small farm//business help

I like the comparison at the end...in reality though, "Sarah" would be too busy keeping journals and records to actually produce anything on her farm.

I've posted the link before here and can't find it now but in Ohio you can sell all the annuals and herbs you want without having a license. If you sell over $200 in perennials, then you do. (Yes, some herbs are perennials but they are excluded it seems.) BTW, I shared the info with Danaus29; she might have the link.

Don't get me wrong a plan is necessary to any successful business, but the IRS isn't going to be interested in your plan only your P&L sheets.

The extension agency and score are outstanding sources for information, a good accountant with experience in your chosen business is also a good source of ideas that have worked, clubs, prefessional organizations are also excellent sources of help and information.

You also mentioned doing value added sales with cheese but felt deterred by start up costs. Have you talked to any other cheese producers in your area about the possibility of renting their facilities for production. I know of more than a few people who have used restaurant kitchens in off hours to process foods or make baked goods.

The Ohio extension service might be able to tell you for free.

Here in Kansas the listing for the extension service is found under the colleges.

the trouble with the cheese wasn't on the kitchen end. the trouble was the "enclosed milking parlor with water, electricity, and impermeable interior surfaces and area for milk processing closed off from the milking area" that was not allowed to be attached to my house. I can sell "pet milk" to local people with show dogs and orphaned kids and lambs for $2 a quart. There wasn't enough value added.

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http://rootsandwingsdairygoats.webs.com

Possibly on the Federal level, just file as a Sole proprietor "DBA" ...doing business as and use your SS number if you are planning to stay small, otherwise, yes, you should pay for an hour of a CPA or tax attorney's time to decide what is best for you.

You do anything else you have to apply for Federal for an EIN, or Employer Indentification Number. You can do this online. http://www.irs.gov/Businesses/Small-...r-(EIN)-Online

Or by mail. http://www.irs.gov/pub/irs-pdf/fss4.pdf

Then once you have your EIN, in the city or county you reside in, go to city hall and purchase a business license. You MAY have to have a dedicated business bank account first, depending on the localities rules. The bank account can be opened with $100 and your EIN and DBA info. Then business license probably won't be more than $50, again, depending on your local.

Here is info on Ohio's tax ID requirements. http://www.tax-id-number.info/tax_id_number/ohio.htm

If you plan to pay your a paycheck, in addition to state and fedral withholding, you will also have to pay unemployment insurance. Here is info about that. https://unemployment.ohio.gov/EmployerChoice.html

Last but not least. Insurance. You will have to have a umbrella liabilty, possibly workers comp, and maybe an asset type policy. Again, this depends on your state requirements. You can go talk to your personal agent, just to see what's what. And you can also shop around your requirements with a broker, which will probably be cheaper. This will be your biggest expense up front by a few to several thousand dollars.

Health insurance requirements are now up in the air, but don't ignore this...it's coming.

Hope I have helped, I'm sure if I forgot something, but someone will chime in. Keep great records and be organized. Take things step by step and it'll be fine, we've been self employed since 1996.

That price seems very low for "pet milk".

I thought $8 a gallon sounded pretty good. If you can't make money selling it at that price you need to re-look at things.

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I can't believe I deleted it!

I've seen it higher. $8 would be my limit and really should allow a decent profit.

it does allow a decent profit. and therefor I would rather expand my market through word of mouth in dog breeding/baby animal raising circles than invest in cheesemaking - too much investment and work for too little added value. but demand has not reached supply yet.

One of my customers got her own goat, raised it on my milk, and is now a potential breeding customer - product diversification. :-)

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http://rootsandwingsdairygoats.webs.com

thank you everyone for the links btw. I am checking them and they are helpful. It looks like this may be less complicated than I had feared.

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http://rootsandwingsdairygoats.webs.com

The taxes are pretty easy to give you a rundown, but I think your question is more about the regulations for selling processed foods on a homesteader level.

Your state and your county will have 1000 regulations, some apply, some don't, and good luck figuring it out.

I think your local extension office would be a good low-key starting point, they tend to offer help without the punishment other government offices might.

Your local county inspectors would be the source, but you do open yourself up for a visit for what you currently are doing.

Paul

The taxes are pretty easy to give you a rundown, but I think your question is more about the regulations for selling processed foods on a homesteader level.

Your state and your county will have 1000 regulations, some apply, some don't, and good luck figuring it out.

I think your local extension office would be a good low-key starting point, they tend to offer help without the punishment other government offices might.

Your local county inspectors would be the source, but you do open yourself up for a visit for what you currently are doing.

Paul