Starting Aquaculture busniess in Florida...What steps to take?

[WarDaddy]

I am starting a 400 - 500 gallon Marine Aqua-Culture business in my garage in Florida.

At this point all I have is a business plan (incomplete but working on it), a dream, and the beginnings of construction.

When do I apply for permits, licenses, DBA, tax id's etc. I will be lucky if I see my first sale by October.

At what point and in what order should I be working on the "legal" stuff?

[Ding2daDong]

I am not 100% sure about what you are asking.

But... word on the street is ORA is selling out there facilities/green houses in florida. I would do some research and look into that.

I hope that helps.

-Matt

[WarDaddy]

Lets see if I can reword this...

At what point in the setup process of the busniess should I take care of all the legal stuff. Certified Aquaculture, Business permit, DBA, etc.

Do I get my certificate first, then my DBA and finally business license?

Or do I do DBA, Business license and then the Aquaculture Certificate?

... I did talk to the Florida Department of Agriculture today. They said there is no need to do any of it until I am close to being able to sell something. The Aquaculture Certificate is good from June to June, so they advised I wait until after June to apply since I will not be in a position to sell anything until August, if I get real lucky.

So with that I am going to focus on building my system and getting my brood stock numbers up and healthy.

--- Now Ora, are they selling out of the business?

[Ixthys]

I believe you need to get your business license first, then your DBA license. I don't think the aquaculture license is tied to the business license or visa versa. In any case, the licenses can take 2-3 months to get, so plan appropriately.

[Philip Root]

--- Now Ora, are they selling out of the business?

explane more

[WarDaddy]

<a href=showthread.php?s=&postid=9319813#post9319813 target=_blank>Originally posted</a> by Ding2daDong
But... word on the street is ORA is selling out there facilities/green houses in florida. I would do some research and look into that.

-Matt

I am not sure.. .Mat said that, but I do not know what he is trying to say.

Are they renting space to others, or are they getting out?

[tangwang]

No. Harbor Branch merged with another company, and left ORA out the deal.. So ORA, as an entire company, is for sale...

[Philip Root]

how much ?

[flfirefighter13]

Im not sure about the aquaculture license part but you should be able to get help with the rest through your local branch of the SBA. a lot of forms and info can be found at http://www.sba.gov/fl/ Tax questions are best answered by an accountant, it is well worh the investment to talk to one and get the books set up right to begin with, much cheaper in the long run than bringing them a bag of reciepts and a confused look on your face. Some accountants will also help incorporate or file other papers depending on your business structure. some more info can be found at http://www.stateofflorida.com/portal/desktopdefault.aspx?tabid=8.

www.sunbiz.org also has a lot of stuff.

A few last thoughts, many vendors will require you to have a business license and a tax ID to buy wholesale so that may make it worth while to get that stuff asap before buying a lot of equipment. Also check with the city/county your in for what license you need, and if inspections need to be doen for home based businesses to be legal. Goverment takes time so the sooner the better. Hope that helps a bit.


<a href=showthread.php?s=&postid=9315990#post9315990 target=_blank>Originally posted</a> by WarDaddy
I am starting a 400 - 500 gallon Marine Aqua-Culture business in my garage in Florida.

At this point all I have is a business plan (incomplete but working on it), a dream, and the beginnings of construction.

When do I apply for permits, licenses, DBA, tax id's etc. I will be lucky if I see my first sale by October.

At what point and in what order should I be working on the "legal" stuff?

[raaden]

Bryan,

flfirefighter13 is pretty much on the money with his comments. IT WILL TAKE ALOT OF TIME to get anything done with the gov. It took me almost a year to get my way through everything. Inpsections and permits, if needed take months to finish as well as any modifications that may need to be done possibly forcing you to modify your setup.

As far as the order of things, the sba link should help alot with that, and it depends on how you are going to setup the business to what order things need to get done. As an example for my situation (DBA: sole proprietorship) I registered my DBA, then went through the business license stuff in the DBA name. After all of that is done you can get your Sales and Use Cert (which is what is needed to take advantage of wholesalers) and all of that is independent of anything you may need to do with the Dep of Ag.

Also I second the talking with an accountant familiar with livestock businesses or farming as there are many things I learned which will, hopefully, save me a ton of money in setting up the facility.

[WarDaddy]

OK, I understand the the business DBA thing.

What permits would I need to look into, and who do I talk to about them? What is the Sales and Use Cert?'

The Department of Ag is the easy part I guess, one form, $50 and an inspection, which should be simple, after my discussions with them.

[A.T.T.R]

sales and use is the easiest one to get.
its the one that allows you to collect sales tax

[WarDaddy]

Ahh... my plan is to sell wholesale.

I know I can not do retail from the house.

[raaden]

The best place to start for permitting is the Land Use Department or Zoning and Enforcement.

The sales and use Cert is issued from your Department of Revenue and is normally issued at the time when you register your DBA or submit the app for your business license.

[WarDaddy]

I talked to the county. They are confused and bouncing me around from place to place.

I think I found the right person, but I have to wait for her to call me back. So far they seem to think it is fine, as long as I am not having people come to the house to buy my products.

Looks like it will be a $30 fee foe a Business Tax Receipt, and then $50 to become certified Aquaculture.

Then I also have the $250 to get the DBA and such.

[Treeman]

Even if you do not sell retail. You will probably need the sales tax cert. The state wants to know what you bring in etc. Also, It helps you buy tax free to resell and most business' that you will deal with will accept you as a bonafide business with it.

[flfirefighter13]

Ditto treemans comments, you will need tax exempt paperwork, A lot of people will require it before they will sell to you. Remeber that forms must be filled even if no taxable sale was made in the quarter/half or year your fileing for. (Most accountants will recomend small business file quarterly but really depends on how your business is set up.) Also didnt see if you are planning on forming a corparation or a sole prop. But keep in mind the initial cost of incorp. may seem high but you generally save a good deal on not paying double social security tax on yourself, this is especially pertinant if you currently have a job that pays social security on you now and the business your starting is a side business. Bottom line I would recomend getting an accountant or business lawyer to help you get thins started, Ive done it in the past on my own and will NEVER try again without someone that knows all the loopholes and what needs to be done. Most accountants I have dealt with charge very small fees for helping setup cause in the end they hope to get a new client out of you and the more geared towards how they need stuff the easier their job is. The last small company i worked for spend 80 dollars a quarter for the accountant to file all taxes and keep the books straight, only cost was the initial 160 dollar visit and buying software to keep the books on (The used quickbooks which is expensive but there are others that arent bad). Hope that helps

[WarDaddy]

you guys are the best!!!!

Now to find an accountant to speak with!

Thanks so much for your advice!

[flfirefighter13]

Cant help ya there unless you want one just north of orlando.... ask around to local businesses, Im sure someone will recomend a really good one. Good luck with your venture!

[WarDaddy]

it is so hard, I am excited, and want to get water going so badly. I am going slow, or trying, but oh my!

I will start asking around for an accountant, my uncle is a CPA in California, but that will do me little good now.

[A.T.T.R]

taxes.. the one part of this whole thing that makes me hit my head on the wall!

and sadly the one accountant who would of helped me free died a year ago :(

but war. im kinda in the same place as you right now and am trying to do it all my self. apparently quick books and things like that are really helpfull

[WarDaddy]

I have an appointment to talk with a Guy on Saturday Morning.

It should be interesting.

[MLCorp]

let me see if I can help:

1) incorporate yes/no. if yes can file on line and pay online with he Secretary of State
2) DBA can file on line and pay online with he Secretary of State
3) File with State of Florida wildlife commission for wholesale and/or retail license
4) File with you county for a Business Occupation License
5) File with you city for a Business Occupation License
6) Open a checking account under your DBA
7) File with the state of Florida Department of Agriculture Division of Aquaculture
8) Florida Department of Revenue for a sales tax certificate
9) Then if you do Incorporate file with IRS for a Federal Identification Number
10) If incorporate file with IRS for chapter-s

[WarDaddy]

oh boy... looks like I gots me a lot of filing to do. There is probably a fee with each too, huh. :-/

[WarDaddy]

Question on this:

3) File with State of Florida wildlife commission for wholesale and/or retail license

Looking at the website, it looks like they are controlling FOOD, Fishing not Ornamental production. I searched their site for aquaculture and it sends me to the Agriculture Department Aquaculture division

[RedSonja]

<a href=showthread.php?s=&postid=9524505#post9524505 target=_blank>Originally posted</a> by WarDaddy
Question on this:

3) File with State of Florida wildlife commission for wholesale and/or retail license

Looking at the website, it looks like they are controlling FOOD, Fishing not Ornamental production. I searched their site for aquaculture and it sends me to the Agriculture Department Aquaculture division

From what raaden has said, I think it's the same way for NC. They heavily regulate food fish production but not at all (yet, knock on wood) ornamentals.

-Sonja

[raaden]

WarDaddy,

IIRC Fl is a bit different, they are regulating ornamental aquaculture. Treeman could probably give you more info but from what I remember even a guy who breeds clowns in the extra room need to be state certified for aqaculture. I believe someone said it is a $50 license and all they want to do is come take a look at your setup and you get approved.

[MLCorp]

Yes the Florida Wild Life Commission web site is not very helpful but it is there. You can call them also. There are incharge of issuing permits for collection and wholesale and retail of marine life.

[WarDaddy]

<a href=showthread.php?s=&postid=9539713#post9539713 target=_blank>Originally posted</a> by MLCorp
Yes the Florida Wild Life Commission web site is not very helpful but it is there. You can call them also. There are in charge of issuing permits for collection and wholesale and retail of marine life.

I am not collecting, nor will I be involved in the wholesale or retail of any that were collected (at least not the generations I have)

All my brood is second generation or better, 100% aquaculture, nothing from the sea.

With that do I need to pay to wholesale my aquacultured marine ornamentals?

[Treeman]

The wholesale license is to wholesale MO. Doesn't matter if they are collected or grown. As far as I know. Anybody that sells MO's should have the Div. of Aquaculture license also. You can raise and give them away but not sell them.

Call the Division of Aquaculture, they are very helpful.

[WarDaddy]

Thanks Treeman. I talked to Div of Aquaculture and they never mentioned this permit. I have a call into the Florida Fish and Wildlife Conservation Commission, Saltwater Division, to see what I need to do.

The app is not clear, it says the fee is $1000 to purchase wholesale from fishermen state wide. I want to sell wholesale to distributors or retail stores, state or country wide. I will wait for that call back.

[tangwang]

You have to have an Aquaculture permit if you are selling any products you have aquaculture, even if out of your garage ;) Just a racket if you ask me, but nonetheless a state requirement. You must apply for it, then someone from the DACS Aquaculture division will make a visit to the aquaculture facility, and give you a copy of the Best Management Practices handbook, and do an initial inspection. Then they will approve you for the permit. They are supposed to make bi-annual unannounced inspection visits as well. Hope this helps.

[WWC]

wardaddy was your budget for the 500 gallons on the garage?

[dragonforce]

I plan on starting up my own coral aquaculture thing in the future as well but I sure as hell am NOT going to tell the govt of my operations. This will be used mostly to fund my reef addiction. :P

[Blackwood]

I heard all you need to get started is a Salt Water retail License. Is that true? Also how about if it is only internet sales?

[WarDaddy]

I hope to get this thing off the ground for under $5000, originally I was shooting for $2500, but that is not feasible.

I am reporting to the government because I hope to sell wholesale to either a couple distributors or many retail stores. Selling to retail will make me more money, bt it is a lot more work and orders are not as steady, so both have their pros and cons. Either way I have to have my retail license, aquaculture permit, and various other permits and licenses (as I am sure you have read above). If you are just going to sell frags to other reefers, ebay like, nothing reported, go for it, but if you sell to anyone that resales it, trouble when they report where their corals came from.

[Blackwood]

How about a Web Based Business? Does anyone know what permits and licenses needed?

[WarDaddy]

It all depends on where you live... Selling on the web does not protect you from the regulations of the state, county and city in which you live.

Where do you live?

[Blackwood]

I live in Orlando.

[Blackwood]

I live in Orlando.

[WarDaddy]

Well I talked to the Florida Fish and Wildlife Conservation Commission and they are not concerned with my plans and have no requirements for me to register with them.

So it looks like all I have to worry about is all the normal business stuff and my Aquaculture permit.

*sigh* that is a good thing, that permit would have cost a small fortune!

[wrenchhead]

Are there any updates on this subject.Any progress made?Just wondering if it is working out.(I only trade frags for equipment to the local lfs,thats good for me)

[WarDaddy]

I need to form my business, and I am not ready to do that, so I am waiting on the rest.

From all the research I have done I need to do the normal business stuff, license, tax, wholesale, etc. and then get the state aquaculture group out to come and certify me. Should be fairly straight forward.

[Blackwood]

If your aquaculture facility is in one county and your corporation is registered in another county where do you apply for business permits your aquaculture facility or address where corporation is registered to?

[A.T.T.R]

what distributors are you gonna sell to?
selling to a distributor wouldent htat make your price drop ( or th end price of the coral to be extreamly high)

[Blackwood]

No Distributors maybe local stores and ebay/website

[dustin323]

<a href=showthread.php?s=&postid=9794920#post9794920 target=_blank>Originally posted</a> by Blackwood
If your aquaculture facility is in one county and your corporation is registered in another county where do you apply for business permits your aquaculture facility or address where corporation is registered to?

If the counties are in the same state I believe it should be the same. Forming a corporation is done through the state as well as your tax ID. If your corporation is filed in a different state, like Nevada, Delaware, etc for tax purposes. Then you have to have a registered agent in the state where the corporation is filed.

[ryan115]

<a href=showthread.php?s=&postid=9548408#post9548408 target=_blank>Originally posted</a> by WarDaddy
I hope to get this thing off the ground for under $5000, originally I was shooting for $2500, but that is not feasible.

I am reporting to the government because I hope to sell wholesale to either a couple distributors or many retail stores. Selling to retail will make me more money, bt it is a lot more work and orders are not as steady, so both have their pros and cons. Either way I have to have my retail license, aquaculture permit, and various other permits and licenses (as I am sure you have read above). If you are just going to sell frags to other reefers, ebay like, nothing reported, go for it, but if you sell to anyone that resales it, trouble when they report where their corals came from.

How would this be any different than when people come and bring a fish or a coral in for trade for credit at the LFS, or if they were getting out of the hobby and sold all of their equipment to the LFS? I can see if they were buying large masses of corals weekly from the "private supplier" but if they were only buying some from you every month or so as a trade for store credit, how would they have to report that?

[WarDaddy]

Life is interesting...all the lines are grey, blurred...

I believe that there are regulations that would help guide us answer this question, wich I am not sure of the correct answer too.

If you sell more than $600 of stuff in a year to a LFS they are required to 1099 you for those sales. That is the point where the federal and state governments are made aware of your business.

So I guess if you never sold more than $600 to any one business you may be able to fly undetected by the government radar. Of course, a LFS could report on a single sale to you as well.

Like I said I have no answer, but there are regulations out there that could expose a person.

What is the correct thing to do? Get licensed....

[chrismhaase]

check your PM

[Treeman]

War Daddy,

What is going on with the aquaculture set up?

[WarDaddy]

I have been real busy with everything else, so it is slow going. I have a couple RBTA, but I am still working on just keeping them happy at the moment. Working on design of the breeding tanks.