How Far Can You Take Your Hobby Before It Becomes a Business?

Ok, I’m sad to say there’s people on here with really poor advice. Here’s what you should do: contact your local score chapter and see about getting hooked up with a mentor. It’s completely free and will be far better advice than the crap I’m seeing people say here.

No, you don’t need an llc yet, you don’t need an ein yet, you likely do not need a business license but you may still need to register with your state for sales tax depending on what you’re selling. Your hobby becomes a business when you are trying in earnest to make money from it. The irs won’t pay much attention if you’re only making a few hundred bucks but it pays to file anyway.

/r/smallbusiness Thread