When you start thinking of yourself that way, like a legit musician, other things begin to shift too.
You start to realize that being a musician isn’t just about creating art. It’s also about running the business that supports that art.
And whether you’ve claimed that title yet or not, if you’re spending significant money on recording, gear, or marketing in hopes of generating some kind of income, you’re already operating like a business.
💡 Here’s where it gets real. The IRS actually has a say in whether you’re considered a hobbyist or a business. According to the tax code, you’re a business when you’re pursuing your activity with the intent to make a profit. That means you keep records, have a plan, and care about your bottom line. If you make a profit in three out of five years, the IRS agrees you’re officially running a business.
This matters because a hobbyist can’t deduct expenses beyond what they earn. But a business owner can. You can write off things like your gear, recording sessions, lessons, website hosting, marketing, and even a portion of your home studio.
That’s not just a tax perk. It’s an acknowledgment that your creative work has real value and deserves to be treated with respect.
Beyond the financial side, the shift from hobby to business is mostly about mindset.
Hobbyists create when inspiration strikes. Business owners create on a schedule and follow through even when it’s inconvenient.
Hobbyists hope someone will notice their work. Business owners put systems in place to reach people intentionally.
Hobbyists spend whatever’s left after the bills are paid. Business owners set budgets and track expenses so they can reinvest and grow.
It’s not about losing the joy of making music. It’s about protecting that joy by giving it structure and purpose.
When you start running your music like a business, you stop waiting for validation. You start making decisions that move you forward. You treat your time and talent as valuable, because they are.
Maybe you’re starting to see signs that this is where you are. You’re earning consistent income from gigs, lessons, or licensing. You’ve invested in a better recording setup. You’ve started to plan releases instead of winging it.
Or maybe you’re simply tired of feeling like what you do is more like wading in the shallow end of the pool instead of diving into the deep end.
If any of that sounds familiar, you’re not just dabbling anymore. You’re building something real. And that deserves to be recognized, by you first.
Once you claim it, if you need help with all the formal stuff like business setup, tax deductions and budget planning, you're definitely going to want to check out the 5 Days Of Deals we're offering next week for Black Friday week (see below).
You'll be especially interested in Thursdays Deal on our Music Business Builders Bundle. Set a alarm for Thursday at 9 AM ET/6 AM PT so you don't miss it because it's only available for 24 hours.
Sign up for the Early Bird List to make sure to get the "5 Days of Deals" emails next week (and get a killer bonus when you grab any of the deals).
Always in your corner,
<3 Bree
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