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system
requirements for filing business taxes?
user
while she can certainly get an llc or ein, it isn't necessarily required or needed.  she can file as a sole-proprietor on her (or your joint) taxes by filling out a schedule-c addition to the 1040.  any income or losses will pass through to your existing income situation (from w-2's and such). the general requirement for filing as a business in this regard has nothing to do with any minimum income, revenue, or size.  it is simply the intent to treat it as a business, and unlike a hobby, the overall intent to earn a profit eventually. if you're currently reporting the 1099-misc income, but not deducting the expenses, this would be a means for you to offset the income with the expenses you mentioned (and possibly other legitimate ones).  there is no "2% agi" restriction for schedule-c.
assistant