Tax question

[WestTNguy]

Hey everyone, I am in the process of applying for the state sales and use tax exemption. I am filing as a sole proprietorship, but on the application it asks for an "entity name" then the entity contact.

If I am applying as a sole proprietor, would the entity be my name, or do I need to come up with a name for the farm?

Thanks in advance

 

[kenny thomas]

It's your name here. no farm name needed unless you are doing business and filing taxes in the farm name

 

[WestTNguy]

Will do. I appreciate the reply.

 

[WestTNguy]

Thank you for the reply.

I do plan to do business in the future. Would it benefit me now to go ahead and register a farm name with the state/county?

My main goal at this point is to utilize the tax benefits to get this operation started.

 

[kenny thomas]

If your in TN for now I would just get the tax number. It takes a couple weeks if I remember correctly.
As you need it in a farm name get it then.

 

[Brute 23]

Most likely it is not worth it at this point. You would be better off getting a tax person or lawyer to discuss your plans if you don't already have one.

 

[kenny thomas]

To my knowledge there is no registering unless you are Inc. or LLC. But check with your tax advisor.
Also remember many banks now will only let you deposit a check in the name on the account. If you sell in the farm name then the account must be the same. I know BB&T did that to a friend. He had to get the sale barn to issue him a new check in his name not the farm.

 

[WestTNguy]

I'll consider all of your comments. I will talk to my tax man and update. This will be useful information for others down the road.

The tax laws in this country are complex enough to cross your eyes.

 

[callmefence]

To my knowledge there is no registering unless you are Inc. or LLC. But check with your tax advisor.
Also remember many banks now will only let you deposit a check in the name on the account. If you sell in the farm name then the account must be the same. I know BB&T did that to a friend. He had to get the sale barn to issue him a new check in his name not the farm.

That's right.
If you use a business name you will need to file a DBA in that name. It's no big deal, but the bank won't take checks wrote to the business without one on file.

 

[farmerjan]

My son had to get a DBA added to his checking account. I have a separate account for the farm business and one for my personal.... they are linked so I can just deposit checks in the farm one then transfer that money to my personal account.

 

[WestTNguy]

My son had to get a DBA added to his checking account. I have a separate account for the farm business and one for my personal.... they are linked so I can just deposit checks in the farm one then transfer that money to my personal account.

Adding a DBA to an existing account sounds like a great option. I plan to expand, so streamlining this a year or two down the road would be helpful.

I went and talked to the tax man the other day, and it was frustrating. He looked at me like I should know this stuff, and it's just not anything I've ever dealt with. The tax game alone is enough to make your eyes cross.

 

[farmerjan]

If he can't/won't talk to you and answer your questions, dumb as they may seem, find another tax guy. It is their job to educate you on the things you need to know when you ask who what when where and how. That is why they have a "degree" in tax matters, and you do not.
Case in point. I am over 65 now getting medicare. Have a supplement policy. Went to the ins lady from my job, when I was transitioning to medicare and asked her opinion. I was losing my full time status so it all happened at a good time. I had been to no less than 3 seminars on medicare and the different plans, what "seniors are supposed to know" and was more confused than ever. She spent time with me, explained it all as well as can be, said that yes, they made it more complicated all the time.
After several scenarios, asked her point blank what her husband had because he had retired the year before and had had a knee replacement. What it paid, did and didn't cover.... She told me and I said, okay I want that because I am going to have an ankle and a knee replaced in the next couple of years.
This fall I kept hearing other ads about the new medicare advantage plans, all the little perks they cover and all. So I called her up and said, okay, I've been hearing all this stuff, what's the deal. Had a friend that switched over and all the little things she would be getting out of it at a lesser cost. She explained the differences, and that the lower cost plan, did offer up some "everyday" perks, that if anything about my health would change, and I needed more medical care, that down the road I would not be able to pass underwriting to get a supplemental policy like I have now.
I said, thank you. You are the expert, I just wanted someone who knew what the little inside things were to explain it to me. I said, It all sounds so good in the ads, but I figured there were things that weren't being said. If you think this is where I should be, then that's fine, that's what I will do.

So, when you go to an "expert", like a tax person, they don't have to go into minute detail, but you are paying them to look out for YOUR best interest. And they should explain what you need to know enough to get you in the right direction, the right position for what you are doing.

 

[WestTNguy]

If he can't/won't talk to you and answer your questions, dumb as they may seem, find another tax guy. It is their job to educate you on the things you need to know when you ask who what when where and how. That is why they have a "degree" in tax matters, and you do not.
Case in point. I am over 65 now getting medicare. Have a supplement policy. Went to the ins lady from my job, when I was transitioning to medicare and asked her opinion. I was losing my full time status so it all happened at a good time. I had been to no less than 3 seminars on medicare and the different plans, what "seniors are supposed to know" and was more confused than ever. She spent time with me, explained it all as well as can be, said that yes, they made it more complicated all the time.
After several scenarios, asked her point blank what her husband had because he had retired the year before and had had a knee replacement. What it paid, did and didn't cover.... She told me and I said, okay I want that because I am going to have an ankle and a knee replaced in the next couple of years.
This fall I kept hearing other ads about the new medicare advantage plans, all the little perks they cover and all. So I called her up and said, okay, I've been hearing all this stuff, what's the deal. Had a friend that switched over and all the little things she would be getting out of it at a lesser cost. She explained the differences, and that the lower cost plan, did offer up some "everyday" perks, that if anything about my health would change, and I needed more medical care, that down the road I would not be able to pass underwriting to get a supplemental policy like I have now.
I said, thank you. You are the expert, I just wanted someone who knew what the little inside things were to explain it to me. I said, It all sounds so good in the ads, but I figured there were things that weren't being said. If you think this is where I should be, then that's fine, that's what I will do.

So, when you go to an "expert", like a tax person, they don't have to go into minute detail, but you are paying them to look out for YOUR best interest. And they should explain what you need to know enough to get you in the right direction, the right position for what you are doing.

If it makes you feel any better, you're not the only one who struggles to keep up. I know recently a lot of changes went into effect. The hospital I work at and, my best friend who is a family physician, employ people who's sole job is to keep up with these changes. If they don't file right, they lose money. It's enough to make you pull your hair out.