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Pro tip: I ran my side biz as a sole prop for 3 years before an insurance guy asked one sentence that made my stomach drop
I sell custom wood stuff on the side out of my garage in Boise and never filed any paperwork for it, just took payments on Venmo and called it a hobby. Back in March a guy at the farmers market asked if I had liability coverage, and when I said no he goes 'so if a kid gets hurt on one of your pieces, they come after your house.' I went home and read up on it and turns out I was supposed to register with the state and get an EIN like two years ago, and there's a real difference between a hobby and a business in the eyes of the IRS. I filed the paperwork in April and got a basic policy for $600 a year. Has anyone here actually gotten hit with a fine for running too long without registering, or do they just make you back pay?
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nancycooper8d ago
I got a $400 penalty plus back fees when I finally registered mine.
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