Quote Originally Posted by swansonbb View Post
All - here's a little info for you...

1. Business licenses offers no liability protection. If you're worried about the liability involved with your business, you need to look into different corporate forms, i.e. forming an LLC, an S Corp, etc... Do a Google search, talk to an attorney or CPA for more info.

2. Having a business license doesn't give you different tax treatment. You can legally form a business just by saying you're in business - i.e. a sole proprietorship. With a sole proprietorship, you report your income & expenses on a Sch C on your federal tax return (I have no info about your particular state). What you need to be careful about is whether you can claim breeding as a legitimate business or whether the IRS would classify it as a hobby. There's a lot of info about this on the web. Most of us on here would likely be classified as hobbyists, and disallowed any deductions.

A (very aggressive) tax attorney once told me, "you can deduct anything you want as long as you aren't audited". I offer no advice on corporate forms or tax deductions other than be careful and do your research.

I hope this helps!
In the state of California you need to operate under a business license if claiming to be one. If you make a profit for 3 out of 5 years you must claim a business and not a hobby. I just went thru all this. There are many more tax breaks, in this state at least, when your a business versus being classified as a hobby. The type of business doesn't matter, its based on profit and legality of the business...

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