First register as an LLC business in your state. In NJ atleast is easy. Goto the state page and click on business fill out the form and send in your $150. Until you get your certificate give people your business card and name. Then make it clear you're acting as a business; say "I am doing this as 'beeremoval LLC'." You must make it clear that you are acting as a business and not you personally. If any one sues. They end up having to sue an empty LLC. That's why the call it a limited liability company. The liability is on the LLC's head and if it owns nothing their is no recovery. Otherwise your personal assests (house, car, savings)are on the line. Don't lose everything over a hobby. No matter how profitable/charitable it may be.
Then you can get a bank account, insurance, and other business related stuff. Have what ever insurance you need to cover you and your equipment in case of loss (theft/damage) and long and short term disabilty and life insurance for your self. One fall off a ladder can ruin your income for a very long time, even permanetly.
Keep in mind I am not a lawyer and this is not legal advice. Just some common sense business advice.
I think you can also get a multi-million dollar umbrella policy for pretty cheap, and in that case you don't have to worry about taxes or declarations like you would with a business. A co-worker of mine was "assessed" $30,000 in taxes on a business he hadn't done anything with for 3 years... he was able to successfully appeal it, but you have to pay it first and appeal it second, so he lost whatever interest there would have been on that money for the better part of the two years it took to appeal it.
Not to mention the fact that if you lose a lawsuit, odds are good that the other person deserves some compensation, and they will get it from your insurance if you go the insurance route.
if you sell any bee products at all you have to report it on your taxes no matter what.
an LLC will protect you from property damage but it will not protect you from personal injury claims.
An LLC may also subject you to a business franchise tax depending on your state.
Quote from: randydrivesabus on July 06, 2008, 08:07:09 AM
if you sell any bee products at all you have to report it on your taxes no matter what.
an LLC will protect you from property damage but it will not protect you from personal injury claims.
Actually, you don't have to report the first $600. After that you have to report and pay taxes on it all (including the first $600).
Although, let's be honest... what could be better than getting paid under the table?
sorry Sgt but what you say there is not true. the $600 thing is in reference to the minimum amount required to issue a 1099 to someone who provides services to your business. you are required to report all your income.
as far as under the table money goes thats called fraud....
Randy is right. Taxpayers are required to report all income to the IRS and failure to do so will get you in serious trouble. (as in at a minimum payment of the tax plus penalties and interest). I am not sure I totally agree with the idea that an LLC will not protect an individual from a personal injury claim. While that is true in some instances where the individual has an independent duty, I can envision ways that a personal injury claim could be brought against the seller of the honey or the company that did a cut out and yet there be no action against the individual owner/employee of that company. In any event, any business should carry insurance as should any individual carrying on a business venture.
Quote from: randydrivesabus on July 06, 2008, 04:25:34 PM
sorry Sgt but what you say there is not true. the $600 thing is in reference to the minimum amount required to issue a 1099 to someone who provides services to your business. you are required to report all your income.
as far as under the table money goes thats called fraud....
Oh if you're talking about income tax, yeah. I was talking about state sales taxes.
Quote from: SgtMaj on July 06, 2008, 11:19:12 PM
Quote from: randydrivesabus on July 06, 2008, 04:25:34 PM
sorry Sgt but what you say there is not true. the $600 thing is in reference to the minimum amount required to issue a 1099 to someone who provides services to your business. you are required to report all your income.
as far as under the table money goes thats called fraud....
Oh if you're talking about income tax, yeah. I was talking about state sales taxes.
well thats even worse since you're acting as an escrow agent for the state. and here in VA theres sales tax on food so when you sell honey you are collecting the sales tax for the state from your customer (unless you are selling wholesale). so its like you're collecting the tax then keeping it for yourself.
I'd rather go to court and battle it out rather than have to research this idea and go through the taxes rabit hole....! All this headeach. Just enjoy learning and having the bees and whatever comes comes... can't bare thinking about it, it's like stressing out all day and night that the meteor that wiped out the dinosaurs is comming toward earth any time within the next 13 Billion years. Any way I ain't got much... perhaps after the litigant win they might feel bad about my teacher's monthly salary and end up donating money to get me out of debt lol.
-Rodni
Quote from: Rodni73 on July 07, 2008, 01:12:53 AM
I'd rather go to court and battle it out rather than have to research this idea and go through the taxes rabit hole....! All this headeach. Just enjoy learning and having the bees and whatever comes comes... can't bare thinking about it, it's like stressing out all day and night that the meteor that wiped out the dinosaurs is comming toward earth any time within the next 13 Billion years. Any way I ain't got much... perhaps after the litigant win they might feel bad about my teacher's monthly salary and end up donating money to get me out of debt lol.
-Rodni
Hey, they can't get what you don't have, right? ;)
Actually, "they" can...
I agree. Not worth stressing out about. So, I am going to jump through the hoops and make sure I start out doing things right, legally. Better that than the knock on the door, the flashing of badges...tends to ruin your week. :-D
It isn't about just paying a fine. It could be about losing everything that you own. :shock:
Quote from: toolmaster on July 05, 2008, 06:48:01 PM
First register as an LLC business in your state. In NJ atleast is easy. Goto the state page and click on business fill out the form and send in your $150. Until you get your certificate give people your business card and name. Then make it clear you're acting as a business; say "I am doing this as 'beeremoval LLC'." You must make it clear that you are acting as a business and not you personally. If any one sues. They end up having to sue an empty LLC. That's why the call it a limited liability company. The liability is on the LLC's head and if it owns nothing their is no recovery. Otherwise your personal assests (house, car, savings)are on the line. Don't lose everything over a hobby. No matter how profitable/charitable it may be.
Then you can get a bank account, insurance, and other business related stuff. Have what ever insurance you need to cover you and your equipment in case of loss (theft/damage) and long and short term disabilty and life insurance for your self. One fall off a ladder can ruin your income for a very long time, even permanetly.
Keep in mind I am not a lawyer and this is not legal advice. Just some common sense business advice.
I'm gonna say why have insurance if your an LLC? If it doesn't own anything then what do you end up getting? It's a good idea but you must also keep in mind that you must show a profit every 3 years. Also let's say the company does own some stuff your gonna pay taxes on that property. While it is a good idea you also need to understand that there are downsides to this like the IRS comming down on you with the WRATH OF GOD. So having an accountant and book keeper is very important. Also to take full advantage of your business you must reinvest money back into your company to keep from paying taxes. Insurance for a hobbiest is probably the best way to go if your not making tons of money off your bees that 100 bucks a year you pay to the SCC will never pay off.
Quote from: DrKurtG on July 09, 2008, 07:19:27 PM
Actually, "they" can...
How can they get what you don't own? They can only put you in debt, but if you never make any money, or own any property, they can't get that either.
they can garnish your wages....talk about power!
Quote from: randydrivesabus on July 10, 2008, 07:07:07 AM
they can garnish your wages....talk about power!
And that basically makes you a slave, without any hope of ever getting ahead, a literal nightmare. :'(
...JP
Quote from: randydrivesabus on July 10, 2008, 07:07:07 AM
they can garnish your wages....talk about power!
Not if you don't have any... back to my earlier statement... isn't getting paid under the table the best kind of payment? ;) j/k
I Know a guy that thought being paid under the table was great until he got caught :shock: Believe me , you have no idea the nightmare he went through for several years !!
After seeing what he went through I'll play above the table.
If you do get paid under the table dont take one single check and keep it all under the matress and buy nothing large that you cant explain where the cash came from .
If you are talking a few hundred bucks its probably no big deal but doing business for several years can add up to a substantial amount.
If you are being paid on a consistent basis from someone who keeps records and they get audited, You can expect a knock on your door and they wont be there to help you !
You'll never win against the IRS. State or Feds, they always seem to win.
Well, I work for a large govt. contractor, so I don't get paid under the table... hence the j/k in previous posts.
BTW, all kidding aside, If you do "lose it all" in court, no judge is likely to allow more than 20% of your paycheck to be garnished (unless you make quite a bit of money and can easily afford more than 20% of your paycheck to be garnished)... and they can't take your house or vehicles, they can only put leins against them to take any money from the sale thereof, and of course there are dirty little tricks to getting out of that... like don't ever sell...
Of course, all of this should never have to happen because you should have an umbrella insurance policy that covers your liability in such instances.