This amazing blog post by my friend at Alterity is one that every artist and craft person needs to read! It would have helped me to know half of this stuff about taxes with a jewelry business. =)
If you're just starting out head over and read this post because it could save you some heart ache (and money) in the long run!
I actually have an accountant person who has been doing my family's taxes for years and years (my grandfather's and my mother's) so I just kept with him to do my business taxes as well. I still don't know if my taxes are correct but he seems to be able to figure out my notes.