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Message:: [QUOTE="Kasia, post: 1861547, member: 31533"]Tim.... also you will want to consider that if you can't make a profit in X number of years then the IRS is liable to consider it not a business, and can go back and re-visit your previous years 'write-offs' etc. Starting a business on the cheap can be done. There are a lot of people who pull this off. But many if not all of those people IMO put so much time and effort into their business that it's not funny. Are you the type of person who will devote constant effort to get your business off the ground and into the red? Could be. But you may want to start with a business plan rather than just diving in. Make one that shows that with X number of dollars investment, how you plan to make the business succeed (that is turn a profit of some sort) in 2-3 of the next 5 years. If you can't even do this on paper, defining your plans and sources, who you plan to market to, and why, etc., it is not too likely that you will do it in real life without a plan. And if you can't make a profit from this, even in one of the next five years, then it's not a business. I think the IRS has time tests in years as to whether it is a business or not and if you did, say 3 years of losses you write off, which are items you could also be using in your chosen hobby, then the IRS is liable to deem it a hobby and re-assess all your taxes as if you had no business. Choose wisely, young Tim.[/QUOTE]