Your tax impact and what needs to be done for taxes will all depend on the legal entity you have set up and the type of business you are operating. The easiest entity to set up is a sole proprietorship, which would declare either you, or your husband, as the primary owner of the business, and you would file a Schedule C with your individual 1040 tax return to claim self-employed income. Your net income (total earned minue total spent) will become your income which will display on your 1040 return. You'll have to pay income taxes on the net income, and self-employed taxes (Medicare and Social Security taxes). If you owe more than $1,000 in taxes for the year, you could be subject to estimated payment penalties when you file your taxes. You'll need to make estimated payments throughout the year, based on the amount you expect to owe in taxes, to avoid penalties.
If you are set up as a partnership or corporation, you'll need to file a separate business tax return. Partnerships and S corps are known as "flow-through entities" because they don't pay tax directly on their net income. Instead, the net income flows over to the personal tax return of the owners. You and your husband would have to pick up the net income from the business as personal income on your returns and pay taxes on that income (or deduct the losses against other income if the business has a loss).
Partnerships and corporations also have different requirements for how the owners are paid for their time running the company. Partnerships do not pay wages to partners, instead they pay guaranteed payments which are taxed as self-employed income. S and C corps pay wages to the owners who are active in the business. You must pay yourself a reasonable wage for your work and pay payroll taxes on those wages. The net income from an S corp still carries over to the personal return, but there are no self-employed taxes that apply, just income taxes. Your wages paid through payroll would already be taxed and you would get a W-2.
For your employees, you will need to review the 20 factors test on whether you have employment tax issues by paying them cash. If they qualify as independent contractors, you are better off writing a check to them rather than paying them cash since you'll need a paper-trail to help support the deduction of paying them for their services. You'll also need to issue 1099's to them if you end up paying them $600 or more during the year. If you don't follow the rules for paying independent contractors, you could be subject to backup withholding taxes, which could be equivalent to 33% of the amount paid to each individual. If they should be employees, you'll need to switch to paying them on payroll and you can record the cash payments as advanced payroll to get caught up on payroll taxes. You'll first need an EIN if you don't already have one, so that you can set up payroll accounts. You'll also need to register for employment taxes in your state and any localities if they assess income taxes.
For specific tax questions related to your business, I suggest contacting a tax professional as soon as possible. This should have been done prior to setting up the business and beginning operations, but you can do this now to resolve issues that have already occurred. Good luck!
