Joel,

I try to avoid talking taxes but, i see no benefit here for you in this regard. To take the allowable deductions as a business you could simply file schedule C. If your business can be considered a true business for profit your gains will be taxable and on years with a loss it will lower your tax burden.

However the IRS has rules on what it conciders a hobby and a business. One of the rules for it being a for profit business is that you show a profit at least two of five years. This could be the toughest to meet. But there are many rules they have for a hobby.
But the difference in a hobby and a business for profit as it matters to us is that a hobby can only write off deductions to the point you had income, where a business for profit can have a loss that offsets against your taxable income. There is a spot on the tax forms to enter hobby expenses and income.

Rick