Florida - Checking off the boxes, what have I missed??? (Other Business Owners, please!)

[U_Stormcrow]

Have you determined any insurance needs?

I formed an LLC specifically to protect my personal assets from claims against the business, which I will operate at as close to break even as possible - it will have substantially no assets to attach in any litigation. I'm drafting up the paperwork now to transfer my flock into the LLC's hands and the existing feed as part of my initial investment, but it will rent the property used and the rest of the equipment (hen houses, barn, etc) from me, and pay me "in kind" at market value for eggs and processed poultry. The cash side of the business will go to feed costs, primarily, and eventually to the purchase of additional equipment to be held by the LLC - another incubator, signage, a dedicated mini-refrigerator and a better three compartment sink and stand.

If sued, I will simply liquidate and dissolve the LLC in response - my time is worth more than the hassle. I do need, eventually, to alter my insurance on the property itself, but I already carry the maximum coverage anyone will write until I have a residence (as opposed to an RV) on the acreage.

Excellent question, btw.

 

[Krugerrand]

I formed an LLC specifically to protect my personal assets from claims against the business, which I will operate at as close to break even as possible - it will have substantially no assets to attach in any litigation. I'm drafting up the paperwork now to transfer my flock into the LLC's hands and the existing feed as part of my initial investment, but it will rent the property used and the rest of the equipment (hen houses, barn, etc) from me, and pay me "in kind" at market value for eggs and processed poultry. The cash side of the business will go to feed costs, primarily, and eventually to the purchase of additional equipment to be held by the LLC - another incubator, signage, a dedicated mini-refrigerator and a better three compartment sink and stand.

If sued, I will simply liquidate and dissolve the LLC in response - my time is worth more than the hassle. I do need, eventually, to alter my insurance on the property itself, but I already carry the maximum coverage anyone will write until I have a residence (as opposed to an RV) on the acreage.

Excellent question, btw.

Sounds like a good plan. I remember reading recently of people having trouble with homeowners insurance when they were selling from their property ... but it sounds like you won't run into that issue.

 

[U_Stormcrow]

Sounds like a good plan. I remember reading recently of people having trouble with homeowners insurance when they were selling from their property ... but it sounds like you won't run into that issue.

Yes, they do. and likely, I will. Requires either a separate policy or a rider for "cottage business" activities. Its a bridge I expect to cross eventually and am already looking into it. How the business actually performs in terms of revenue streams will be a significant consideration as well. Initially, I expect most sales to be shell eggs, most divestiture of profits and rent to be in the form of live cockerels, and only minimal hatching egg or live poultry sales (I am NOT going to process poultry for human consumption under the business) while I continue my breeding project.

I **hope** to eventually transition into sales of hatching eggs and a purpose bred dual use bird for my area - at which point the insurance needs should decrease, as the liability is so much less when human consumption isn't involved. At this point, however, nothing separates my hatchlings from the typical barnyard mutts, except a plan that may not produce the desired offspring down the road...

 

[U_Stormcrow]

and the FL Limited Poultry and Egg License has been applied for. Just waiting on a call from the Inspector and to pay the State for my license.

 

[tribalacres]

Awesome! I remember chatting a bit back with you about your progress. Almost a year in, I would suggest getting a part of any association that you may be inclined to have on your property. Getting a business license or "peddler" license - yeah it's a thing in bigger cities if you seek to go to markets or sell on the side of the road. Also, I would encourage you to get a bank account and you must have specific listed officers or it's a nightmare at the bank - ha ha. Congrats on all the major milestones!

 

[U_Stormcrow]

Awesome! I remember chatting a bit back with you about your progress. Almost a year in, I would suggest getting a part of any association that you may be inclined to have on your property. Getting a business license or "peddler" license - yeah it's a thing in bigger cities if you seek to go to markets or sell on the side of the road. Also, I would encourage you to get a bank account and you must have specific listed officers or it's a nightmare at the bank - ha ha. Congrats on all the major milestones!

The bank account is next, though I plan to do this as a cash business primarily, having an account so I can pay taxes electronically is a definite plus.

Currently struggling with Google to verify my Business. Figured I'd check in at BYC while I wait on them. The brand new account is "Suspended" without reason given, though I verified the Address via postcard earlier today.

 

[U_Stormcrow]

and the FL Limited Poultry and Egg License has been applied for. Just waiting on a call from the Inspector and to pay the State for my license.

...and is now Secured. Sig updated to reflect it. I'm legal now, licensed and certified with the state to sell poultry eggs for hatching or for human consumption. Birds too, live or processed.

The local representatives of the various State agencies were quite pleasant to work with, and while slower than I would like, the whole process was relatively easy.

 

[Brooks_]

...and is now Secured. Sig updated to reflect it. I'm legal now, licensed and certified with the state to sell poultry eggs for hatching or for human consumption. Birds too, live or processed.

The local representatives of the various State agencies were quite pleasant to work with, and while slower than I would like, the whole process was relatively easy.

 

[m1chelle1]

were going through the same process! Thanks for posting this, the only thing i need to do at this point is get that limited poultry license. We dont have a separate bank acct just yet, ive been tracking my reciepts so far, and it is a pain. Thinking ill need to rectify that soon, tho. A whole lot of spending on the farm, and not much profit the first year. Hard to look at those numbers!!

 

[U_Stormcrow]

were going through the same process! Thanks for posting this, the only thing i need to do at this point is get that limited poultry license. We dont have a separate bank acct just yet, ive been tracking my reciepts so far, and it is a pain. Thinking ill need to rectify that soon, tho. A whole lot of spending on the farm, and not much profit the first year. Hard to look at those numbers!!

Its a loss the first year - cost of establishing the business.

Because it runs in the red, I've not opened a seperate bank account, but I **am** maintaining a very careful ledger. You should also be aware that, even though you aren't likely to have taxable sales (in fact, I'm not sure how you could, under that license), you do have to send in your tax report each Quarter. If you are late, they will give you a "grace" (which I've already used due to a filing snafu on my part - but they make a real clear threat that they will charge a minimum penalty next time there's a late filing, even if your tax liability is zero. For a business already running in the red... that's hurtful.

/edit reminds me, I need to dig thru records and send another off, so it doesn't arrive late.