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Hobby vs. Business - Which Are You? - RD215
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:18:09
- More information
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Synopsis
Is your side gig a hobby or a business I had a conversation with a fellow designer recently who works full-time for an ad agency and periodically takes on small design projects on the side. He called it a hobby. That got me thinking, what is a hobby and does what he’s doing qualify? Hobby vs. Business Standard disclaimer: I’m not a lawyer, accountant, tax expert or business advisor. The following is solely my opinion. Hobby: A hobby is an activity done for enjoyment, typically during one’s leisure time. A hobby encourages the acquisition of skills and knowledge in that area. Business: Business is the activity of making money by producing or selling products such as goods and services. Simply put, business is any activity or enterprise entered into for profit. By those definitions, any design work you do where you get paid should be considered a business venture. At least you would think. When does a hobby become a business? According to the IRS, a hobby is an activity that an individual pursues without the in