Do you register your business?

[Huffnpoof]

If you are a breeder and sell animals (small time I mean), do you know if it is a requirement to call yourself a small business and register with your state? If so, how do you go about doing this?

I'm not looking to get into breeding but rather pet type services such as training and dog walking in my area as supplmental to my regular income. I'm only looking into it as part time, but has anyone done this before? How do you register this type of business with the city and state for tax purposes and such?

Thanks!

 

[Spoof]

It's the same as any small business with exception to selling animals. It depends on where you are located (In city/Out of City/Unincorporated County) If you sell animals and make over $500/year and do not have a storefront you must be USDA certified unless it's a domestic pet (chins are an agricultural animal). It isn't enforced that I've ever seen but it's the law and you can be fined for it.

If you make over $400 for any business venture you have to declare taxes and it becomes a hobby business. I'm not sure where the breakover point between hobby and actual business comes in, but that's what you get an accountant for. They run $75 - $200/year and can save you a bundle, the rate depends on how many forms they have to fill out and how much you make. )

As far as registering, it depends on what you do. There's a lot of small if's that most people don't bother with, like zoning. If you run a business out of your house and your neighbors get peeved, they can turn you in and you can get fined for it. I've never heard of it happening, but there's a reason they have business/residential zoning - so someone can't come set up a coal factory next to your house.

For what you are doing if you're worried just meet with and question an accountant ahead of tax season to see what you can write off so you can keep track of it. I wouldn't bother until you make a profit though.

 

[Huffnpoof]

Thanks Spoof. I don't plan on running it out of my home, so I'm not super worried about neighbor complaints. I really apreciate your help.

 

[fanofdmb84]

Usually you need a business license, which as far as I know run about $50 a year. They are not really enforced if you are just part time or out of your home, and again, it depends on what you do. One of my neighbors whined to the local town hall just because they saw my car in my driveway (my car has my business name/website on it). They "reported" my business, but because all of my services take place outside of my home, I'm wasn't doing anything wrong and all they did was tell me someone called it in.

Licenses are through your town hall, not the state. I think it might be different if you are incorporated or an LLC or something, but I'm not really sure, since I am neither. I consider myself a small business owner, and will do my taxes as such and leave it at that.

 

[alli713]

If you are selling anything or making income you need to pay taxes accordingly. Even if you think you're a hobbyist or don't make enough you still need to report the income. Even if you loose money that year, it's a requirement to declare it.

Every state is different as far as what licenses you need though. You'd do best to visit your local department of revenue and ask what you all need.

I know of many people who make and sell things out of their home come to find out that they were supposed to declare and collect taxes on their income from their "hobby" and are penalized because they haven't in the past. It's a common occurrence on Etsy. So technically anyone selling anything online like on the forums here should be paying income tax on what they're making.