Generally, if you are trying to earn a profit, it is an attempt to earn money and is self-employment (SE). If your business claims a net loss for too many years or fails to meet other requirements, the IRS may classify it as a hobby, which would prevent you from claiming a loss related to the business. If the IRS classifies your business as a hobby, you'll have to prove that you had a valid profit motive if you want to claim those deductions. You do not need a license for tax purposes - see the link above to see the difference between ''hobby'' and SE income.
Yes, you are entering your income and expense items in the correct spot. Use the General (Desktop version) or Other Self-Employment Income (Online version). The 1099-K doesn't have its own spot like the 1099-misc or 1099-NEC. And yes, all business expenses go to their category in Other Common Business Expenses except - except for vehicle expenses - those have their own section just above the Other Common Business Expenses section. And you can use Supplies Expense for inventory purchases assuming your average sales are less than $26 million averaged over 3 years - See this FAQ re: reporting inventory.
And yes, your business is probably considered a qualified business for the qualified business income deduction (QBID) - See this FAQ.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
