RE: [AlpacaTalk] Alpaca business questions
Ken,
The sole proprietorship has advantages and disadvantages. For what you are looking for it would probably not be the best option. If you have a day job (like many of us), a SP allows you to take any business loss against your ordinary "day job" income and thereby pay less tax. However, an SP does not protect you against the morass of attorney folk lurking around every dirty dark corner. This is where the insurance companies make off with a share of your money. With an alpaca business there is currently a lot that can be written off. You still need to pay for it, but the ability to reduce the amount of taxable income from your day job is a definite consideration for many of us.
Peter Lundberg
Alpaca Blanket Project
10868 Siegmund Rd SE
Stayton, OR 97383
503-769-9466
503-551-5015
AlpacaBlanketProjec
To: AlpacaTalk@yahoogro
From: alpacatalk@gmail.
Date: Thu, 25 Mar 2010 09:42:49 -0700
Subject: Re: [AlpacaTalk] Alpaca business questions
Ken:There are may be some who have better advice than me, but we incorporated & elected Sub-S status.I don't know about Kentucky but in Ohio it takes only three forms.Downloading and filing articles of incorporation with the State, requesting a Tax I.D. # from the IRS andonce those steps are complete, downloading & filing the sub-s election.The cost was $125You can have an accountant or attorney do it for you if your not comfortable, but of course it costs more.If you're going to have a farm store and sell product, in Ohio you also need a vendors license. ($25)This allows you to charge sales tax on in state sales of product. Which you're required to do.Also, out of state shows will furnish you a temporary sales tax number if you're selling product in a booth.You have to charge that state's sales tax rate and file with them.Sub-S corp provides a level of protection from your personal assets and affords many benefits.C-Corp provides a greater level of protection of personal assets, but is a little more stringent andcostly to maintain.Would also recommend a farm/ranch or liability policy since you will be having the general public onyour property, or liability like a dog biting someone, or an animal gets loose and causes an accident...... We're a litigious society it seems so everything helps.As far as tax benefits I would see your accountant or ask around the other Kentucky owners to seeif they use a particular accountant that is familiar with the benefits of alpaca ownership.Also Ken. What is the best feed store in and around Owenton?Best regards,GaryGary SimpsonTri-Valley Alpacas, Inc.Brookville, OHPH .513-919-8235----- Original Message -----From: KenSent: Thursday, March 25, 2010 12:17 AMSubject: [AlpacaTalk] Alpaca business questionsI am wanting to take my new appreciation for these wonderful animals to the next level. I want to make my farm my primary income. So I am wondering, have you obtained a "Duns" number ? Have you incorporated or become an LLC ? I know state laws vary greatly but I would like to hear from you. What have you done ?
Ken Hoh
Alpaca Hoh Ranch
Owenton, KY.
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posted by Chaddo at 6:59 AM
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