Professional?

Want another compelling reason to get paid for your work? How about avoiding being labeled a hobbyist by the state and thus not being able to take business deductions? Yup, that is really happening in Minnesota and it can happen to you, too.

If the IRS thinks you aren’t really a professional, if you don’t actually make money, you can end up on the dark side of a nasty audit. If your business is deemed to be a hobby and not a business, you will lose all the business deductions you made against any revenue generated and, boom, tax bill from hell.

So, every time someone asks you to use your work for free (or infringes!), ask yourself “Am I a hobbyist or a professional?”