I am only providing some links that address the Hobby vs Business aspect of this question.
https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business
https://www.irs.gov/pub/irs-news/fs-07-18.pdf
https://www.irs.gov/newsroom/heres-what-taxpayers-need-to-[product key removed]g-taxes-on-t[product ...
https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...
