LifeinAsia - 1:55 pm on Jul 2, 2010 (gmt 0)
Hi LukeM and welcome to WebmasterWorld [webmasterworld.com]!
It sort of depends on why you want to classify it as a business (as opposed to a hobby). For tax purposes, there can certainly benefits to being identified by a business. As Buckworks said, if your expenses are more than your income, you can take a net loss to charge against future income. But if you are classified as a hobby, you can only deduct expenses up to your inome amount.
Another thing to consider is location- what are the local regulations where you live/operate? These days, it seems that local governments want to squeeze every last cent out of businesses and individuals and some are rewriting their rules for what they consider businesses and how much to tax them. So it might be better to NOT be classified as a business to stay under the radar.
Also, while $200/month in the United States won't even pay the rent, that same income in some countries could support an entire family.