First thing you need to do before you start a business is write a VERY detailed business plan....layout every expected and possibly unexpected costs. You'll need a bit (on average 80k capital) to start.

My advice to you would be...use your hobby status to start your business....but still write-up a detailed plan for all of your goals/expenses/etc. It will help you stay focused and organized with what you want to acheive with this "side business" and give you a good look at what the costs will be long term for a small scale breeding biz.

Also, doing it in the way of starting small and reinvesting in your business you have very little debt upfront. Yes you COULD writeup a business plan, get shop space, and buy a large quantity of high end morphs to start.

Just some thoughts from me, I'm by no means an expert...I've been in your position about thinking of starting a business...I decided to keep it as a fun hobby, I don't think many people realize how much work it is to maintain such large collections of reptiles.

With whatever you do, good luck.

-Jason