I would strongly recommend that you talk to a business counselor before you do anything especially spend money. You have to determine whether you’ll start a web based business or one with a store front.

The counselor will most likely advise you to write a business plan which is very good advice because it will force you to dig out all of the start up details and the costs of starting a contracting company and force you to also understand all of the aspects of this business including the customers you’ll concentrate on (your market ) and how you’ll go after them.

You’ll need to register the business with your government and make sure that you have any local licenses if any are needed where you live. All of this will come out in a business plan.

Try this link :
http://www.ychange.com/small-business-consulting-articles.html and read some of the articles especially the ones about a business plan and starting a business.
Good Luck