Business & farm
Yes, I understand what you are asking can be a bit confusing. I will try to answer each of your questions in the order in which they were asked.
Question 1 - Business Activity Code: What you chose is acceptable and there is one other I would submit for you to consider - 455110 which is for Department Stores and Internet Stores. If you do not wish to change what you have chosen in my opinion is perfectly acceptable.
Question 2 - Income Section: Yes this can be confusing and IMO does need some editing for better examples. However, you should choose, under "Items You Can Skip", and for which I have no clue why that title is there, "Sales and service receipts". When you click on "Start" you will go to the page to enter your sales and/or services. I suggest you enter the amounts in the "Enter your own categories below" section so you can specifically identify any types of allocations of sales you wish to make. I have included a screenshot of the sales page below.
Question 3 - Deductions: This is where things may get a bit tricky. If you were not "open for business" in 2022 then most of your expenditures could fall under the "organization costs" category and need to be amortized (pro-rated) over the next 5 years. The depreciable items acquired should not begin depreciation until such time they were put in place when you did open for business. If you were open for business and just did not have any sales what you did is fine. There is no need to upload any receipts but you must keep them available for proof of expense if they should ever be requested by the IRS or State Revenue Department. The normal time period to keep receipts is 7 years but if any assets are put in place that has a longer lifespan, such as a storage warehouse or such, you may want to keep those receipts for evidence for the life of the structure just to be on the safe side.
Question 4 - The answer is Yes. E-Commerce is an approved activity. One moderate warning to keep in mind are the new rules for issuing a 1099-K for sales amounts or instances. I have given you a link below from the IRS on your responsibility there.
