Merely having a license is not the same thing as having a business. You need to have income or at the very least an active profit motive.
The IRS expects that if you start a business, you intend to make money at it. If you don't, your business is likely to be a hobby, in which case you can't claim expenses to the extent of your hobby income.
To determine if your business is a hobby, the IRS looks at numerous factors, including the following:
· Do you put in the necessary time and effort to turn a profit?
· Have you made a profit in this activity in the past, or can you expect to make one in the future?
· Do you have the necessary knowledge to succeed in this field?
· Do you depend on income from this activity?
· Are your losses beyond your control?
