Reptile business...

I was just wondering because I have spent around $4000-$5000 on snakes, lizards, enclosures, heating equipment, feeder rodents and insects, website, various memberships and accounts, uniforms (i made these wicked DH Reptiles Shirts ;)), bunch of office type supplies to keep myself organized, and various other things. I have yet to produce any reptiles to sell, and will not have the chance to until this time next year. I keep receipts for everything so I could get an exact number of my expences. I really would like to get where I need to be on all this 'business' stuff especially before I drop a few grand on some more animals.

Like I said before, I can do budgets, handle and invest money, predict costs and make cost estimates....but when it comes to the actual function of a business entity itself...i have no clue how to start one or keep up with one. Is there a good place to get info on this stuff, before i go the whole nine yards and get an accountant to handle everything....I like to be somewhat prepared and educated so I dont sound like an idiot.

Ok that makes sense. Thanks for your patience with the clueless. lol

Daniel, keep in mind that you can amend tax return for up to three years.


So keep all your reciepts, etc, but don't claim the deductions yet, then in a couple years, if you have made a profit breeding/selling snakes, you can go back and claim those deductions.

I should keep records from all the stuff I'm spending money on for the snakes..

Dumb question alert - do I have to have the actual paper recipts, or can I keep a record on my computer? I know I don't have every recipt for the racks and cages and whatnot..

As long as you can prove you spent the money, you "should" be OK.

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Originally Posted by monkeywrench133

As I understand it, when you create an LLC or incorporate, you create a separate, independent entity that conducts business. That's where the layer of protection is . With a sole proprietorship, YOU are the business. The tax issues may be very similar to an LLC, but if something goes wrong, your butt is directly in the line of fire.

I don't believe there's any cost in setting up a sole proprietorship, other than printing the letterhead.

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If you're a single owner of an LLC that is a home based business, legally, your butt is just as much in the line of fire as a sole proprietorship. There is case law after case law of personal assests being ceased in civil actions against solely owned LLCs.

The real advantage to forming an LLC is that once you reach a certain level of income and business activity, the tax breaks are better. Once your start dealing with things like payrolls and material investments in the 10's of thousands of dollars, an LLC is the best way to go. For a reptile breeder doing 10K a year or less selling snakes, there is nothing wrong with a sole proprietorship and best of all, it's free. :D

-adam

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Originally Posted by Shelby

Dumb question alert - do I have to have the actual paper recipts

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It's really a good idea to keep them. I certainly wouldn't want to show up to an audit without receipts for deductions that I took ... could be painful. ;)

-adam

I'll keep them from now on. I didn't think I'd ever need them (dumb)

Thanks for the advice about finding the right sort of accountant. I'm not sure either what Mike and I will eventually set up as we are partners in any future breeding/selling ventures so it needs to be set up as such.



~~Jo~~

I plan on finally getting around to forming an LLC this year. Cost is anywhere from $200-$300, but you can set it up yourself with the proper forms and paperwork. I'm doing some research now and hopefully will have that set up soon.


Most small hobbyist/breeders here in FL don't set up anything as they don't want to claim any income from breeding. I know a few breeders producing & selling between $20K-$100K a year and don't ever plan of setting anything up at all. Whether this will bite them in the end some day is another story!

There are two things in this world I don't mess with...God and the IRS!!