Thanks for the informative answer! Very helpful. Your question about claiming the businesses as hobbies is valid. As I understand it, income needs to be reported and taxed regardless. However, if the income is from a "hobby", you lose the ability to claim any deductions to offset the income. The businesses do have a significant gross income, with accompanying large deductions, hence the barely breaking even. If I could not claim the deductions as a hobby, my tax bill would increase significantly.
