An LLC is a business. There’s no other way around it. The IRS will revoke your LLC if you are not running it as a business or under protected non-profit clauses.

Don’t take my word for it. Please consult with someone who has owned LLCs or even sole proprietorships for more than 5 years before charging ahead.

I’ve been running either an LLC or a sole proprietorship for 7 years, but I’m just random random internet person.

Also 1/3 of tax law are the actual words of any given law. The other 2/3 of tax law is executive interpretation/enforcement and case law from around the country.

There are some really interesting cases, even where tax lawyer firms get it wrong. In one instance a law firm tried to deduct their daily lunches as business meetings, and the tax court said no, even though it clearly states in the text of law that this is permissable. The judge basically said you can’t declare a daily lunch as a business meeting.

Other court documents can be found here:

https://www.taxnotes.com/research/federal/court-documents

You may want to read through this as well as some case law on the subject before jumping to conclusions.

https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes

Not necessarily. You just need to demonstrate that you are running it like a for-profit company would, and with profit seeking motive.

Instead of a for-profit LLC, consider filing the business as a 501c charity.