Quote Originally Posted by Zedleppelin
This sounds to me more like fear mongering than actual truth. I've had many home based businesses, one that was making over half million a year and never needed any type of home based business license. The IRS or the DOR could care less that the businesses were home based (unless you are claiming a home office deduction) just as long as the income was reported which is fine by me, all the equipment, nutrients, water, electricity, mileage on my car, crop loss, etc will all be deductible. Also I havent had a chance to look into it but I also believe there are tax benefits for agriculture. Maybe I'll claim I am now a farmer and the govt can send me a check every year.
If your business is medical marijuana, you might draw additional scrutiny. I'd be up front regardless and get every tax benefit you can squeeze out of them.