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New business renting out our landscaped grounds for events/weddings. Need help understanding taxes.

by cindy1120, Window Shopper

  • Created: February 24, 2013, 4:28 pm
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2 comments
My husband and I purchased our home and property because we fell in love with it. We actually held our wedding here last year and many who attended suggested we rent out our grounds for events. We are both in the medical field professionally but both love "play" in the yard (our property is about 18 acres of lakefront property, roughly 3 acres is landscaped and well manicured). We try to take a "walk about" every evening and survey new blooms, plantings, fruit, what weeds need to disappear, etc. On these walks we have often said what a shame that we can't share this and that we are the only ones who get to enjoy it. Well, we now have a website, have attended several bridal shows and are getting alot of interest and have booked two weddings thus far this summer. Do I have to get any sort of business license to be considered a business and deduct business expenses? Am I self-employed, I don't really pay myself, it just goes into our personal account? I don't have employees and hope not to. An advice would be appreciated.
Tags: Discuss Popular Topics, Self Employed & Home Based Business
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BizResearcher | Window Shopper | 2/26/2013 - 12:21 pm

First and foremost, do you have a conditional use permit from your local
planning and zoning to have events on your property? If you don't and someone
complains about noise, parking or any other thing, you can be shut down
immediately. Once you obtain the permit, it will detail the hours you can
have events, how many cars can park on the property, the type and amount of
liability insurance you need, and much more. When water is involved, the
requirements increase immensely.

Yes, you are a business. Therefore, you need to register your business name
and entity type with your state or county agency that handles such matters.
You need a separate business bank account into which you deposit income and
pay expenses (landscaping, etc.). A counselor at a small business development
center or a womens business center and help you comply with the necessary
permits and be certain you contact all the necessary agencies. If your state
taxes services, you will need a sales tax permit and you may also need a
business permit from your city or county. The liability can be huge when you
deal with the public on a regular basis, so be sure to do all your homework.

JGabriel | Community Moderator | 2/26/2013 - 12:09 pm

Hi, check out the Business Licenses & Permits tool to determine the licenses & permits you need. The following page also provides tax information on those who are self-employed. SBA has resource partners like SCORE, Women’s Business Centers and Small Business Development Centers located across the country that provide free business counseling to individuals looking to start or expand a small business. Visit our local assistance guide to find your local SBA resource partners by entering your zip code.