POLL for individual breeders/small business owners

I've always wondered; I mean next year I plan to produce all of 2 clutches of florida kings, which should net me a couple of hundred depending on clutch size...if I was a business I could deduct the expense of keeping them, housing them etc. If it's just a hobby I can't I guess? But it doesn't bump me up a bracket or anything.
Heck, are you required to report income from garage sells, pawnshop sells and stuff like that?

You can deduct some expenses related to a hobby (the key factor is that it has to be a hobby that results in income), though I think there are limits to the loss you can claim - whether it be in terms of how much, or how many years.
In most cases, you don't have to report income from garage sales, because you aren't really making money (think of what you initially paid for the stuff...that exempts money from pawning items, too). For those hardcore garbage salers [sic] and flea marketers that buy items to resell themselves, it can be a different story.
Craft sale income would be taxable.

I don't claim to know all the details - I turn all my numbers over to an accountant at tax time, too.

I remember now that I did briefly consider a DBA. My understanding (after having my memory jogged by DH) is that the primary differences between an LLC and a DBA are as follows:

1. DBAs do not have the liability protection of LLCs (Limited Liability Company); if something major goes wrong (i.e., bankruptcy, lawsuits) those individuals with DBAs are personally on the hook.

2. DBAs' business names are registered within their state but not nationally. So if someone wanted to start a "Ridgetop Reptiles," say, in a different state from Kevin, they could. But if Kevin's company was an LLC, that couldn't legally happen. (Sorry to pick on ya, Kevin )

There's undoubtedly more, but these are the major distinctions that my feeble mind recalls. That's why I was looking at doing an LLC instead of a DBA.

RidgeTop Reptiles said:

Same here... but I use accounting software. My accountant figures everything else out.

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Which accounting software do you use?

Ps: registered as a LLC even through it's currently a "hobby business" just for the "protection" afforded under that category.

RE: POLL for breeders/small business owners

In reply to the thread starter, I think you actually can set up your LLC if you use a PO Box as your business address instead of your residential address. But then you also should be careful that you never have your physical address on any advertising you do and I would also recommend not listing your business in your yellow pages directory. I would also advise that you only use a cell phone # and not a land line. Be sure your cell company only has your PO box as an address, and not your physical address. Its also advisable that your PO box is in different municipality than the one you reside in. This is because many municipalities require local businesses to be licensed and inspected and to pay personal property taxes. They often inspect the personal property themselves and appraise it to arrive at a value. These municipal agencies usually have no authority to enforce their ordinances across municipal boundaries. The purpose of this is not to avoid taxes, but to AVOID INSPECTIONS, which can escalate into disasterous situations, such as your municipal personal property tax agent talking about your business to the health department down the hall. This often results in a visit by them to makes sure you are not an animal hoarder endangering public health, or some dangerous sick freak growing deadly snakes to sell to terrorists. If any of these people talk to the mayor or city council, they may decide to change the laws to limit the types and numbers of animals people can own. You could be forced to get rid of your animals or move at some point. This is exactly what happened to Terry Cullen in Milwaukee. He has had his collection of crocs and anacondas in his home and several business propertys since 1970 and there never was any problem, since it wasn’t illegal to keep large reptiles, until local animal control was taken over by PETA who got the laws changed to make all of his animals illegal and eligible for seizure. This can get ugly!

I have a state sellers permit to collect and remit sales tax with only my PO box. I do not have my business registered with the city because I don’t have to, since my business address is a PO box in a neighboring city that I have no physical presence in. Under no circumstances do I conduct anything that appears to be a business activity from my house. When I have to reveal a physical address, such as to get a PO box, I use the address of a rural vacation property that I own, but where no animals are kept. This is also the address on my drivers license and car registration. No customers ever come to my house. No mail with my business name is ever addressed to my house. No delivery trucks. I ship from the local fed-ex office and have any deliverys held for pick up at the fed ex office. All of my animals and animal-related equipment are sequestered in locked rooms with no appliances or meters that ever require entry by servicemen. I never leave anything in the living areas that would raise questions by visitors-Reptiles Magazine is NEVER left lying around the living room.
I never show my collection to anyone and never allow any of my neighbors on my property and never discuss my activities with them or anyone else with no need to know. I know all of this may sound like extreme measures, but in the state I reside in, it is really necessary to protect oneself.

I am not an attorney and cant give legal advice but this is how I do it and never had any problems by employing these practices.
I hope you find this information usefull. Good Luck

This is exactly what happened to Terry Cullen in Milwaukee. He has had his collection of crocs and anacondas in his home and several business propertys since 1970 and there never was any problem, since it wasn’t illegal to keep large reptiles, until local animal control was taken over by PETA who got the laws changed to make all of his animals illegal and eligible for seizure. This can get ugly!

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That isn't what got him arrested. According to the local papers and police records, he was arrested after a woman accused him of kidnapping and sexual assault. I'm trying to find a link to the dang booking records :-/ I spent some time looking after what happened to see what was going on. Apparently the animals were incidental to the other arrest.

http://www.examiner.com/city-buzz-i...lt-false-imprisonment-mistreatment-of-animals

and before anyone gets too offended, I'm stating he is guilty. I'm stating that what got the police involved was not his collection, but an accusation of molestation/kidnapping (or false imprisonment). The seizures were incidental to that. So it isn't like the cops or mayor or city commish decided "Hey, I don't want his pets in my city, ban them!"

G-D!! I meant I am NOT NOT NOT stating he is guilty! Geez I wish I'd caught that

"The seizures were incidental to that. So it isn't like the cops or mayor or city commish decided "Hey, I don't want his pets in my city, ban them!""

True, but they were seized because they are now illegal to possess in Milwaukee, due to a new law passed about a decade ago, as I stated in my last post.