The Journey Of Starting a Tarantula Business

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Hello, everyone.

It's Liquifin of the Arachnoboards or Laxow as everyone knows me on Youtube.

I'm currently on the journey of starting a small LLC business for myself. I don't plan to make this full-time as that is just not really realistic. But even still, I want to document and record this journey. So that way, in the future, if anyone wants to start a business and has no clue. They can just read this post and maybe get a perspective or idea if they're looking into starting a business. So feel free to recommend this post to everyone or anyone in the future wanting to sell tarantulas. My DISCLAIMER is that your state, country, and government system will be vary overall from the process and everything. This is just my story and process so far:

Currently, my business is registered and official, but I cannot buy or sell anything until I can get my Tax and Revenue Documents and some registrations done as well. Which will be on October 1st supposedly from what I was told.

This journey so far has been confusing and I'm learning as I go. One thing I can say for sure is that I have no clue what almost all of these business terms or taxes are. To be fair, even most adults will have no clue what some of these things are. I'm just an ordinary person like everyone else in this big world. And although some people do regard me well on this forums or on Youtube for my tarantula knowledge and insight, this is all foreign things to me when it comes to starting a business.

People say registering as a business was hard, but apparently, that is the easiest part. There are many businesses today that specifically helps you and basically does the majority of the registering for you to where you don't have to do anything such as registering and receiving Business EID's, BOI's, or Confirmation documents. They can definitely help you with that part, just like with me. However, the next part was difficult in-terms of acquiring permits/licenses.

In terms of proper permits/licenses to sell animals. You have to contact your States wildlife service and local area in terms of what those required permits/licenses are. The problem was that I made almost 50 calls just to find out that I need just one permit which wasn't that big of a deal. Then I had to apply for the required permit and/or license which requires the company name (*my LLC) and what/how many specimens you are acquiring. Then I had to wait days for it to be reviewed and approved to where I can then legally purchase my permit that I needed and applied for. The only problem is that I have no clue how to update it if more reptiles or animals are acquired to my permit, but I'll figure it out. But contacting my local city where I am located was and still is very difficult. Apparently, you have to contact your city or area to tell them that you're a business selling animals. Then they'll supposedly tell you what are the permits or regulations and also what kind of taxes and also how much taxes you'll pay for your business. As of the first post on this thread, my city has yet to receive my calls apparently, I left three messages and I'm still waiting. But I heard they're quite lenient, but I'm still waiting for them to take up my calls and questions.

In terms of taxes and documents, I have zero clue what they are and how they work. Whenever you buy/sell wholesale or anything (assets, inventory, animals, etc.), it needs to taxed properly. I have yet to buy anything under my business name, but understanding what files, numbers, or anything for that matter is just too much for me to comprehend and understand. So I decided to just look for a business accountant as of now. I'm hoping I can find someone local where I am. And if I do, I hope they can help with that. I'll update if I do get an accountant in October. There is a lot of taxes here in the USA and apparently there is more than just one kind of tax. You have to consider state taxes, local/county taxes, and others. So whatever you sell, just know that a portion of it will be going to your taxes and government. I guess this probably the reason why tarantulas in the USA are expensive. Which is probably to curve and break even in net-revenue due to taxes placed upon selling anything. I don't know the exact math because states and areas will vary, but I'd say 15%-35% of what you earn will go to taxes. So I guess don't try to make selling tarantulas a full-time job or income unless your wealthy or are truly successful. I decided that even though tarantulas will be a source of my business, I also want to reach out to frogs as well for my small business.

I also need to create a business bank account soon as well. It will for sure help with separating my personal assets and money from my business assets and money. I heard it isn't hard to make one, so I'll see how that goes.

This is my journey so far, and I will update it in the future. I'm just like everyone else when starting up a business: confused, scared, and learning as I'm going along. But it also feels right for some reason. I'll figure it out and update this forum over time, including: errors, mistakes, and successes.
 

Ultum4Spiderz

ArachnoGod
Arachnosupporter
Joined
Oct 13, 2011
Messages
5,969
Hello, everyone.

It's Liquifin of the Arachnoboards or Laxow as everyone knows me on Youtube.

I'm currently on the journey of starting a small LLC business for myself. I don't plan to make this full-time as that is just not really realistic. But even still, I want to document and record this journey. So that way, in the future, if anyone wants to start a business and has no clue. They can just read this post and maybe get a perspective or idea if they're looking into starting a business. So feel free to recommend this post to everyone or anyone in the future wanting to sell tarantulas. My DISCLAIMER is that your state, country, and government system will be vary overall from the process and everything. This is just my story and process so far:

Currently, my business is registered and official, but I cannot buy or sell anything until I can get my Tax and Revenue Documents and some registrations done as well. Which will be on October 1st supposedly from what I was told.

This journey so far has been confusing and I'm learning as I go. One thing I can say for sure is that I have no clue what almost all of these business terms or taxes are. To be fair, even most adults will have no clue what some of these things are. I'm just an ordinary person like everyone else in this big world. And although some people do regard me well on this forums or on Youtube for my tarantula knowledge and insight, this is all foreign things to me when it comes to starting a business.

People say registering as a business was hard, but apparently, that is the easiest part. There are many businesses today that specifically helps you and basically does the majority of the registering for you to where you don't have to do anything such as registering and receiving Business EID's, BOI's, or Confirmation documents. They can definitely help you with that part, just like with me. However, the next part was difficult in-terms of acquiring permits/licenses.

In terms of proper permits/licenses to sell animals. You have to contact your States wildlife service and local area in terms of what those required permits/licenses are. The problem was that I made almost 50 calls just to find out that I need just one permit which wasn't that big of a deal. Then I had to apply for the required permit and/or license which requires the company name (*my LLC) and what/how many specimens you are acquiring. Then I had to wait days for it to be reviewed and approved to where I can then legally purchase my permit that I needed and applied for. The only problem is that I have no clue how to update it if more reptiles or animals are acquired to my permit, but I'll figure it out. But contacting my local city where I am located was and still is very difficult. Apparently, you have to contact your city or area to tell them that you're a business selling animals. Then they'll supposedly tell you what are the permits or regulations and also what kind of taxes and also how much taxes you'll pay for your business. As of the first post on this thread, my city has yet to receive my calls apparently, I left three messages and I'm still waiting. But I heard they're quite lenient, but I'm still waiting for them to take up my calls and questions.

In terms of taxes and documents, I have zero clue what they are and how they work. Whenever you buy/sell wholesale or anything (assets, inventory, animals, etc.), it needs to taxed properly. I have yet to buy anything under my business name, but understanding what files, numbers, or anything for that matter is just too much for me to comprehend and understand. So I decided to just look for a business accountant as of now. I'm hoping I can find someone local where I am. And if I do, I hope they can help with that. I'll update if I do get an accountant in October. There is a lot of taxes here in the USA and apparently there is more than just one kind of tax. You have to consider state taxes, local/county taxes, and others. So whatever you sell, just know that a portion of it will be going to your taxes and government. I guess this probably the reason why tarantulas in the USA are expensive. Which is probably to curve and break even in net-revenue due to taxes placed upon selling anything. I don't know the exact math because states and areas will vary, but I'd say 15%-35% of what you earn will go to taxes. So I guess don't try to make selling tarantulas a full-time job or income unless your wealthy or are truly successful. I decided that even though tarantulas will be a source of my business, I also want to reach out to frogs as well for my small business.

I also need to create a business bank account soon as well. It will for sure help with separating my personal assets and money from my business assets and money. I heard it isn't hard to make one, so I'll see how that goes.

This is my journey so far, and I will update it in the future. I'm just like everyone else when starting up a business: confused, scared, and learning as I'm going along. But it also feels right for some reason. I'll figure it out and update this forum over time, including: errors, mistakes, and successes.
It’s rediculous they hit a small business with 15%-35% selling Ts is a smaller scale operation generally. Best of luck 🤞!!! If I wasn’t broke I’d order a few, been looking no jobs here yet.
 

Arachnophobphile

Arachnoangel
Active Member
Joined
Dec 24, 2018
Messages
904
If it's just you and you don't have employees then it's easy.

When I did my own computer business I went to the courthouse and paid $30 something for an LLC license with my company name and Tax ID.

Any money spent you need to have receipts. Copy of invoices that you charged customers. Also bookkeeping software helps but if it's just you and you're handy with Excel for example then Log everything.

Use a tax preparer to do your taxes. Also research your state's laws.

I also advise having a form of business insurance. This is dependant on type of business you have. In my case I needed it. I was working in homes and commercial properties. So I needed to be insured.

Selling T's out of your home only one thing comes to mind. If you sell OW T's and the new owner gets bit and envenomated you never know who might blame you.

Also, not even sure if it's possible insurance on your stock.
 

ladyratri

Arachnopen-minded
Arachnosupporter
Joined
Feb 15, 2022
Messages
574
This is a really cool thread. Good luck on your journey, and thanks for sharing the nitty-gritty of this process. I think it will help a lot of people who are either thinking about or embarking on this same process.

I also advise having a form of business insurance.
As you acquire any stock of animals owned by the business, you'll want to make sure you have appropriate insurance on the building where they are kept. If it's your house/apartment, you'll probably need to talk to the provider of your homeowner's or renter's insurance policy about it, and there may be complications about having an "office" at the location. The last thing you'd want is to have that complicate any kind of homeowner's/renter's claim you had to make in an emergency...

Selling T's out of your home only one thing comes to mind. If you sell OW T's and the new owner gets bit and envenomated you never know who might blame you.
I highly recommend consulting a lawyer for a review of any agreements or terms and conditions you will have a customer acknowledge/sign/etc before you actually sell anything. The CYA needs in the US are real. :(
 

Arachnophobphile

Arachnoangel
Active Member
Joined
Dec 24, 2018
Messages
904
This is a really cool thread. Good luck on your journey, and thanks for sharing the nitty-gritty of this process. I think it will help a lot of people who are either thinking about or embarking on this same process.



As you acquire any stock of animals owned by the business, you'll want to make sure you have appropriate insurance on the building where they are kept. If it's your house/apartment, you'll probably need to talk to the provider of your homeowner's or renter's insurance policy about it, and there may be complications about having an "office" at the location. The last thing you'd want is to have that complicate any kind of homeowner's/renter's claim you had to make in an emergency...



I highly recommend consulting a lawyer for a review of any agreements or terms and conditions you will have a customer acknowledge/sign/etc before you actually sell anything. The CYA needs in the US are real. :(
Yes an attorney to consult before selling is a good idea. Since people in the U.S. are so quick to sue you'll have an attorney no matter what.

Dealers I bought from and others I've read over their legal terms I've not seen anything in terms of their legal protection stated.

There's some members here that have been breeding and selling so hopefully they will chime in on what they did/do when first starting.
 

mack1855

Arachnoangel
Arachnosupporter +
Joined
Sep 5, 2016
Messages
827
Good luck.If you got the itch,you got to scratch it.BTW,are you thinking of import/exporting?.Or just your own animals?.
 

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Update #2

September, 18th, 2024
Today, I opened a small business bank account for my business. I should get a business debit card in the next 5-7 days. It's not much in-comparison to larger business bank accounts, but it's something to start. That's about it for today, but let's see what happens.

Good luck.If you got the itch,you got to scratch it.BTW,are you thinking of import/exporting?.Or just your own animals?.
Ideally, I would like to import and export, but it's still a far-reach as of now. Importing and exporting is something that we're just going to have to see in the long run.
 

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Update #3:

September 21st, 2024:

Today I got my papers from Department of Sales and Revenue. Basically it's a small certificate that acknowledges your business and it has some additional papers discussing some local tax percentages and things I don't understand. I'm still learning this stuff as I go. But I'm still waiting for the other mail from them. In the meanwhile, I really got to get an accountant to help with this stuff, because taxes, sales, and revenue are just not my specialty. Business transactions or basically any business matters cannot start until October 1st for me, so I'm still waiting.

That's about it for now, but I'll update if something else comes up.
 

Arachnophobphile

Arachnoangel
Active Member
Joined
Dec 24, 2018
Messages
904
This is an alternative to Quickbooks plus it's free. You pay for added features I believe. It will probably cost you more to pay for accountant.

I wouldn't go into this planning on making a ton of money per month. I'm sure you'll make some money but what you sell should be easy to keep track of.

The bookkeeping software also should handle tax cakculations.
 

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Update:
September 30th, 2024.

Tomorrow, I am, and should be able to access my sales and revenue tax account. Meaning I can finally operate as a business. I decided that I'm just going to have to do the accounting and bookkeeping by myself as I go with my excel sheet. As for Business Tax Filings, I will figure it out as I go. It seems there are multiple tax filings involved, so I'll learn with every mistake and hiccup. I will contact my sales tax and revenue department to ask about how it works. But that's all for now.
 

Stu Macher

Ghostface
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Joined
Oct 2, 2023
Messages
203
Liquifin, do you have a website? I didn't get too far because I gotta get back to work. But that's great wisdom 👍 A ton of respect to you and all of the breeders out there. I don't think people understand how much work breeding is (especially if it isn't a full time gig)
 

Liquifin

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Joined
May 30, 2017
Messages
2,130
Liquifin, do you have a website? I didn't get too far because I gotta get back to work. But that's great wisdom 👍 A ton of respect to you and all of the breeders out there. I don't think people understand how much work breeding is (especially if it isn't a full time gig)
I currently do not have a website. I will try to sell on here and leave my business contact email open to those interested until I can get my website domain made. There is still a lot I got to get done even after officially starting. But I'm going to see what I can do as of now.
 

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
UPDATE:

October 1st, 2024:

Today, I am officially a business and can finally operate since I have my sales and tax revenue account open for filing sales and tax. It's strange, as I am learning everything as I go. I learned that I file my E-500 sales and tax form monthly and that it needs to be submitted before the 20th of every month. For me, since I started today on October 1st. I don't have to file until next month on November 20th. The best way to explain this E-500 tax form is that it's essentially a monthly sales check-in tax submission in the most simplest way to explain it without it getting complicated.

Just like with basic tax forms like W-2 forms that we're all familiar with. There are a few of them that are filed for businesses specifically as well such as the 1040 business tax forms that come in every January 20th as of now. Which you can just get a tax person or an accountant to help file those before they're due every year on April 15th. So it's not that it's hard to understand (*which it is at times), it's just that it's confusing to understand when learning as you start. Trust me, I'm still learning with everyone here.

I don't have an accountant, but I can manage book keeping for now. I will get an accountant when it comes time for filing taxes. But for managing expenses and income, I can track it just fine for now since I operate on a small scale and that I've also still working my other jobs.

I also learn that there is a tax exemption form that can be filed for business when buying wholesale with other businesses. That way, your wholesale purchases don't get taxed if you pay for a big order of inventory/wholesale. It's called the E-595E form and is a huge lifesaver for anyone who buys from another legal business through wholesale. What it does is that it stops you from getting taxed if buy wholesale. It's a bit more complicated than that, but that is the most simple way to explain it here without it getting confusing.

I don't have a website or trademark, but I'll slowly work towards that. For those wondering what my business name is, it's called: Laxow Legacy LLC

The reason why I called it Laxow Legacy LLC is because it's my legacy, and I also want avoid the common words and names that are used by a million people in their business names like "spider, arachnid, exotic, tarantula, etc." Also, Laxow is my Youtube Channel Name or my Youtube Name for those wondering. As it's my "lax" and "low" approach of this hobby, that is away from the over-the-top or adrenaline side of the tarantula hobby.

You can call it Laxow Exotics or whatever you please, but
Laxow Legacy is the name I chose because I am just me. :smirk:

More updates to come.
 

Stu Macher

Ghostface
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Oct 2, 2023
Messages
203
I currently do not have a website. I will try to sell on here and leave my business contact email open to those interested until I can get my website domain made. There is still a lot I got to get done even after officially starting. But I'm going to see what I can do as of now.
Ok. I'm definitely interested in what sp you're targeting
 

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Update:

October 3rd, 2024:

Today, I'm just waiting for my E-595E paper to be approved from a seller and supplier. Once it's approved, I should be able to order some inventory of tarantulas. This going to be my first order as a business to test what will sell and what will just sit in my inventory. As the owner of my business (Laxow Legacy), I made sure not to over-spend on inventory. This just so I can buy myself out of this financial situation if it turns into a net loss for my business.

I won't say what it is that I'm bringing in, but I'll make a video when the time comes if I can. Until then, Laxow Legacy LLC is just waiting.

Just to note, it may not be pretty shipping when and how they come in. But I also want to be transparent about the business side of things as well. So let's wait and see.
 

Spifdar

Arachnopeon
Joined
Sep 27, 2024
Messages
7
Random piece of advice from someone who learned the hard way: if you're in the US, also check your town and county laws. There are some counties that legitimately count tarantulas as exotic pets and ban them outright. I'd checked town & state law before getting a pair of goats, thought I was in the clear until the police turned up to inform me that county law has a minimum property size requirement.

I apologize if you've already done this and cleared both. It hadn't even occurred to me, and I'd hate to see someone ex. advertise a location and find out only after the fact that they've local laws prohibiting their new business. (Given that this is a documentation of a business-starting journey, I think it's good to note for anyone reading down the line!)
 
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Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Random piece of advice from someone who learned the hard way: if you're in the US, also check your town and county laws. There are some counties that legitimately count tarantulas as exotic pets and ban them outright. I'd checked town & state law before getting a pair of goats, thought I was in the clear until the police turned up to inform me that county law has a minimum property size requirement.

I apologize if you've already done this and cleared both. It hadn't even occurred to me, and I'd hate to see someone ex. advertise a location and find out only after the fact that they've local laws prohibiting their new business. (Given that this is a documentation of a business-starting journey, I think it's good to note for anyone reading down the line!)
I've done this already long ago. No need to worry.
 

Liquifin

Arachnoking
Joined
May 30, 2017
Messages
2,130
Update:

October 9th, 2024

Today I finally got my E-595E papers approved and now I can order inventory. I just made my first order as a business and it should be coming next week. I will update what I got and try to make a video, so let's wait and see on that. I've spent a decent amount of money, but not a lot to be in debt. I'm going to play it safe and not spend more than what I can afford for now.

I will consult an accountant later this month if they're open. As for website domain, I have yet to create one because it's a lot of work to process. But my business trademark logo is coming together and will probably soon replace my current profile picture on here. But I'm still making revisions as I'm drawing and making my own logo by myself. And I think that's about it for now. I'll update in the future.
 
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