I would not get a business license, would have no insurance and deal only with private persons.
What's wrong with being liable? It's honest and fair and ethical. Insurance is gambling.
Licenses are unnecessary for two private individuals dealing with one another. It's a constitutional right.
Of course, if you want to sell to the public, at farmers markets, to distributors, etc... then you should do exactly as TheLight advises.
It's not for me, though. I like people.
Insurance is gambling.
I've owned many parcels of land and have run different types of businesses. I would never again incorporate, LLC, S corp, C corp etc.... if you're not out to legally protect your assets (and most lawyers can crack right through any corporate veil) and you're not going to do something illegal... then why bother with accountants/lawyers/ paperwork/fees, etc.?? taxes?
Most books espouse some transfer shinanigans to protect and hide assets... not worth it, if you ask me. you could probably make more money writing a book on how not to do it.
If you want to protect land, I would put it into a trust or conservancy.
Finding land is easy, finding good land is hard.
"All it takes is one lawsuit..." for me to walk into court and show that I can read, write and speak English.
I'm not going to address other items, but this talk of lawsuits...
ANYONE can sue anyone at any time for any reason.
Anyone can sue ANYONE at any time for any reason.
Anyone can sue anyone at ANY time for any reason.
Anyone can sue anyone at any time for ANY reason.
It all comes down to being able to defend yourself.
Insurance, LLC status, or whatever trick one succumbs to... it all ends up being a question of liability.... and by that I mean "Did I do something wrong to someone else?" It's basic playground rules. When I don't say sorry cause I threw sand on the other kid's head, he runs and tells the teacher. Teacher comes to me and says "Did you throw sand?" And I say... talk to my insurance company and my lawyer...
My point of view.
John Polk wrote:To operate a farm as a business for IRS purposes, you will eventually need t show a profit. I have been told that 3 consecutive years showing a loss is enough for 'them' to cut you off.
A family of 4 can turn a fairly sizable profit before the income becomes taxable. Food, shelter, and much more are free, so how much do you want to earn? Do the math, and figure at what point Uncle Sugar starts dipping into your pockets.
Get a good accountant. An accountant that specializes in farms, not a city/corporate accountant. A good one can save you a lot more than what he charges.
chefconnor McCoy wrote:I mean starting an LLC or other type of corporation, for tax and liability purposes, and running your garden as though it were a business even though it might not be a profitable operation anytime soon.
John Wheeler wrote:
As to the question of incorporation, the rough rule of thumb I've heard is that it costs about $600 a year minimum to do the proper paperwork for corporations, and you need roughly $40,000 in profit for incorporating to be worthwhile. Please note, those are very rough numbers and could very greatly depending on your locale.