For those who work consistently at their hobbies and even make money from their actions, it may be important to note that many of these ‘hobby jobs’ are now beginning to require a license in order for an individual to be able to continue what they are doing. In example, a recent news report has focused in on a guitarist who was performing music for the sake of the hobby, because he enjoyed it. Since he was a talented performer, sometimes he would earn money for short gigs when he used to perform at the college many years ago. However, he would never consider his hobby to be a business because to him, it was always just something that he did for fun and his own enjoyment.
Within the past month, he received a bill for two years worth of business license fees, which also included a bill for delinquency on payment. He also received a bill for a business license to cover this year, which came accomplished by a worksheet that request information about the tools of the trade and what he typically had to use in order to maintain his ‘business’. However, he is not the only one to have received this type of notice from the area. Part-time landscapers, sports officials, handymen, and various types of musicians generally receive some type of notice that they have to have a business license in order to continue with their work. It’s fairly typical for those who are residing in Virginia.
Although this isn’t common for those who are working in other states, there are times when it would be possible for it to occur. Generally, this is based on the amount of money that you earn from your hobby and whether or not you are reporting it on your taxes. If you are making some income from your hobby and then you report it on your taxes as you are supposed to, if it reaches a certain amount, the IRS will generally consider you to be a business or working on some type of self-employment basis. As a result, they are generally going to tax you and are going to request that you should have some type of licensure so that you can continue providing these types of services to the public.
In most cases, for individuals who are living in Virginia, they never realize that they need to have a business license for some of the hobbies that they do in their spare time. If you’re mowing lawns to make some extra money on the weekends and you’re making substantial money from it and then listing it in your taxes as you are supposed to, it’s likely that the IRS is going to consider that to be a business and request that you invest money into getting your business license and paying your taxes.