Florida Business vs Hobby

We run our own business which is consulting and raw materials.

You need to discuss options with legal and tax counsel. If you are being paid by someone for consulting or selling the items you make on the side, that all has to be reported and you myst have a sales and use tax form as well as a W-9 and tax id number.

Depending on how small you stay.. you may or may not have to be as detailed as we are. I also must file tax returns and Sales and Use for the state quarterly and pay all payroll taxes, etc monthly.

Before you jump into anything, make sure you have all the details locked in because the last thing you want is the IRS on your back for not doing something correctly. The IRS does not buy the "I didn't know that" excuse.

Bottom line, if you generate income, you report it or you take the chance of large fines for avoiding the proper paperwork.

Best of luck to you!!

The moment you turn your hobby into an income-generating activity, you have to report your income to the IRS. Whether you owe income tax on it or not, I am not certain, but you MUST report it.

You don't have to set it up as a business; it can go on your personal return.

You could try an online business. My gift basket, flowers and candle business has no inventory or quotas, you receive your own website and all the training and support you need to succeed. All the accounting is done for you, You will
receive a 1099 for tax purposes at the end of the year. It is a fun business with loads of opportunity. wwwpatriciacasper.labellabaskets.com

I'm a licensed CPA and can answer your questions (no charge), but it's too much to type. Message me your phone number if you want to talk.

Good luck!