Setting Up Business - Requesting Advice

So...I went through all my reptile receipts from 2008. After looking at the total year expenditure, I think it's time to talk to an accountant and examine how best to set up small business...since I plan on having my reptiles for quite some time, and hopefully will have a few offspring to sell this year. Of course, and more acquisitions to come.

I'd like some thoughts from folks who have some experience with the business end. Specifically how the business itself is structured and most importantly, the critical start-up steps that need to be taken.

It would be nice to write off some of these expenses, money which I'm going to spend anyway :-)

Please PM or email me with any advice or input. icatsme@mac.com

Thanks ever so much!

Is breeding snakes a hobby or a business venture for you? Writing off expenses sometimes is not worth the 15-25% taxes they take from you.

Chris

i would urge you to look into the livestock laws in your state and also if exotics are covered under those. alot of breeders typically are run like farms

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Originally Posted by Clear

Is breeding snakes a hobby or a business venture for you? Writing off expenses sometimes is not worth the 15-25% taxes they take from you.

Chris

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Agreed.

As a hobby you can write off what you make with the expenses for that year. As a business you have to pay into social security and other minimum tax stuff as well as save records and be subject to an audit. if you dont make a living at it, it may not be worth it.

My advice, fly under the radar.

id like to add that being a business also requires you to do sales tax. where a farming there of allows for alot but doesnt require as much as what a retail business would entail. either way neither would get you factory direct pricing on anything, but if you bought enough at one time it could

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Originally Posted by West Coast Jungle

Agreed.

As a hobby you can write off what you make with the expenses for that year. As a business you have to pay into social security and other minimum tax stuff as well as save records and be subject to an audit. if you dont make a living at it, it may not be worth it.

My advice, fly under the radar.

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It's come to my attention that some may have misconstrued my meaning when I said, "under the radar" as hiding income from the government.

That was not my intention whatsoever.

Whenever one has concerns about taxes one should speak to a CPA.
That is what I have done. I have my own business, not breeding snakes, and my accountant has told me my snake hobby is just that a hobby and not subject to the same tax scrutiny as my real business. Just like if I made cupcakes for a bake sale or had a garage sale, these are obviously not businesses.

My comment "flying under the radar" meant keep it as a hobby, which it is until the time it is becomes an an actual business, thus on the radar. In other words dont classify it as something it is not.

I am in no way an accountant but do pay one and thought I would share some advice that was given to me.

Now back to our regularly scheduled programing:)

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Originally Posted by West Coast Jungle

Agreed.

As a hobby you can write off what you make with the expenses for that year.

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Can you explain this part a little more in detail? Like an example? Thanks!

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Originally Posted by iCandiBallPythons

Can you explain this part a little more in detail? Like an example? Thanks!

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If you spent $5,000 on your hobby the most you can write off is $5,000 against $5,000 of sales so basically its a wash. You can never show a loss, thus no tax advantage. Ends up being a big 0 on your return and not really changing much. Thats why hobbies are not under the scrutiny of a business.

A business is different, even if your business is negative(showing a loss) you still owe a minimum business/self employment tax, have to pay into social security and be responsible for keeping accounting records for several years because you could be subject to an audit.

This is not the case with a hobby so why would you call your hobby a business.

Now once again I am not an accountant.

So please dont do your taxes based on some thread you read on the internet. Everyones tax situation is different. There are sole proprietors, partnerships, LLC's and many other variables, business taxes are way more complicated than I could ever explain and I am no expert. I am just going by what I have been told by my accountant/tax preparer from my particular situation.

Please refer to a CPA when preparing you income taxes, making any investment or business decision.:)

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Go talk to an accountant and don't listen to advice given on a forum. You can take a loss on your personal taxes from a loss in your business.

This is the wrong place to seek such advice. Talking to an accountant and the advice given would be well worth the fee for the hour.

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Originally Posted by Rudd

Go talk to an accountant and don't listen to advice given on a forum. You can take a loss on your personal taxes from a loss in your business.

This is the wrong place to seek such advice. Talking to an accountant and the advice given would be well worth the fee for the hour.

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I completely disagree with you. Why not come to a forum that is littered with breeders who are running a business successfully and pick their brain?

Maybe someone has shed some light on a topic which the OP may have overlooked....I have already seen one example in this thread.

We are here to help....please dont tell the posters what advice to take, and not to take. In the end, it is up to the OP whether or not they want to take the advice of an individual.