Why Breeding Cats Is a Business (Not a Hobby)

Running a business is never easy. And if you’re juggling life as a hobby breeder, it’s even tougher. You need patience, razor-sharp organization skills, attention to detail, self-discipline, and—above all—the ability to make smart decisions. Without these core skills, any business will sink. Cat breeding is no different.

So let’s strip away the fluff and look at managing a cattery through a business lens. Spoiler alert: breeding cats is a business. There’s really no such thing as a “hobby breeder”—not when you’re balancing expenses, producing a product, and marketing kittens.

Why “Hobby Breeder” Is a Myth

Let’s get real: if you’re breeding pedigree cats with intent, you’re not a hobbyist—you’re a business owner. The moment you aim to make a profit, Uncle Sam agrees.

Managing a cattery requires serious skills—think meticulous record-keeping, strategic decision-making, and unshakable self-discipline. Without these, any business (cat-related or not) is doomed to fail. So why cling to the “hobby” tag when you’re putting in the work of a pro?

The IRS Guidelines on Hobby Income

Starting with good old Uncle Sam, as soon as you take steps to make a profit, your activity is no longer a “hobby”, and is now considered a business.

Is Cat Breeding Profitable?

s Cat Breeding Actually Profitable?

The internet is loaded with doom-and-gloom posts telling you that cat breeding barely breaks even. Guess what? That might be true—if you run your cattery like a hobbyist.

But if you manage your cats like pets and your cattery like a business, profit is 100% possible. Profit margins hinge on three things:

1. Smart spending—cutting costs without cutting corners.
2. Healthy, thriving cats—fewer medical expenses.
3. Strategic pricing—knowing your market and charging accordingly. (Here’s how to price your kittens).

And let me be crystal clear: There’s nothing wrong with making money from breeding responsibly. Don’t let broke breeders or cat hags guilt you into thinking otherwise.

Deducting Expenses as a Hobby Breeder

As of 2018, the IRS no longer allows you to deduct any expense toward “hobby” income. I think this rule alone will have a small cattery rethinking how they classify themselves as a hobby or a business. With a cattery of 6 adults and a few litters a year, my food and litter expenses ALONE are $800 per month. That doesn’t include toys, veterinary bills, cat trees, build-outs, or electricity.

If you’re still waving the “hobby breeder” flag, just make sure you’re reporting all your income and claiming zero expenses. Otherwise, you’re skating outside the IRS guidelines—and that’s risky.

What Does Local Jurisdiction Say about Hobby Breeders?

Now that we’ve covered the facts about what classifies a hobby breeder versus a business breeder with the IRS, lets look at it from a local jurisdiction standpoint.

Each state has regulations when it comes to breeding animals. The chart below will list the U.S. State, and the limit on the number of kittens that can be sold in one calendar year to be considered a “hobby breeder”. Anything more than what’s listed here, you are classified as a pet dealer.

Note: If your state isn’t listed here, then the research hasn’t been completed yet. You can check back, or send us a link with the information and we’ll add it to the table.

Breeding Guidelines by State: Limits on Litters or Intact Adults

The table below shows the state laws on whether or nt you’re considered a “hobby” breeder or a “dealer”. If classified as a dealer, your cattery may require additional licensing. Data reflects state laws as of March 19, 2025. Limits may vary by locality—check your county or city regulations for specifics.

Why the Stigma Around Cat Breeding as a Business?

Here’s the deal: Most breeders don’t want to admit they make money breeding cats. There’s this weird, outdated notion that if you profit, you must be a “bad breeder.” Absolute nonsense.

Running your cattery professionally—prioritizing health, temperament, and breed standards—isn’t mutually exclusive with making money. You can do both. And you should.

If you’re still in the research phase of how to become a breeder, look at it like launching any other business. There will be start-up costs, overhead, lean months, and profitable months. That’s how business works.

Learn to manage your cat breeding business like a professional

It’s okay to make money as a cat breeder. If you’re doing everything that you should be doing that makes you a reputable cat breeder, then you deserve to make money. Don’t let anyone convince you otherwise.

The concern with breeding cats as a “business” is when breeders become more concerned with making money instead of the health and preservation of their chosen breed. That’s where the most negativity takes its shape. While it is okay to make a profit from your efforts as a breeder of Pedigree cats, it should never be your first priority.

No matter what the business is, there will always be bad people. Unfortunately, breeding cats deal with the lives of small, helpless animals that can be affected by the greed of people that are doing it for the wrong reasons.

How to Start a Breeding Cattery Business

If you’re looking for information on how to start a breeding cattery business then you’re in the right place. We’re here to help anyone who has passion and enthusiasm for Pedigree cats and wants to be part of the positive movement.

• First, educate yourself by enrolling in the Complete Guide to Breeding Pedigree Cats
• Then, Design and Setup your cattery
• Next, Acquire your Breeding Cats from Reputable Breeders
• Finally, Mate Your Cats and Produce Healthy Kittens

It’s always best to start off with a very small number of breeding animals in your cattery. If you’re not 100% committed, then just start off with 1 or 2 females, and find a stud service. Ease your way into the world of breeding cats and make sure that you CAN handle it on a day to day basis. Then you can transition from a hobby breeder into a Certified Breeder of Pedigree Cats.