What is a hobby?

• A hobby is a pastime or leisure activity conducted in your spare time for enjoyment or pleasure.
• Personal enjoyment and satisfaction.
• You can do it in your own time or when people contact you.

What is a business?

• You’re in business, if your activity, as a whole, is commercial with an aim to make a profit.
• You can apply for various statutory business registrations to use in your business transactions.
• You can register a website once you have registered your business.
• You’ll have access to various government concessions for business.
• You can establish a business identity when selling to customers and other businesses.

How do I know if it's a business or a hobby?

It is important to understand the difference between a hobby and a business for tax, insurance and legal purposes.

Key questions to consider:

• Is the activity being undertaken for commercial reasons?
• Is your main intention, purpose or prospect to make a profit?
• Do you regularly and repeatedly undertake your activity?
• Is your activity planned, organised and carried out in a business-like manner?

If you answered yes to most of these questions, you're likely to be running a business. Talk to filingdigits.com’s advisor for effective consulting on business registration & compliances.