Hobby, or Small Business?

I'm trying to build up a photography portfolio, because eventually I'd like to start my own business. With spring coming up I'm starting to think about high school senior portraits. In my opinion, that's a great way to start building up a portfolio, so I want to get as many clients as I can. What I don't know is if this would qualify me as a small business or if I still fall into the hobby category. Basically, I would be doing the photographs and only charging for the cost of the prints. If I was traveling a great distance, I would charge for gas, but I'm not looking to make profit at this point in time, just build up a portfolio and get my name out there. Also, if I advertise by hanging up a few fliers, would that make any difference in whether my photography would still be considered a hobby?

Technically, it is a hobby unless you register your business. However, I would urge you to try to make a business out of it if you are up for it. I strongly believe that your hobbies can be your best business opportunities. When I was 14, I started a custom drawing business, as I liked to draw, had no income, and wanted to find a way to make some money at it. It's seven years later, and I still do it. Of course, to a lesser extent, but I still do it. I also operate a landscaping company, as I did a lot of landscaping around the house and thought it would be nice to work for myself and earn much more per hour than I would have elsewhere. The business is in it's third year of operations and highly successful. Lastly, I have been interested and involved in the stock market, thus I started an investment firm, which earned over six times the market average last year. I strongly believe that the best businesses are those whose owners are in it for the fun of it rather than the money. If you are only going to charge someone for the costs, I can imagine that you would be able to build a portfolio rather quickly. I have charged between $75 and $500 for my drawings, and I compiled a substantial portfolio within a couple years. If you are going to advertise, you have to be careful, as if you do not register it as a business (which costs between $50 and $200 for paperwork) you should make it clear that you are trying to build a portfolio and not turn a profit. You might want to consider setting up a website to direct people to, with some sample photos and some information about yourself, as this would be a great way to get your name out there. If you have the money, I would encourage you to set up a business, as it would be a great piece for your resume when you go into the job market. Just my opinion, I hope it helped.

Best of luck!

Brendan Prewitt

according to the IRS\
once you list yourself as a buisness
you have five years to show a profit or they consider what you do is a hobby

Why does it have to be "or"? I have a small Pampered Chef business that I tell everyone is just a "hobby." When I file taxes I do list my business expenses and any income from the business. I believe you will have until the end of the year to decide whether or not this is a business and how you will file it. So for now, keep track of your expenses. If you go ahead with your business later on you'll be glad you did!

Heather