Basically, it depends on the law in your specific state. Most states require providers to register and undergo criminal background checks, training, and subject to random state inspections.
As all income is subject to taxes you may have to declare the income in your taxes and take all necessary and incidental expenses in running the business. One of the main problems you may run into is taking the home office deduction. IRS rule may not allow you to take the deduction for business use of a home. Finally, you may want to follow up with the rules in your state to make sure you are not running afoul of the law.
For further information please check out the following article about Home Office Deduction
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