Farm Start Up Decisions for Taxes

Farm Start Up Decisions for Taxes
Presented by Lisa Jones, Program Coordinator, WVU Extension Service Small Farm Center
This video covers important start up decisions that farmers make, which impact taxes. It includes questions to ask as a new farm business owner with reference to an IRS chart, how to get a business registered, and recordkeeping decisions.
Here is a guide from the IRS for new businesses on questions to ask yourself as a new business owner, www.irs.gov/pu...
West Virginia Secretary of State New Business Registration, sos.wv.gov/bus...
Apply for an Employer Identification Number (EIN) Online, www.irs.gov/bu...
University of Maine Extension Farm Account Book, extension.umai...
West Virginia State Tax Office, SALES AND USE TAX FOR AGRICULTURAL PRODUCERS, tax.wv.gov/Doc...
West Virginia State Tax Department, tax.wv.gov
This is material is based upon work supported by USDA/NIFA under Award Number 2018-70027-28588. This event is sponsored by the Northeast Extension Risk Management Education Center.
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WVU Extension Service Small Farm Center does not provide professional tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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Country Cue 1 by Audionautix is licensed under a Creative Commons Attribution license (creativecommon...)
Artist: audionautix.com
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[@wvuextensionexperts]

What start-up decisions were critical for your farm?

[@erikbudrow1255]

We need more videos like this for every state!

[@williambutler9989]

Thank you. That was very helpful. NC farmer here. Be safe and well.

[@rpggamez1347]

I’m a only 24 and I’m starting a farm business, this video is very helpful!! I’ll be watching more of your content !

[@wvuextensionexperts]

Happy to hear it is helpful!

[@rpggamez1347]

Great video !! And great information!!

[@wvuextensionexperts]

Glad you liked it!

[@docrw]

good video

[@debsreemandal1923]

Hello, I got the following message after filing my small business:. " In order to register a business trust, we need one original copy of the declaration, articles or agreement of trust creating the Business Trust. Please reply to this email with that agreement and I will approve your filing." How do I make the paper? What is the difference between Sole proprietorships and Business trust?

[@sheepfarmer7548]

I filed a scheduled F last year and will again this year but I never opened an entity. I am planing on expanding but do I really need an entity? I will be leasing a farm

[@biosyncfarm]

Call your county's extension agency

[@wvuextensionexperts]

By registering as a business and getting set up with your state tax department you will be able to save money through agricultural sales tax exemptions. One of the perks of being a registered farm business is saving this cash up front, which can be important especially for small farms. If you were to spend $10,000 on a fence, in West Virginia that can be up to $700 saved in sales tax, depending on where you live.

[@caseyswann1389]

I started a C Corp a few years ago. Is it a good idea to let that corporation own the farm? I purchased the property personally and live there.

[@wvuextensionexperts]

That is an excellent legal question, which you should discuss with an attorney. Based on your wishes for your farm business, you should discuss how you would want to separate your personal assets from your business assets, then make sure you have appropriate signed documentation in place.

[@brianleonard6885]

Nice job