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bluegreen603

start-up logistics

bluegreen603
12 years ago

I have been researching this forum, the web in general, and all of the books I can read on the subject of starting my own nursery. I have owned businesses before (which had nothing to do with the nursery trade), so I understand the accounting, taxes, zoning etc. part of it, but I'm still a little fuzzy on the licensing procedure for nurseries. I know they vary a bit state to state. I am in Indiana, and I know I have to have a nursery dealers license and get inspected, but when does that happen? I don't even have a nursery built yet. Below I have laid out the steps by how I THINK it would happen...but I am hoping to have my list put in the correct order if I have it wrong. :)

1) visit accountant and maybe lawyer and officially set up business as sole proprietor or LLC (haven't decided yet). Part of this will be getting my tax id number.

2) Apply for Nursery Dealers License and tax re-sale license from state of Indiana.

3) Set up nursery infrastructure (which I can't do before the business is legitimate to get the best pricing).

4) Start ordering plants (liners, cuttings, etc.)from wholesale sources (because I will now have the proper documentation to show that I am a legitimate nursery.

5)Grow, market,sell, etc. and hopefully make a little money one day. :)

At what point would the state inspect my nursery? And if they inspect before they grant you a nursery license, how am I supposed to buy plants? I am planning on starting very small...more of a glorified hobby than anything, but I'm assuming that even if I just want to sell plants at the Farmer's Market or on ebay, I still need the Nursery License, right? I definitely need it to get the best prices on stock, I know...

Sorry for the long post! Thanks in advance for your help!

Jill

Comment (1)

  • calliope
    12 years ago

    If you are growing non-perennial stock, and if you are not planning on interstate commerce, you may not need a nursery inspection certificate. IOW flower and veggies don't qualify as nursery stock. If you are going to grow perennial woody or herbaceous stock, you probably shall need it. First thing you do is call your state department of agriculture and ask. In my state, one can grow forced, perennial stock out of season without a nursery inspection certificate. i.e. easter lilies in bloom. There are different types of nursery licenses. Nursery stock dealer certification, truck vending, inspection certificate. Your state department of ag can advise you once you know what you what to sell and where to sell it. They'll send you brochures with all the regulations in it.

    In my state, they want to know when you need to be inspected, and prefer you let them know the year previous to that inspection, so they can get you in the system. They are good about bending a bit, however, and you can likely expedite that.

    I had a stock inspection certificate and that was my license. I was a grower and on that were various classifications as to what and where I'd be growing and selling. Like I was certified and inspected to do brambles, woody and herbaceous stock, trees, bulbs and mums. The annuals I grew in seperate facilities and they didn't need inspected, because I did not ship or sell out of state.

    I got my vendor's license first, before I starting ordering anything. It makes you legal and then the wholesalers will deal with you to get your equipmemt and supplies. There will be all sorts of forms for credit lines with each vendor. Maybe you can charge it, but when you get big enough, they want you to establish accounts. Paper, paper, paper. Then I started building my structures and set up accounts with hardgood and plant brokers. Got the structures inspected with the utility companies and my plants started arriving. In that timeframe, I purchased commercial insurance.

    If you are a sole proprietor, you don't need a tax ID #, your social is your number. There are advantages to being an LLC as far as liability. You may want to discuss that with your legal advisor.

    Make aquaintances with your local ag extension department. They are there to help agribusinesses succeed, just like other farmers. If you've had a business before, you know the rest of the dance, governement forms like unclaimed funds.......ect. You may also have to send in a different type of income tax form. I was obliged to file farm forms.

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