Jack Chen ⋅ Kerhonkson, NY Pronetik ⋅ 18 years experience

Hi Robert:

I'm a little late to this conversation but in case it's still useful, here are a few suggestions. It costs money to set up a LLC, so not sure if you want to make that investment. But if you do, then you can open up a bank account for managing all your business expenses. That's the cleanest way to write off your business expenses. Also get an accounting software program like QuickBooks to track your expenses. If you run your expenses out of your personal bank accounts, then be sure to keep a very good record of everything and speak to your accountant.

For liability reasons you will want to set up a separate legal entity, but again that depends on when you should make that investment. No need to do so until you're ready. Your local SBA chapter will probably be willing to help serve as a resource.

Transporting bees within California requires a permit: https://www.cdfa.ca.gov/plant/pollinators/

Some counties require registration: http://www.sandiegocounty.gov/awm/bees.html

Operating an apiary means you could qualify for federal agricultural programs especially those for veterans: https://newfarmers.usda.gov/veterans

Good luck!

Rashid Hill, MPM ⋅ San Diego, CA United States Navy ⋅ 33 years experience

Hello Robert,
If you are starting a business and are looking at the benefits like tax write offs that's good. Not sure why that's primary on your long list of things to do to get your business going but yes, as a consultant in California I have been able to file my business expenses on my tax return. I did make sure to keep all receipts of what I considered business expenses including health insurance and medical. This is from experience but you should contact a tax professional for any questions related to your taxes.

Thanks,
RHill

David Adler ⋅ Deerfield, IL Adler Law Group ⋅ 20 years experience

Hi Robert. Good luck on your new venture! There's some good advice here. Some things to think about: The principle reason businesses use business entities (corporations [S & C], LLCs, LLPs, etc.] is that they protect an owner's assets (house, car, savings). They also offer structure for diversifying management & ownership, but those are not a issues for a 1 owner business. I recommend using a business entity. You may need a license. Check with the City, county and state for rules/forms. Many are available online.

NANCY MOREHOUSE ⋅ Lake Forest, IL AON ⋅ 30 years experience

you can start right away as a sole proprietor and file your expenses on your taxes as a sole prop. That being said, once you get up and going you will want to possibly incorporate but don't waste the money at this point until you are profitable and know that the business will sustain itself.
One thing you need for sure is insurance - contact a local insurance rep and see what kinds of coverage you need - liability most likely but consult them for the details

I have run several businesses as a sole proprietor and had success -- you will want to incorporate / LLC to limit your liability in case of default, bad business, and protect you personally in case of suit -

Good Luck -- sounds like a great adventure !

John Green ⋅ Cary, NC Information Technology ⋅ 40 years experience

Here are the steps :

1. Write business plan.
2. Vet business plan.
3. Contract with a Process Receiver to receive legal notifications. (Registered Agent)
4. Write Articles of Incorporation.
5. File Articles of Incorporation with Secretary of State.
6. Obtain State Tax Id.
7. Obtain Federal Tax Id.
8. Produce quarterly financial reports.
9. Pay quarterly taxes due.

Only after you have completed all nine steps above can you legally deduct expenses. Don't bother doing any of the later 7 steps (3 to 9) until you have a well written, fully vetted plan. That would be pointless.

Robert Norton ⋅ Jamul, CA U.S. Navy, Petty Officer Second Class ⋅ 14 years served

Im working on that, but I was also researching what I need to do to be able to claim expenses for taxes.

John Green ⋅ Cary, NC Information Technology ⋅ 40 years experience

The very first step before you do anything else is to write a comprehensive, fully vetted business plan.

https://www.score.org/business-plan-resources