At What Point Do you Need a Business Liscense, CUP, etc.?

[artgecko]

Hi guys,

I'm working towards starting my first breeding project and have seen some recent discussions online about licensing, etc. I won't be breeding for at least 2 years and would only expect an average of 1-3 clutches a year but these discussions have given me pause about what is required and if I could expect to make a profit over the costs of these licenses if I am required to get them.

I know that the limit for non-taxable other income is $600 at the federal level and that if you file as a business, you are also required to take out self-employment taxes. Based on the number of animals I will be working with, I am pretty sure that I would want to still file with my individual income taxes(not as a business). I am assuming that for all profits exceeding $600 I will be filing them with my taxes to both the fed and state, so that is not really the area I have questions about.

My main concern is that I have no idea at what point I would need to acquire a business license, a CUP, or even an animal dealer license.

I live in Georgia and read on a recent discussion that the ADL is only required if you sell 30 or more animals a year (which I probably would not), but am not sure on the other two. I have not been able to find any information locally about a CUP (it is not listed on the city forms page, etc.) but have read mixed things online... some say that you only need it if selling directly from your home (i.e. clients coming to your house) while others say you need it regardless.

I know that most of you do not live in the same state as me, but I'd like your opinion on whether or not someone selling any amount of snakes (even 1-4 per year) would have to have all the licensing involved, etc. I'm not asking for recommendations on how to "dodge" the law or taxes, just what most people do. I want to stay on the right side of the law on this and comply, but if complying will take so much money that I will end up with a net loss just from that...then I may have to reconsider breeding at all... I recently learned that GA now requires all people vending at expos (like ATL repticon) to pay a $450 fee... That changed my mind about vending there once a year to sell off stock as that would likely eat up all of my profits.

I know that some people get around this by only doing local deals in cash, but I'd like to be able to sell online, accept paypal, and ship animals, so I'm looking for a way to do that legally. At the same time, I'd only like to report and license what I am required to and not go all out with all the licensing if it is not needed for someone in my position.

I'd appreciate any input you guys have, even if it is not directly related.

Thanks for your time and help!

[Stewart_Reptiles]

Yes you now have to pay to get a pet dealer licence for a year if you intend to vend at any show in GA, whereas before you could pay $50 on the weekend of the show and be done, so if you decided to do 1 show a year your cost would be $50.

To sum up the pet dealer licence

Pet dealer or pet dealership: any person [includes businesses] who sells, offers to sell, exchanges, or offers for adoption dogs, cats, birds, fish, reptiles, or other animals customarily obtained as pets in this state. Excludes breeders who sell 30 or fewer animals annually if they bred the animals and if they don’t have sale tax number or local business license. (GA. CODE ANN. § 4-11-2)

As for taxes you can file your taxes as a hobby/business or a business this will come down to what you think works best for you and this should shed some light https://ball-pythons.net/forums/show...e-s-the-Line-)

[Albert Clark]

You need to check with your state and local business licensing agencies. You can do that online and register for a "certificate of authority" to operate a home based business. You will then be required to pay state taxes on a quarterly basis. The identification number that you receive on your certificate of authority should be what most reptile expos require to be a vendor but the laws vary from state to state. Once you have reported your sales and paid the appropriate state taxes for about 2 years the state tax agency may move you to annual recording and payment of state taxes. You don't need to be a LLC or Incorporated right away bc that will subject you to more scrutinization overall. But you will need to protect your business going forward.

[artgecko]

Yes you now have to pay to get a pet dealer licence for a year if you intend to vend at any show in GA, whereas before you could pay $50 on the weekend of the show and be done, so if you decided to do 1 show a year your cost would be $50.

To sum up the pet dealer licence



As for taxes you can file your taxes as a hobby/business or a business this will come down to what you think works best for you and this should shed some light https://ball-pythons.net/forums/show...e-s-the-Line-)

Deborah- It was my understanding that you had to pay the full $450, no matter if you attended one or multiple shows. Is that correct? I know the $50 per show was how they did it in the past.

Albert Clark- I have not heard anything about a "certificate of authority".. I will have to look that up. The discussions I had read online only mentioned the ADL, CUP, and business license.

[Stewart_Reptiles]

Deborah- It was my understanding that you had to pay the full $450, no matter if you attended one or multiple shows. Is that correct? I know the $50 per show was how they did it in the past.

Albert Clark- I have not heard anything about a "certificate of authority".. I will have to look that up. The discussions I had read online only mentioned the ADL, CUP, and business license.

Correct whether you attend one or all shows in GA (there are 4 in Atl 1 in Savannah and 1 in Perry) you have to pay the $450 pet dealer licence.

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