Manner in which the taxpayer carries on the activity
Separate books, business bank account, written records, marketing plan, branding — concrete evidence you treat this as a business rather than a casual pursuit.
Separate business bank account, accounting tool or spreadsheet ledger, registered DBA or LLC, marketing plan, written pricing strategy.
Some records but no separate accounts; receipts in a shoebox; you sell when asked but do not actively market.
Everything mixed with personal accounts, no records, no DBA, no marketing.
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