In this Gorfine, Schiller & Gardyn podcast interview, Laura Shuman, Director, Small Business at GSG, discusses everything that one needs to know to turn a hobby into a viable business from a financial and tax planning perspective.
For many, the idea of turning a hobby into a viable business is a dream come true. If one can take a passion project and transition it into something profitable, it’s the ultimate combination of commerce and pleasure.
According to a 2021 study, more than 55 percent of Americans want to turn a hobby into business but have yet to make the leap. Some of the factors holding back budding entrepreneurs are concerns around proper financial and tax planning.
In this podcast interview, Laura Shuman provides insightful tips for helping anyone launch a hobby business.
Here are some key highlights from this interview:
- Key tax implications to consider, particularly around the differentiation between personal and business expenses. (:35)
- How the classification of a hobby versus a business impacts taxation, and the criteria the IRS uses to distinguish between the two. (3:10)
- The potential tax deductions, and the documentation required to support these deductions. (5:30)
- Common tax planning mistakes individuals make when initially starting a business, and how to proactively address these issues. (8:00)
- Compliance requirements regarding federal, state, and local tax regulations, including any licenses or permits for operating a business. (10:54)
We would like to thank Laura for sharing her insights with us! Please contact GSG here to learn more about how we can help you make your dream of turning your hobby into a business reality.
Categories: Podcast, Tax Planning, Small Business
