Hello everyone! 2022 will be my first year breeding. I’ve been planning this for five years and its finally here almost. I am starting very small, mostly because of space restriction. This first season I will only have a single pair of western hognoses and 2023 I will have 2-3 female hogs and 2 blue tongue skinks. So the main thing I am struggling with is, do I legalize the income with an LLC or should I ride out the first year and see how things go? I would like to clarify that I am by no means focusing on the money, although I hope to build myself up in a few years I am starting small and anything extra that happens to be made is just icing. I already have a name that I would love for my endeavor, am I able to use that without legally being a business?
I would consider speaking with an accountant, they will have more information regarding the legal benefits and downsides to forming an LLC. I personally only breed as a hobby and have not set up a business/LLC/DBA but if I expand I intend to. (Probably in another couple years with the number of holdbacks I’ve built up)
As far as a name goes, you can start using one, it is something a lot of people get excited about doing, trying to build an identity for themselves and their animals. I do wish though it was something people wouldn’t do when an actual business plan isn’t something they have in mind. (Like John and Jane Doe with their 14 different snakes, all different species, 2 turtles and a hamster deciding they are now “Insert Name Here”).
Thank you very much for your input. I hope i didn’t give the wrong impression, I do completely plan/hope to expand in time. Do you have any tips/hints or otherwise helpful information as a breeder? Not necessarily pertaining to the original question, I just figured I could seek any knowledge available before I start.
You didn’t give a wrong impression at all.
Best advice I can think to give is finding local or semi local keepers you can develop a good relationship with. I have half a dozen friends in the hobby within a reasonable drive from me and we tend to provide an ear for one another as well as moral support when needed. Other than that, don’t skimp on husbandry equipment. The first part of the 2000s I’d find myself trying to save money and ending up spending more in the long run than I would have if I’d just purchased quality to begin with.
Thank you, I hadn’t considered trying to find local keepers. I don’t know where to start trying to find some but I will give it a go. Thank you for your input!
A name means nothing. Don’t know what country you are in, (asume USA I am in the UK) But most capitalist societies expect TAX to be paid on any profits, regardless of a name. A name means little to the tax people.
Keep records of income and outgoings. If no profit, no tax.
sales minus expenses = taxable profit.
If you are in the USA, this discussion below might help too. But I advise you to read it all.
I have a ‘name’ for my snake business ‘Ascended Royals’ i am also in the beginning, so my expenses well outweigh sales. So no tax worries. (as long as I have records to prove that)
My other main business does make a profit, name or not, so the government wants plenty of tax for that.
I definitely agree with @randall_turner_jr. If you plan to make it a business, definitely start calling it by a name, if not, maybe you shouldn’t.