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CPA advise on small business startup
Posted on 2/8/22 at 6:30 am
Posted on 2/8/22 at 6:30 am
I have a beekeeping hobby where I have been growing the past few years. All my money collected from honey sales has gone directly into continuing growing to the point I am now. This year it is looking like I can make a profit while still investing into more equipment/tools.
Most of my hives I keep on 80 acres in Mississippi. This land ownership is divided amongst family members; none of which manage it or pay taxes on. I pay all property taxes.
I plan on setting up an appointment with CPA, but wanted to educate myself a bit more. I’m assuming LLC ? Would farm exception be an option as well?
Most of my hives I keep on 80 acres in Mississippi. This land ownership is divided amongst family members; none of which manage it or pay taxes on. I pay all property taxes.
I plan on setting up an appointment with CPA, but wanted to educate myself a bit more. I’m assuming LLC ? Would farm exception be an option as well?
4
Posted on 2/8/22 at 7:04 am to Columbia
I don't know the answer to your question, but you might want to try to find a cpa with other Farm clients. Those rules change so much that it'd be best to have one in the know currently.
Good luck with your biz!
Good luck with your biz!
Posted on 2/8/22 at 7:05 am to Columbia
Only my opinion, and I'm not a CPA, but I would consider placing the property itself into a Trust, have the property re-zoned as Agriculture for tax reasons, and document your prior "losses" in the years leading up to profitability.
I did something very similar for a couple of timber properties, each one on it's own LLC (due to th fact they are in different states).
G/L
I did something very similar for a couple of timber properties, each one on it's own LLC (due to th fact they are in different states).
G/L
Posted on 2/8/22 at 1:19 pm to Columbia
The first thing you need to do is start a bank account that is only used for this business, and operate 100% out of it.
An LLC is great but at the end of the day you don't "need" this for legal reasons for bee keeping, I wouldn't think. Its going to cost you more money from a CPA.
If you have a land and other things you should have an LLC. But I'd think you could also keep this extremely easy, get some business or personal umbrella insurance and the business bank account and call it a day.
An LLC is great but at the end of the day you don't "need" this for legal reasons for bee keeping, I wouldn't think. Its going to cost you more money from a CPA.
If you have a land and other things you should have an LLC. But I'd think you could also keep this extremely easy, get some business or personal umbrella insurance and the business bank account and call it a day.
Posted on 2/8/22 at 2:31 pm to Columbia
Schedule F on the 1040 will be your friend.
LLC - you can do a single member LLC if you want for liability reasons, and it would have no impact on tax issues.
I guess someone could sue you for getting sick off your honey?
I don't know if an umbrella policy will cover you if you are operating this as a business. A business liability policy would. Check with an insurance agent.
Farm exception - are you talking about for property tax, like an ag exemption? You just need to follow whatever the ag exemption rules are in MS. Need to get the property classed as ag if it's not already, I think. Check with the assessor in the county.
LLC - you can do a single member LLC if you want for liability reasons, and it would have no impact on tax issues.
I guess someone could sue you for getting sick off your honey?
I don't know if an umbrella policy will cover you if you are operating this as a business. A business liability policy would. Check with an insurance agent.
Farm exception - are you talking about for property tax, like an ag exemption? You just need to follow whatever the ag exemption rules are in MS. Need to get the property classed as ag if it's not already, I think. Check with the assessor in the county.
Posted on 2/8/22 at 3:22 pm to LSUFanHouston
Form LLC, run group health insurance through it for you and your family.
Posted on 2/9/22 at 4:27 am to LSUFanHouston
quote:
guess someone could sue you for getting sick off your honey?
That’s really my biggest concern right now.
quote:
Farm exception - are you talking about for property tax, like an ag exemption?
Yeah pretty much. Wasn’t sure if this was even necessary especially since I’m not the owner of the land…just the tax payer.
Posted on 2/9/22 at 5:49 am to Columbia
Are there not rules to help protect you as a small bee keeper? I thought there was some regulations to protect small ag like that? To reduce your liability.
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