At what point does doing small jobs with no employees, no advertising, no building, become a small business? If you have a truck with tools and do jobs or lawn mowers and equipment are you required to pay taxes on this equipment and have a license? If so what if you get caught without? Most of my.work is on a 1099. Is everyone that gets a 1099 a small buisness? If not when does it become one?

By the time I take my deductions for medical amd buisness expenses I don't make a lot. I just enjoy working some, and use any extra for vacations and stuff. I'm not wanting to have to work more to just to afford more taxes. I would probably retire again if that was the case. Like I said it's more a hobby with a small profit than a buisness. Most of my work is 1099

I think, do not quote me on this, there is a monetary income threshold. But some people have expensive hobbies, like guys who buy and swap vintage cars a few times a year. Those numbers can get big.

I am not sure I understand your situation but I think what you describe would be technically called a sole proprietorship. Are getting 1099s from clients who pay you?Are they written to you personally or to a business entity you own? Are you deducting health insurance from your income or are you referring to personal medical costs? Why you would have to pay taxes on equipment you have already purchased?

Depending on your situation you may want to talk to a lawyer or a good accountant. You can set up a business in different ways (LLC, S-Corp, etc.). Each one has certain advantages and disadvantages but I don't know enough about your situation to speak to it.

The licensing issue would be a state/local question. The tax on income issue would be an DOR/IRS issue.

It's $$$CASH on the Barrel Head with my Retirement side Gig!!

I imagine if you are providing a service for profit, its a business that will require business license, etc.

I had a buddy who wanted help replacing some floor boards on the front porch on his house. I brought all of my tools, truck, etc. and we were working on it because he has no tools and honestly I would feel bad for the birds if he tried to build a birdhouse. He left to go to Lowes for more materials and I stayed working on the porch when the building inspection department pulled up. Apparently the nosy neighbor called them because she did not see a business license sticker on my truck. They asked me if this was my house, and when I said no, they started giving me a ration of shucks requesting my business license and permit for the job. I tried to explain the situation and that I was simply helping a buddy out, but ended up having to get the homeowner on the phone to explain to them that it was his house and was doing the project himself so no permit was required. They actually stopped me from being able to do any work until he returned home and showed him his ID with the address on it. I know this has no real impact on the original posters question, but my point is that someone is always watching and could get you in a pickle if you were doing it for profit I think. The only profit I was getting was the cold beer he supplied while we worked.

JKlep hit on why you need a business license. If your work is on a 1099 then Uncle Sam is already getting his cut. The only folks that care about the business license are the city folks selling the business license.

Most little towns want you to buy their license. I never would until they made me and most didn’t.

If you are reporting the income of the jobs I would think you would be better off forming an LLC and writing off a lot of purchases you make through the business.

For something like that all you have to do is a simple Schedule C tax form with your personal filing; you don't have to form an LLC, etc. Your accountant will probably charge an extra $100

"Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if: Your primary purpose for engaging in the activity is for income or profit. You are involved in the activity with continuity and regularity"

I heard you was running that new whoorhouse down at ft. morgan..... Also heard you was running that gig by hand til you can get some girls hired..... ...

That's just being a handyman

Thought about such......But the Employee situation down there.....they'd probably not be paying attention and BURN UP a perfectly GOOD DICK!!