Forming a Hobby

Bench Racing

by Ryan King

The concept of the legal formation of a business is one that could be considered valuable for an automotive enthusiast.

No, I don't mean actually forming a business or a nonprofit.

What I mean is that portions of the processes for forming a business or nonprofit have applications for an automotive enthusiast's hobby.

Forming a business or nonprofit generally involves certain steps such as defining the enterprise and putting it in writing. This definition process is very helpful for keeping a business controlled by providing a framework to compare its operations to.

An automotive hobby is no different.

Defining the extent of a hobby is helpful for keeping it from organically growing in directions which aren't either intended or manageable.

As an example, performing routine maintenance on your beloved automobile is considerably less involved than body repair or even replacing an engine. But it's easy to get tricked into going down a deep rabbit hole – one so deep it ruins your hobby or interferes with your life because you are no longer able to support it with one or more of your resources.

While some hobbies are small enough that they can be easily managed by your informal desire for casual entertainment and within the confines of a household budget, more involved hobbies that include actual vehicles, expensive capital investment, and complex projects need a defined framework to keep them from growing out of control.

That's where the processes used for business legal formation can help, by providing your hobby with a concrete foundation to build on. In that way you'll know what your intent is and what it isn't, which will allow you to gauge whether or not what you want to do, or about to do, is a good idea for you and the continued enjoyment of your pastime.

Ryan