Starting LLC Biz that is Farm-Production Based

[pjschut84]

Hello! I'm just getting started going through the process of establishing a formal LLC business on my property that will be producing flowers as a flower farm. I'm very new to this process of business management. Here are a sampling of my questions:

* How long is my business operational before I start filing quarterly taxes?

* How do I account for loose flowers that are harvested, but not sold? 

* How do I account for bouquet-assembled flowers that are not sold? (Labor expense involved in addition to flowers)

* Can I account for expenses before the LLC is officially operational/established?

* I've made investments in advance of starting this business, for example - I have a greenhouse I've built for the purpose of this business, and I have a barn that I've been renovating that I'll be using for this business as well. Can I account for the costs of my up-front investments as part of my taxes? 

I appreciate the assistance!

[JANETB211]

Hello @pjschut84!

Congratulations the new business venture…sounds like a beautiful one! I am assuming you’re a single member LLC, is that true?

Quarterly estimated taxes are a tool to help you avoid owing when you file.  Therefore, when the business begins to make a profit, it would be good to start filing your quarterly estimated taxes.  If you do have employees already, of course, there will be requirements for payroll filings immediately.  You can use this to estimate how your taxes are looking year to date!  You will need to estimate income from all sources to be accurate as possible.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

When a business has items that are not sold, there is not any addition to income for those items.  However, they are still deducting costs and labor associated with those unsold items.  This will account for the loss associated with the unsold flowers.

This is a great resource on start-up costs:  https://turbotax.intuit.com/tax-tips/small-business-taxes/startup-business-tax-tips/L7SOyYMzr

While I realize there are many questions when you begin a new business, I hope this information gets you started!

JanetB211