Turning your hobby into a successful business might be the dream, but when does the IRS consider your passion project a legitimate business? It's not just about the income; it's about the intent, effort, and the businesslike approach you put in. This video breaks down the critical IRS guidelines you need to know for determining if you've moved beyond a hobby. Whether you're a budding entrepreneur or a hobbyist at a crossroads, this video is your guide to understanding where you stand in the eyes of the IRS and how to pivot towards success. Intro: 0:00 IRS Indicators: 0:27 Businesslike Manner: 0:40 Intending to Make a Profit: 0:58 Making Profits: 1:19 Future Profit from Appreciation: 1:40 Dependence on Income from the Activity: 1:55 Losses Due to Circumstance: 2:05 Changing Methods of Operation: 2:32 Knowledge Needed to Be a Successful Business: 2:46 Operating Out of Your Home: 3:03 Pursuing Licensing & Certifications: 3:12 Profits: 3:21 Get Help With Your Small Business: 3:34 Outro: 4:09 Looking for Professional Accounting Services? At CSI Accounting & Payroll, we specialize in helping small-to-medium-sized businesses streamline their accounting and payroll processes. If your passion has evolved into a business, it might be time to consider professional accounting services that can save you time, money, and stress. Click the link below for a free consultation and see if we're the right fit for your growing business. 👉 https://www.csiaccounting.com/schedule-a-consultation Not quite ready to chat? That's okay! Learn more about how new businesses can benefit from partnering with CSI: 📘 https://www.csiaccounting.com/ Stay Connected: Don't forget to like, share, and subscribe for more valuable insights into turning your business ideas into reality. Have questions or topics you'd like us to cover in future videos? Drop a comment below! 🔔 Subscribe for more tips: https://www.youtube.com/channel/UCcn7aVMw8KEZW9Wgo-QEZww 📱 Follow us on LinkedIn for updates: https://www.linkedin.com/company/csi-accounting-services/ Thanks for watching. See you in the next video!