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A good source of free information on starting any business is SCORE (Service Corp of Retired Executives). Contact your local Chamber of Commerce, their offices are usually with them. They will help answer all these questions, and help you develop a business plan. They don't charge anything for this service.
The biggest problem you may encounter is with the local zoning ordinances. If you are in a residential zoned area (you probably are), you will need to get a zoning variance. This will require a fee, and a meeting with the zoning board and they will contact all of your neighbors, who can contest this variance. Your local authority can show you the zoning ordinance which will explain the limitations of the business in a residential zone, even with the variance. Items like: no employees, no outside advertising other than a small sign, off-street parking, etc, etc, etc. Every place is different.
Don't be discouraged by all this. If you are sincere, make a list and go at it step by step. Most of the planning can be done without spending any money. Then decide if you want to pursue it.
I think you will see why businesses need to charge what they do to conduct a business. Don't go into any business just to be the cheapest. Find your niche and perfect it, and then get your fair price.
The federal stuff with the BATF is cut and dry. If you meet the criteria, you will get the license. The stumbling block is usually the locals.
Just my two cents.
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