[HNW] 1597 Sibmacher

[Lavolta Press]

I registered my publishing house as a business 14 years ago, and have 
been renewing the license ever since.  So it's not an issue for me.

If you're running a professional business making real income, you need 
to not only pay your taxes but convince the IRS that this is a real 
business and not a hobby. Otherwise they may disallow your deductions of 
expenses; or think you are fishy and want to audit your and your 
spouse's (if you are married) entire income, from all sources. I've 
never been audited but I've been told that even if you have nothing to 
hide it's a time-consuming nuisance.

If you're running a hobby business, and not deducting any expenses, 
perhaps it doesn't matter as much. I don't know the exact tax rules for 
hobby businesses, never having run one. I've always worked on a strict 
for-profit basis.

I personally think that in anything involving the tax authorities you 
should be absolutely squeaky clean. So does my tax accountant, and I pay 
him handsomely for his advice and services (but I deduct his fees from 
my income taxes!). When I started the business I found it cheaper and 
more efficient to read a couple of basic business books than to throw 
myself on him with _all_ basic questions.

Other people's mileage may vary. Whatever. Who cares. I don't need 
business advice. I was just trying to help any newbie publishers on the 
list stay out of trouble. They are free to handle their taxes however 
they like, as far as I'm concerned.

Fran
Lavolta Press Books on Historic Costuming and Needlework
http://www.lavoltapress.com


SNSpies at aol.com wrote:

> I would recommend talking with your tax person before going to all the 
> trouble, which may, of course, be necessary, of registering as a small 
> business.  Some states may require it; others may not.  You will always, 
> of course, need to report income and expenditures on your yearly 
> personal tax forms and pay both state and federal taxes. 
>  
>