Hobby or Business? What the IRS Cares About
The IRS decides hobby versus business by how you run it, not what you call it. The factors, the 3 of 5 years rule, and why business usually wins.
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Do You Need a Business Bank Account to Sell Homemade Food?
The short answer Not always by law. If you sell as a sole proprietor under your own name, you can usually start with a separate personal account and be fine. But the moment you form an LLC or sell under a business name, a real business bank account becomes the clean, and sometimes required, choice….
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Cash vs Accrual Accounting for a Small Food Business
Disclaimer: This is general information, not tax or accounting advice. Accounting-method rules, especially the ones about inventory, get technical fast and depend on your specific numbers. For anything beyond the basics here, check IRS Publication 334 or talk to a tax pro. The short answer Cash accounting records money when it actually moves: you count…
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Bookkeeping Basics for a Tiny Food Business
Disclaimer: This is general information, not tax, legal, or accounting advice. Rules and thresholds vary by state and change over time, and every business is different. For decisions about your taxes, talk to a qualified tax professional. The short answer Bookkeeping for a small food business is just two habits: record every sale and every…
