|
|
 |
|
|
|
|
|
|
|
 |
Page 11 of 20 |
What is a business? |
 |
A business is an activity performed for profit.
The difference between carrying on a business and a hobby is that a business has an expectation of profit, is run in a systematic, continuous and regular businesslike manner, and has ordinary commercial principles governing it (such as business and accounting records). A person who collects and sells baseball cards on a regular basis from a store is engaged in a business, while a casual collector, who will occasionally trade a card or two with friends is probably engaged in a hobby. The distinction is important for tax purposes as losses from a business are tax-deductible, while losses generated from a hobby are not.
|
| « View All General Business Law Questions Pages |
Next Page » |
|
« Post Your Case |
|
|
|
|
 |
|
|
|
|
State Law Center | Legal Links | Site Map | Privacy Policy | Media | About Us | Contact Us