Starting new Business

[M&H]

What is the name of your state (only U.S. law)? GA

I would like to breed and sell my reptiles online and locally. I would love to be considered a "hobby" however I would also like to be able to do Birthday parties. That would involve bringing my reptiles to someone's home, or party location, and teaching them about the reptiles. Similar to how someone would do pony rides for parties. Everything would be paid for out of my pocket and any money I would make would go back into the reptiles. I wouldn't be making a considerable amount or anything really since I would use the money to buy more reptiles or feed the ones I own. Would I need a tax ID number? Would I need some sort of insurance? Could I do business as a hobby? Thanks for any advice.

 

[Ohiogal]

What is the name of your state (only U.S. law)? GA

I would like to breed and sell my reptiles online and locally. I would love to be considered a "hobby" however I would also like to be able to do Birthday parties. That would involve bringing my reptiles to someone's home, or party location, and teaching them about the reptiles. Similar to how someone would do pony rides for parties. Everything would be paid for out of my pocket and any money I would make would go back into the reptiles. I wouldn't be making a considerable amount or anything really since I would use the money to buy more reptiles or feed the ones I own. Would I need a tax ID number? Would I need some sort of insurance? Could I do business as a hobby? Thanks for any advice.

Do reptiles bite? Can they cause sickness or illness in people? Can they cause harm? That is the answer for insurance. If you will be earning money, this is a business and not precisely a "hobby". Hobbies can be businesses. Businesses can be hobbies. You cannot avoid claiming any funds as income (after all deductions). Your Tax ID number would be your Social Security number unless you wanted to get a Tax ID number for the "business".

 

[LdiJ]

Do reptiles bite? Can they cause sickness or illness in people? Can they cause harm? That is the answer for insurance. If you will be earning money, this is a business and not precisely a "hobby". Hobbies can be businesses. Businesses can be hobbies. You cannot avoid claiming any funds as income (after all deductions). Your Tax ID number would be your Social Security number unless you wanted to get a Tax ID number for the "business".

Slight clarification...for tax purposes you are either a business or a hobby. If a business, then you can deduct all expenses even if that puts you into a loss position. If a hobby, you can only deduct expenses to the extent of your income. If you intend to make any money at all doing this you WANT to start out as a business...and that absolutely means getting the proper liability insurance. However, the IRS could later decide that you are a hobby if you never make any profit.