business start-up help

[Blake Scout]

Hello there everybody. I'm looking to legitimize my maple production. I've never owned a business before, let alone started one up. I'm having trouble deciding which business model to fall into (LLC, Partnership, LLP, etc...) Any advice on which would be best for a small operation (300-500 taps)? Thanks.

[Thompson's Tree Farm]

I'd suggest a sole proprietorship and filing a schedule F tax form.

[GeneralStark]

I have started working with an accountant and recently shifted my sole propietorship to an LLC. It will depend upon your situation and where you are getting funds to purchase equipment, but an accountant can provide the best advice.

[BreezyHill]

This is really a great question. The best person to answer is an accountant or the outfit that does your taxes. I switched from a private accountant to an accountant that is H&R Block affiliated. The difference was large on savings to me. Our taxes are rather complicated due to the farm is split by the NY & Vt line, have a on farm business and raise angus for meat, feeders, and wholesale to restaurants, syrup, and supplies of all types for farming. Since rules on depreciation and other business items are changing constantly it is best to have the h&R updates. H&R does offer a tax comparison and this is a way to ask these questions for little or no money, while seeing how your current preparer is doing. With out all the personal details it is hard to make a good recommendation as to which will afford you the most $$$ in your pocket and the least in the IRS's hands.

Ben

[Yellow Wings Maple]

An LLC for sure, it provides better liability protection for you. since it would be a sole proprietorship LLC you would then fill out schedule F (farm) for your taxes.

[Bucksaw]

I am an accountant and I agree with the LLC recommendation. I would be a little weary of anyone affiliated with H&R Block...while some there may know there stuff it is fairly easy to get a job there and you never know who you are dealing with. You don't really need any formal education and they often don't have much more than the standard training they give their seasonal preparers. BreezyHill, don't know your exact situation, who you are dealing with at H&R, but you are correct about your situation being complicated, and from my experience I wouldn't recommend H&R Block. You may save some money on tax prep but if they make a mistake that savings will quickly go away when you have to pay to have returns amended, penalties, interest, etc. Look for a good CPA or EA, their fees will be worth the added assurance that they know what they are doing.

[Blake Scout]

An LLC will most likely be the route I go. Have an appointment sheduled with an accountant to talk it over more and help me fill out all the proper forms. This starting a business thing can be rather complicated.