Who has an LLC or S Corp for their Mini Farm?

[OakLeafMiniatures]

I'm looking into incorporating my ranch as a business but I'm not sure if it's worth the $800 minimum franchise tax in California. I'd love to hear some of the opinions out there on which is better for a horse business.

Our main business would be breeding and selling horses. Do I even have to register for that? I'm also looking into doing birthday parties occasionally. Does anyone have recommendations on business plans or insurance for that? Do I have to have a business to get liability insurance for the horses?

Sorry for the load of questions! I'm excited to see what the community has to say.

 

[Cayuse]

I do not have a business so I can't be helpful with that part of your question, but I do have liability on all three of my horses through Blue Bridle Insurance. So you don't need to have a business to purchase liability

insurance. I would guess if you DID have a business such as pony rides or lessons the liability insurance would be more costly or a different type of liability policy. I say that based on the questions they asked when I applied, they were specific in wanting to know if the horses were used in lesson programs or in anyway commercially. My insurance is $125 a year. But like I said, they are not used for business or public purposes.

Hope that helps a little bit.

 

[Miniv]

We registered our DBA with the state....In Oregon you pay by the county you plan to practice in. Our bank provided the form. We also have Farm Insurance attached to our house insurance which covers liability for the horses. Once you have people coming on the property to see the horses or are taking horses off to do the birthday parties, you do need that extra coverage.

IRS doesn't recognize you as a business to take deductions unless you 1. File a DBA (which proves a business name) 2. Have insurance. 3. Have a business bank account.

4. Have business cards with your business name and info on it. (All of it is deductible.)

 

[Miniv]

PS: Forgot to add that we've filed our taxes as a Simple Partnership.....Husband and Wife.....Much simpler.

 

[OakLeafMiniatures]

Thanks! All this helps. I'll have to look into Blue Bridle and if they offer insurance for pony ride type situations.