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Dec
04
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The essential thing here is that the IRS is going to look at your intent. Did you intend to make money?
You must intend to make a profit or it’s just a hobby. Here are some of the tangible indications that you have really embarked on a business enterprise.You must intend to make a profit or it’s just a hobby. Here are some of the tangible indications that you have really embarked on a business enterprise.
1. Register your business name by filing a “doing business as” (DBA) statement with your local county clerk.
2. Use business cards and stationery.
3. Take out a company listing in the Yellow Pages.
4. Keep a log of the business contacts you’ve seen during the year.
5. Advertise in local papers.
6. Send promotional mailings to prospective customers.
7. Set up a business bank account.
8. Get a business telephone.
9. Buy a postage meter and a copy machine.
10. Hire at least some part-time help.