may be some local grants or tax waivers of some kind, but in my experience there are NO "grants available." This is a common misconception and it is fed by Internet disinformation. If you see a claim that you can get a grant or get a list of available grants to start a business, it is typically a scam. Go to the small business administration website to educate yourself on loans and requirements.

I applaud your decision and encourage it.