Laws About Shipping Chicks?

[Mac in Wisco]

Ok, I did some quick reading to clarify what I said and give it to you in the appropriate terms.

To start a business you do just that, do business. By default it is a sole propietorship, you and the business are the same and any profit, debt, liability goes in and out of your pocket. No licensing required. You can choose a different business structure such as a Limited Liability Company, which can seperate your personal finances from the business, but by default it is a sole propietorship. You just pay the appropriate taxes at the end of the year by filing a Schedule C with your 1040.

If you choose do business under another name you will file a DBA (Doing Business As) document with the state. This just tells the government who the business belongs to.

As far as regulations go, your flock will need to be NPIP certified. That is the National Poultry Improvement Program. It coordinates and standardizes the state poultry programs. Then you just need to follow the post office shipping regulations.

Hope this helps!

-Mac

 

[houndit]

Thank you very much everyone!!! This really helps a lot.
I do appreciate it!

 

[Mac in Wisco]

Let me clarify "no license required". Business license is a very broad term. You do not need a license just to start a business. Some cities or counties may require you to register a home business with them, but it's not necessarily permission to operate a business. For the most part "business licensing" applies to enterprises that are highly regulated and require licensing and certification. For example somebody hauling hazardous waste in interstate commerce probably needs a federal license or permit to do so. A real estate agent or a surveyor needs a license from the state. Food preparation typically requires certification from a city or county office. Dairies typically require state licensing and egg handlers require state certification. These are all examples of business licensing.

For selling chicks NPIP certification is required in most states and is required for shipping chicks to other states.

 

[crooked stripe]

Getting a business license was the best decision I ever made. Mine is for carpentry but it can be broadened out as much as needed. I went into a LLC because of all the law suites being filed now days. My small business tax person takes care of all my taxes and it is amazing how many deductions you can take. A percentage of all my utility bills have a deduction. My house maintenance can and is deducted from my taxes. Even my out buildings and my lawn equipment are deducted. I went from paying 500-1000 a year in taxes to getting back 500-1500 back every year. Everything you need to purchase is deducted some how. It costs me 200 a year to have my taxes done and that is also deducted. Good luck in your adventure. John
edited to add, the percentage of the deductions are based on what my needs are. All chicken feed is deducted +all the electric for my barn, heat and water. The more I use for my product the more the deduction.

 

[SewingDiva]

Quote:
This is good information. "LLC" means Limited Liability Corporation. It's been a while since I took corporate law, but I recall another benefit of an LLC, which Crooked Stripe mentions, is that it limits the assets that can be attached in a lawsuit.

But don't take my word for it because again it's been awhile since I've been into this. If you check the web site for the Secretary of State for Missouri you should be able to find out all the differences between an LLC and a Sole Proprietorship.

~Phyllis

 

[crooked stripe]

I had to get an attorney for the filing. I believe it costs around 1500 for the license. They take care of everything. With all the filings are done the attorney gives you a set of books with all the the state and federal filings and your license for hanging on the wall if you have a office-shop open to the public.. I must say my wife works for IEP lawyers (intellectual properties) and they did it for me for free. If you have to pay for their service the total expence is deducted from your first years taxes. In the end with the extra work my book keeper had to do it only costs 100 but well worth the investment. Your state secretary's office is where to start. They also have a ton of info for free and will provide it to you upon request. John

 

[CatawbaCoops]

Joel Salatin made a comment a few weeks ago at Polyface Farm in Swoope, VA that he felt there should be more hatcheries... especially those dealing in heritage breeds. His comment was that he bought out ALL the hatcheries that were dealing in a certain breed (which I cannot remember) and that as a chicken raiser, he wishes there were MORE places that he could purchase chickens.

"There's a big business opportunity there" I heard him mention to a group of people he was addressing.l

 

[houndit]

Thank you every one!!!! This really gives me ideas where to start from and encouragement. I really appreciate it.
Thank you all.

 

[poltroon]

Just to be clear: forming an LLC or other corporate-type business entity is different from having a business license from your local government. The LLC is optional, and whether or not it is right for you will depend very much upon the size of your operation and your state of residence.

If you are ever looking to purchase property with the intent that you may have a home business, it's worth looking up in advance the licensing fees and requirements. For example, the City of Los Angeles taxes on gross receipts - which can be a big problem if you're in a high cash flow, low margin business like horse boarding - while the nearby pocket of Burbank has an annual business license based on the number of employees, something like $25 per.

If you're doing chickens as a business it will be your obligation and right to keep track of your income and expenses, and to report both accurately to the IRS. I highly recommend getting a separate checking account and some software like QuickBooks to help you track everything.

 

[BayCityBabe]

As others have shared, an LLC is essential in our litiginous world.
I was able to file for an LLC for only $25, using forms posted on the internet by the State of Michigan. I had previously filed a different entity's LLC, utilizing the expensive brilliance of my attorney. What I got from my attorney - for the extra THOUSAND DOLLARS- was a corporate log (an attractive leatherbound notebook) in which I was to place my corporate meeting minutes. Save yourself the $$$$, download forms, file for yourself & make your "official minutes book" a $1 folder from Kmart!
Good luck. In this economy, being an entrepreneur is the only way to get ahead!