I was on Design Sponge (a great great blog about everything design) today just moseying around and I happened to stumble upon this super awesome article about how small business ladies around the USandA should do their taxes or if they should even consider themselves business women in the first place. I thought this was really interesting because a year ago, this was just a hobby for me; I was a degree-holding hostess at a restaurant, pulling 12 hour days and hating my life and JJV was my only stress reliever. Soon after, I had a series of revelations; 1. the economy wasn’t getting any better, 2. I hated having “a normal job” (I realized this at SCAD and right after I graduated) and, 3. being a business owner and networking with people was my true niche.
In order for you to call yourself a business person/owner, you must answer a few of the following questions to get started…as per the IRS:
o Are you expecting to make a profit? (this would indicate a business)
o Do you participate in your activity just for fun? (Hobby)
o Do you depend on the income from the activity? (Business)
o Do you spend a significant amount of time on the activity? (Business)
o Have you changed anything about your activity to make it more profitable? (Business)
o Do you have the knowledge needed to carry on the activity successfully?
o Have you made a profit from similar activities in 3 of the past 5 years? (Business)
o Does your business make a profit in some years? (Business)
o Do you pursue the activity in a businesslike manner?