I have to have a city license and mine costs me about $200 a year! Higher than anywhere else around here.
I have the license in my personal name because its cheaper and that way I don't have to have to worry about changing the name if I change my business.
I then have my reseller's certificate that is used to collect and turn in my sales taxes.
I claim my income on a schedule C on my taxes. I make sure and keep my receipts and usually am not much in the black, if at all.