tax question: switching over from hobby to business?
Pete C. wrote:
Exactly. If it's to be a real business and produce real income and it
isn't a simple office / computer based business, it *needs* to be housed
in a separate commercial location, i.e. industrial park suite. Once you
have a business with machines, then the insurance, zoning, OSHA, fire
code and other headaches require separation from your residence.
Well, I have a Bridgeport mill converted to CNC, a Sheldon 15"
lathe, a Pexto shear and a finger brake, a HUGE Lincoln
square-wave TIG welder, a PC board etcher, a surface mount pick
and place machine, and a laser photoplotter in my basement!
Since it is MY shop, a sole proprietorship, OSHA hasn't any
reason to poke around. (They'd most likely find stuff to
complain about, like no guards on things.) There is no way my
business could make money in an industrial park rented block
building. I'd be bankrupt in 3 months.
Jon
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