biz license for seed selling ?
- Thread starter ajijoe
- Start date
At the prices you sell the seed if it is required where you live I would claim a non profit as you can not be making a fortune. Also talk with a business attorney on how you would need to word your fees to keep it a non profit. That is unless you want to make it a for profit business. Also if you do the pods and sauce thing keep them separate from the seed side so it can remain a non profit and a possible right off on your other business ventures.
I would highly suggest you seek legal advice. Do not form a non-profit if you intend to make a profit, even 1c. A 501c business entity is not for commercial purposes.
i don't believe non-profit status is going to be applicable to your situation, even if you are not making a profit.
it's all going to differ from state to state and county to county... in general each level of the government (local, state. federal) is going to want their cut...
it's likely that your county and/or state have some sort of template online for setting up a business entity. that is the case here in virginia at least.
in some cases setting up a business entity will be as much for your own personal protection from liability as it is for claiming your income correctly.
it's all going to differ from state to state and county to county... in general each level of the government (local, state. federal) is going to want their cut...
it's likely that your county and/or state have some sort of template online for setting up a business entity. that is the case here in virginia at least.
in some cases setting up a business entity will be as much for your own personal protection from liability as it is for claiming your income correctly.
You may not need a license (check with PA), and you do not need to form an entity. You can claim profit and loss on your Schedule C of your personal taxes. If you are looking for protection of your assets you may want to look into LLC and S-Corp.
Also there is a form SE for self-employment. Really you need to talk to a tax pro.
Also there is a form SE for self-employment. Really you need to talk to a tax pro.
Not really. You just need to check with your state to see if you need a license, and figure out your best situation, whether it be self-proprietorship (and you file with your personal taxes) or an LLC for limited liability.
Joe,
This might be of interest to you. Governor Rendell legalized the Seed Act in 2004. Basically, in order to sell seed in Pennsylvania you have to pay a nominal fee to the state ($25.00) before January 1st of the year you're planning to sell. They define a distributor as "the person whose name appears on the label of the seed." I'm not sure if you could avoid the licensing fee if you don't put your name on the label of the seed, but as the fee is so small, it doesn't seem like its worth trying to find a loophole. They set forth some labeling requirements, but it doesn't look like anything too stringent. Hope that helps!
Matt
Pa Seed Act of 2004
This might be of interest to you. Governor Rendell legalized the Seed Act in 2004. Basically, in order to sell seed in Pennsylvania you have to pay a nominal fee to the state ($25.00) before January 1st of the year you're planning to sell. They define a distributor as "the person whose name appears on the label of the seed." I'm not sure if you could avoid the licensing fee if you don't put your name on the label of the seed, but as the fee is so small, it doesn't seem like its worth trying to find a loophole. They set forth some labeling requirements, but it doesn't look like anything too stringent. Hope that helps!
Matt
Pa Seed Act of 2004
Yes for sure you can be a non profit in the seed business as I have chatted with several operating under this from the seed savers exchange in the past. It is not to say the gov may not change the laws as to which types of businesses can apply for the status but i have not seen it done yet. My sister does a non profit on the side raising farm products from her farm and also has a general contractor business license. Like I said you may have to change some wording on the price like calling it a donation or shipping fee per packet. Talk with a business attorney on it as each state may have different rules but the fed ones will be the same over the whole USA.