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Michael Koblic Michael Koblic is offline
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Default tax question: switching over from hobby to business?

Absolutely. Recently, in the process of changing my insurance broker for a
local one, I mentioned that I make stuff in the garage and managed to sell a
whole whopping $100 worth of it.
The fecal matter hit the fan. To cut the long story short:
1) If I did not mention it and claimed later and this info came out they
could have denied any claims.
2) They are prepared to cover risks now but only if I "stay small". For
instance no web site and no business cards. Also they will not cover product
liability.
3) I have to weld "25 feet away from the buildings". We fought them off on
soldering!

--
Michael Koblic,
Campbell River, BC

"Pete C." wrote in message
ster.com...

Don't forget insurance either, commercial general liability, possibly
product liability since you're fabbing stuff. Your homeowner's insurance
will almost certainly be an issue. Your best bet will be to lease a
warehouse / shop bay in an industrial park which will remove a huge
number of issues vs. operating a commercial fabrication business at your
residence.