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Hi, My name is Christopher. I have been sugaring for 10 years with my friend Joe. We were wondering what are the problems that show up once you are legal. How do we start? Should we be a farm? an LLC? Do we get insurance, if so how much will that cost? Do we have to get inspected by someone?
Once you are legal you are seen as a revenue source. Stay low and don't turn the transponder on.Quote:
Originally Posted by delta757and767pilot
Christopher,
Problems don't start simply because you are "legal", the same risks exist with or without a legal structure. For example, if you are selling syrup today, you still have business risk, tax responsibilities, regulatory responsibilities, with or without a declared legal structure. Now if you are really asking what changes from being a hobby producer no sales, to a small business with sales, then it is largely the three areas above. All producers much register with the FDA, regardless of what state you are in. From there, state regulations set in regarding if and what you need to do beyond that. You can and probably should be a farm or an agribusiness, as that is what you really are. This is different than what you want you business legal structure to be (sole proprietor, partnership, LLC or S corp). All can be set up fairly easily. The benefits of an LLC or S corp (s corp is more than you probably need or want at this point) is the business is legally different than your personal assets and therefore, any financial or legal issues are for the most part blocked from affecting your personal assets. You may know all this already so I apologize if it is redundant. If you can find a local lawyer that has worked with other small businesses, they may be willing to sit with you for minimal cost and help you learn a lot more. Ask other small businesses that you know or trust in your area for references, most are very willing to help and it is how I found my lawyer and accountant. Good luck. Dana
Very good advise.Quote:
Originally Posted by Mark
Spud
you definitely want to go LLC or S corp. like dana said it divides your personal property from business in case some thing happens. I was a S corp with my electrical business I never had to pay many or any taxes unlike when I was a sole proprietor I got hammered.
Flat Why did you pay less as an S Corp than sole proprietorship
Every state is different you need to do a little research for CT. I had no idea where to start so I went to a lawyer. Cost me $500 and I set up with as an LLC. but they set everything all I had to do was sign the papers. Even if you need some help they usually do an hour consultation for new business and it might cost you $100 but its good peace of mind and will help you decide what to do. apparently NH is a little easier than most places. you can do it yourself as well. I would start with your town gov. find out whats involved and see if you need a business permitt. Again every place is different. In my Town if its Agriculture related no business permit needed. As long as a certain percentage of what your selling comes from your property. Once you have that then get insurance. thats second. If your a member of CT maple producers assoc. which I believe is new join that and ask them what you need to do. hope that helps.
Very interesting. I am also trying to begin this journey, keep the info and ideas coming. I'm in NH and so far things arent to bad my accountant has steared me in the llc direction. Now of to the town
Spoken like a true pilot! VFR no transponderQuote:
Originally Posted by Mark
Has anyone set up an LLC without a lawyer or accountant? It doesn't seem like there is much to it.