Yes, I set up my hobby as a business primarily to benefit from tax advantages like writing off expenses and avoiding sales tax on new acquisitions. It has helped streamline my finances and make my collection more sustainable. However, it also comes with added responsibilities, like bookkeeping and tax filing, which can be a bit of a hassle. Overall, if you have a significant collection, it might be worth considering.
Another thing to keep in mind is the operational side of running your hobby as a business. Managing inventory, keeping track of sales, and ensuring timely shipping can be challenging. I’ve found that sometimes the process can slow down due to a bottleneck in operations management . This happens when one part of the process can't keep up with the rest, causing delays and inefficiencies. It's something to be aware of if you're considering turning your hobby into a business.
