Top 3 ways to determine whether you’re in business or if you have a side hustle

It can be confusing to determine whether you’re in business or if you merely have a hobby.

Having a business is where your aim and intention is to make a profit. Having a hobby is something you do on the side in your spare time for fun.

Here’s a sure way to determine whether you are in business or whether you have a side hustle.

ONE….

Do you supply goods or services on a regular and continuous basis? If you just sell items occasionally to friends or local markets, then there shouldn’t be any tax implications for one off sales. However, if you’re regularly selling items including via online, then you’re in business!

TWO….

Do you intend to make money out of providing your goods or services? And do you charge for the goods or services you provide? If you have any intention of making a profit and you're charging for it, then you’re in business!

THREE….

Do you have a business bank account where you keep your transactions separate from other bank accounts? Do you structure your activities in a business manner? If you answered yes, guess what? You’re in business!

If you think you may be in business, then you’ll need to comply with your tax obligations. This is where we can help!