I breed as a hobby not as a business so I don't have to worry about justifying a $1000 vet bill on a $100 snake.
My husband and I do have a small business where he does gunsmithing and custom firearm builds, as well as consignments, services like transfers, etc. If you are going to run as a small business versus a hobbyist this is what you need to do:
- Figure out if you want to run as a sole proprietor, or if you want an LLC.
- Register with the state as a business, which includes getting set up to collect and remit sales tax. Most small businesses file quarterly but if you do a large volume (think WalMart) you may have to file monthly.
- If required, register with your county. My county requires it because it collects its own taxes on businesses each year based on your balance sheet.
- Set up a GOOD system for tracking invoices and expenses. I use QuickBooks.
- Be able to prove your expenses; my business was audited three years in a row and I had a receipt for every claimed expense.
- Keep a mileage log, you'd be amazed at how much you drive each year for business.
Take tax questions to a CPA who can analyze your specific business and advise you.
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