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The IRS offers guidance regarding whether an activity
is a hobby or a true business endeavor. Tax-wise they are treated
differently. An entrepreneur should consider the following questions:
Do I intend to make a profit?
Am I operating in a business-like manner (advertising,
office space, licensing, etc.)?
Have I changed or modified the methods of operation to improve profitability?
Do I have the knowledge, or access to
knowledge, necessary to operate the activity as a successful business?
Has the activity made a profit in the past? Have
I made a profit from other, similar activities in which I have been involved?
Do I depend on income from the