One piece of advice that I would give is don’t think you have to file as a business every year. My accountant will tell me if it makes sense to file as a business or as a hobbyist in any given year. This is mostly due to sales. Some years I make enough money to be able to offset a fair amount of expenses. But the IRS doesn’t like it when a business loses money year after year. Therefore, during low-sales years, if I have high expenses (with a professional studio, I always do), then I file as a hobbyist and lose out on many of the expenses I would normally file as a business. When it comes to art and taxes, the government really doesn’t care. It just doesn’t want to pay for all your losses and it wants to collect on your profits.