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When does a hobby become a business? It sounds like a simple question to answer. But, that’s not always the case. The IRS has rules for what qualifies as a business, and your entrepreneurial idea might not be making the cut. Why should you know the difference between hobby and business? Whether your venture is a hobby or a business affects your tax liability. If the IRS declares it’s a hobby, you can’t deduct business losses and expenses on your tax return. You can only deduct your hobby expenses up to the amount of income you earn. Let’s say you want to start a T-shirt printing business. You spend $1,000 on a new screen printing press. In your first year, you only make $50 in sales. The IRS audits you and decides your company is a hobby. Hobby loss rules dictate that you can only deduct up to $50 you earned. If you deduct  business expenses  when you’re not a real company, you can get some heavy penalties. Treating a hobby tax deduction as a business tax deduction on you

The Top 100 Low-Cost Franchises Franchises with lower costs of entry can make it easier for you to plan to be your own boss. Here's a look at the strategies behind low-cost franchising and some resources on where to find successful opportunities. Creative Ideas Arts & crafts business Creativity consultant Interior designer Jewelry Doing What You Love Freelancing your expertise Hobby business Sports business Product Sales Cart/kiosk Direct sales eBay Gift basket Swap meet sales Even More Ideas 6 Senior Care Ideas 9 Pet Businesses 25 Part-Time Business Ideas 105 Service Businesses Weekend Businesses Ideas B-to-B Businesses Bookkeeping Business support Consulting Desktop publishing Manufacturer's rep Medical claims Security specialist Seminar production Transcription service Virtual assistant business Personal Services Child-care Elder Care Financial Advisor Organizer Personal concierge Personal shopper Remode