Most soapstone is extremely soft, 1 and 2 on the Mohs scale. There are a few hard varieties, however. You can check the hardness of the stone by trying to scratch it with your fingernail. If it doesn't scratch, use a penny, then a knife blade.
Stones that your fingernail or a penny scratch are easy to cut with the average handsaw. If the stone is too hard to cut easily with a handsaw, use a saw with a carbide blade.
You can use regular wood carving tools to carve soft soapstones. If the stone is too hard for wood carving tools you will need to use stone sculpting tools.
Steel files work for all but the hardest stones. You'll need carbide files for the hardest soapstones.
You can use regular rotary tool and drill bits for crafting and drilling all but the hardest soapstones as well.
For burnishing, use wet/dry sandpaper. Wet sandpaper keeps toxic talc dust out of the air. Start with 80- to 120-grit sandpaper and go to finer papers until you reach the desired finish on your product. Papers as fine as 500 attain glossy finishes. Wash the dust mud out of the paper frequently for effectiveness.
You can use rotary tool sanding bits for hard to get to areas. Unless you have a rotary tool that allows wet sanding you will need to wear a dust mask while sanding and ventilate the area. Dry sand outdoors if at all possible.
Finishing is more of a preference than necessity. You can finish stone at a later time if it becomes splotchy as it ages or if you want to darken the stone.
Applying olive or mineral oil is the usual method of finishing soapstone. Car or floor wax can also serve as finish. You don't need sealers because soapstone isn't porous.